|JEL Classification: F10; G35
Burkovskaya Alla, Ph.D. (Economics), Associate Professor of Department of Finance, Banking and Insurance, Mykolaiv National Agrarian University, Ukraine.
Parakonnyi Dmytro, Applicant for Higher Education, Management Mykolayiv National Agrarian University, Ukraine.
Foreign Еconomic Аctivity and Іts Іmpact on the Вalance of Рpayments of Ukraine
Abstract. Introduction. The payment balance is an indicator of the state and development of the national economy, systematically reflects the transactions between economic systems around the world, which allows us to assess the country’s participation in the international division of labor. It also plays an important role in the mechanism of currency regulation. Control of the payment balance in the context of implementing measures to eliminate imbalances in the economy, implementing a balanced foreign economic, monetary, exchange rate policy, establishing economically sound amounts of gold and foreign exchange reserves, developing adaptive mechanisms to attract external financing are extremely important. The problem and its solution should become the main direction of state policy of Ukraine.
Purpose. The aim of this article is to study the impact of the real state of foreign economic activity on the payment balance of Ukraine and analysis of the reviewed impact indicators.
Results. The article considers the concepts and individual indicators of the payment balance of Ukraine and shows the components of the payments balance. The main indicators of foreign trade, including the volumes of imports and exports and their dynamics, have been reviewed in detail. The current state of Ukrainian foreign economic activity in general has been analyzed. The concept of the payment balance has been indicated and the connection between the change in the payment balance depending on the change of certain indicators of Ukraine’s foreign economic activity, which are closely interrelated, has been determined.
Conclusions. The main factor that negatively affects Ukraine’s payment balance is the large balance of goods deficit. The strategy to reduce the payment balance deficit should include the following elements: taking the necessary measures to eliminate internal economic imbalances; to guarantee the provision of export credits to producers, insurance against economic and political risks, the introduction of a preferential depreciation regime for fixed assets and the provision of financial benefits and other loans in exchange for the fulfillment of specific obligations of the export program; use international legal standards to regulate the payments balance; regulation of expenditures and revenues of the state budget, the use of risk insurance instruments in the financial system; increase revenue and revenue rates to increase trademark patents, licenses, and references to scientists and technicians.
Keywords: balance of payments, exports, imports, foreign trade, economic transactions.
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Received: 11 October 2020
How to quote this article?
|Burkovskaya A., Parakonnyi D. (2020). Foreign economic activity and its impact on the balance of payments of Ukraine. Modern Economics, 23(2020), 20-25. DOI: https://doi.org/10.31521/modecon.V23(2020)-03.|