FINANCIAL POLICY IN UKRAINE IN THE TERMS OF ECONOMIC GLOBALIZATION
CHUGUNOV Ihor,
Doctor of Economics, Professor, Head of the Finance Department of Kyiv National University of Trade and Economics
PASICHNIY Mykola,
PhD in Economincs, Associate Professor of the Finance Department of Kyiv National University of Trade and Economics
FINANCIAL POLICY IN UKRAINE IN THE TERMS OF ECONOMIC GLOBALIZATION
Background. Some key issues concerning evaluation of the impact and effects of global integration on economic growth; development of the approaches to the capital flows regulation; implementation of fiscal protectionist policy measures; role of the international financial organization in ensuring macroeconomic stability and further economic growth have become more essential in the modern conditions.
This article aims to reveal the impact of globalization on mechanism of public financial policy formulation, implementation, and decision-making determining its priorities in order to increase the competitiveness of national economy in the world ranking.
Materials and methods. The theoretical and methodological basis of this research had included: the scientific works of domestic and foreign economists on the problems of global competition, appropriate institutional framework for the financial system, increasing the efficiency of financial policy in terms of globalization. The authors have used a set of scientific methods, namely: dialectical and systems approaches, structural method, analysis and synthesis, comparative method and scientific abstraction.
Results. Economic globalization reflects the ongoing processes of increasing level of financial and economic interaction of the countries, intensification of their integration into global economy, which is manifested in the increasing amount of cross-border trade in goods and services, the increasing volume of international financial flows, and increasing flows of labor. The main challenges of globalization in modern conditions of the institutional development of society are investigated in this article. Statements to evaluate the impact and effects of economic globalization on financial policy in Ukraine were revealed, and its priorities were also determined.
Conclusion. We focus on vital questions of adaptation of national financial policy to new challenges of globalization, possibilities to rise the role of endogenous factors to ensure economic growth and moderate strong financial institutions. An open economy requires providing systematic and balanced trade promotion policy in order to stimulate exports, increasing the share of high-tech component in its structure. In the paper we highlight the importance of increasing the efficiency of budgetary compensation of VAT and setting up an export credit agency.
Keywords: financial system, financial policy, fiscal policy, monetary policy, economic growth of a country, public financial strategy, competitiveness of economy, economic globalization.
FREE FULL TEXT (PDF)