Foundationalism of political unpredictability occurring in financial climate of Ukraine’s regions

Economic Annals-ХХI: Volume 146, Issue 11-12, Pages: 61-64

Citation information:
Karpinsky, B., & Grygorenko, V. (2014). Foundationalism of political unpredictability occurring in financial climate of Ukraine’s regions. Economic Annals-XXI, 11-12, 61-64. https://ea21journal.world/index.php/ea-v146-15/

Borys Karpinsky
PhD (Economics),
Professor,
Head of Economics,
Management and State Regulation Department,
Lviv State Academy of Finance
3 Kopernyk Str., Lviv, 79000, Ukraine
Karpinsky01@mail.ru

Valentyn Grygorenko
PhD Student,
Lviv State Academy of Finance
3 Kopernyk Str., Lviv, 79000, Ukraine
GrygorenkoVO@i.ua

Foundationalism of political unpredictability occurring in financial climate of Ukraine’s regions

Abstract. Introduction. Changes associated with developmental inconsistency and intensification of the contradictions in economic systems at different levels in recent years, open a new phase of finding effective ways to ensure stability in the socio-economic development of the territories. In previous research, the authors substantiated the appropriateness of the «financial climate» category introduction and proposed methodological instrument to its evaluation. One of the indicators that affect the financial climate is an indicator of political unpredictability. That is why studying the issue of manifestations and impact of political unpredictability on the financial climate of the region and the state in particular is very important. Purpose. To summarize the content of essential financial climate areas and develop a conceptual approach for its estimation in real time. Methods. The common scientific methods are used to define theoretical aspects of a territory’s financial climate, to determine the impact of such specific factors, as political unpredictability of the financial climate in the regions of Ukraine. Results. Analytical estimation and integrated evaluation of financial climate of the region as an example of the proposed methodology with a detailed study of the peculiarities of manifestation and impact of political unpredictability factor in some administrative-territorial units of Ukraine clearly showed the presence of mutual dependence and predictability between the political state and the financial climate. In addition, prognostic assessment of trend changes in the political unpredictability in Ukraine indicates deterioration of this indicator and thus, index of the state and regions financial climate. The highest level of political predictability was observed in Chernihiv, Vinnytsia and Khmelnytsky regions, where it was in 2013 respectively 3.72, 3.71, 3.69 points. The lowest level of political unpredictability in 2013 was recorded in Dnepropetrovsk, Zaporizhzhia, Odesa regions and Crimea – respectively 2.89, 2.99, 3.31 and 3.31 points. Conclusions. It has been proven that manifestation of political unpredictability in decision-making at various levels, including the radical reforms implementation, impacts the financial climate of the regions, and thus, the economic system as a whole.

Keywords: Finance; Financial Climate; Region; Political Unpredictability; Financial System; Management Solutions

JEL Classіfіcatіon: E44; E60; E63; E69; H23; H39

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Received 22.10.2014