Browsing by Author "Kryvoruchko, Mykhailo"

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    An institutional approach to the analysis of kleptocratic economy in the context of Europeanization
    (LLC Publishing House “Baltija Publishing”, 2019) Пустовійт, Роберт Фрідріхович; Pustoviit, Robert; Куклін, Олег Володимирович; Kuklin, Oleg; Криворучко, Михайло Юрійович; Kryvoruchko, Mykhailo
    Relevance. Kleptocratic economy, as an institutional system, is oriented towards a key function that involves gaining wealth by the ruling elite through the introduction of non-market transaction costs for companies and households, which is based on administrative, bureaucratic, and political violence. For this purpose, the kleptocratic states create such systems of state institutional management that give the authorities the possibility of rent-oriented behaviour, which impedes the functioning of the real sector of the economy and encourages the shadow one. Under such circumstances, transaction costs are redirected to administrative intervention into the market mechanism, rather than aimed at increasing its efficiency; property rights are not clearly specified; the level of uncertainty about rules and norms of economic behaviour increases, and the motivational system of business activity is distorted. As a result, on the one hand, inefficient allocation of resources and slow economic growth (decline) are observed, and on the other hand, there is the redistribution of income in favour of the ruling elite and its excessive enrichment, that is detrimental to the welfare of the majority of the population. The aim of the article is to analyse the political-economic formation of a kleptocratic basis, which in the future transforms the state and its economy into kleptocratic formations; defining ways of counteraction and institutional capacity for transformations in the direction of Ukraine’s aspirations for European integration. Methodological basis.The methodological basis of the research is the work of domestic and foreign scientists in the field of institutionalism and kleptocratic economy. The models of the development of a kleptocratic state and the influence of kleptocratic factors on the socio-economic processes in the country have been studied with the application of the method of analysis, systematization, and generalization. Results. It is determined that in order to liquidate the grounds of kleptocratic economy, it is of primary necessity to eliminate institutional obstacles that interfere with the unification of the legal and shadow sectors of the economy and ensure their institutional formalization. This requires the introduction of effective ways of restraining the ruling elite in order to restrict corruption abuses of the government and its close reigning coalition with special privileges and bureaucracies and form an institutional structure, in which firms and households have clearly defined property rights and also have the possibility to protect contractual rights provided by formal institutes. Particular attention should be paid to the ways of civil society’s monitoring the state information policy and methods of adopting laws, which is, the institutional foundation that guarantees the openness of information as to the actions of government institutions. According to the results of the study, definite measures are proposed, the implementation of which will ensure the opportunities for Europeanization, particularly in Ukraine. The emphasis is placed on the fact that the important factors of counteracting the kleptocratic economy are the wage reform and the “transparent” selection of employees in the public administration sector on the basis of their professional qualities only.
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    Institutional analysis of interregional socio-economic convergence in the context of European integration: interdisciplinary methodological approach development
    (Publishing House of Polonia University "Educator", ISMA University of Applied Sciences, LLC Publishing House "Baltija Publishing", 2019) Куклін, Олег Володимирович; Kuklin, Oleg; Криворучко, Михайло Юрійович; Kryvoruchko, Mykhailo
    Relevance. The problem of interregional convergence within EU-countries has been of great interest among scholars. Such an interest is explained by the fact that joining the European Union may cause deepening interregional disparities among EU-members. As a result, there is a need to develop a model of interregional convergence in socio-economic development that would help countries to face the challenges of regional development during the process of European integration. The multidimensional nature of issues relating to interregional disparities implies the usage of an institutional approach that allows an analysis combining economic and non-economic factors. The purpose of this paper is to develop an interdisciplinary methodological approach to the analysis of interregional socio-economic convergence in the context of European integration from the institutional perspective. Methodological basis. Valuable and very interesting studies along this research line have been undertaken by a number of scholars who have used different methodological approaches that include neoclassical analysis, “core-periphery” theory, institutionalism, “resource abundance curse” phenomenon. The outcomes of their studies serve as a solid ground for in-depth research on interregional convergence that allows analysing this phenomenon from different perspectives. However, the issues regarding the regional dimension of institutional influence on the socio-economic development in the context of European integration have not been thoroughly covered in the economic studies. Results. Based on analysis of theoretical and empirical studies in the areas of interregional disparities and institutional economics, the interdisciplinary methodological approach has been developed, which implies reaching the following objectives: 1) to analyse interregional disparities in EU-members within the framework of neo-classical growth theory, 2) to examine regional dynamics using methodology of “core-periphery” theory (“New Economic Geography”); 3) to research the presence of “resource abundance curse” phenomenon in the regional development in the EU-countries; 4) to examine the institutional dimension of interregional disparities; 5) to analyse position papers on the EU Cohesion Policy implementation to outline the institutional challenges of the latter. Therefore, the research output allows developing an interdisciplinary approach to the analysis of the institutional aspect of socio-economic convergence that combines a quantitative (empirical) and qualitative analysis.