IDEAS home Printed from https://ideas.repec.org/a/iaf/journl/y2018i2p96-101.html
   My bibliography  Save this article

Peculiarities of the Development of Ukraine's Financial Potential in the Period of Military Conflict

Author

Listed:
  • Andriy Polchanov

    (Zhytomyr State Technological University, Zhytomyr, Ukraine)

Abstract

Evaluation of the impact of military conflict on the financial potential of the state allows to substantiate the ways of the most effective economic recovery and the necessary infrastructure for this. The purpose of the article is to determine the specifics of the development of Ukraine's financial potential in the period of the military conflict on the basis of the integrated assessment of financial potential changes during the 2014-2016. Based on the analysis of publications, the main channels of influence of the military conflict on the financial potential of the state were identified. The peculiarities of the development of the Ukraine's financial potential in the period of military conflict were revealed. In particular, the sharp and significant increase in military spending has caused the redirection of the movement of financial resources from various sectors of the economy to national security and defense needs. As a result of the actual destruction and loss of control over assets in the conflict zone, as well as the weakening of positions in traditional markets for domestic products and capital outflows, Ukraine's GDP fell against the background of the global trend towards its growth. The growth of macroeconomic instability in the country under the influence of military and political factors led to a deterioration in the authority of the state as a borrower in the international financial market. In addition, there was an increase in the cost of bank loans for enterprises in Ukraine during the active phases of military operations. According to the author's opinion, the beginning of the deterioration of the macroeconomic and military-political situation in Ukraine could be observed even before the military conflict in the east, which, in turn, further deepened the existing imbalances in the economy and society. It was proved that the military conflicts have a negative impact on the indicators of the financial system, and so the success of economic reforms is inextricably linked with the effectiveness of measures to establish peace.

Suggested Citation

  • Andriy Polchanov, 2018. "Peculiarities of the Development of Ukraine's Financial Potential in the Period of Military Conflict," Oblik i finansi, Institute of Accounting and Finance, issue 2, pages 96-101, June.
    • Handle: RePEc:iaf:journl:y:2018:i:2:p:96-101
    as

    Download full text from publisher

    File URL: http://www.afj.org.ua/pdf/577-osoblivosti-rozvitku-finansovogo-potencialu-ukraini-u-period-viyskovogo-konfliktu.pdf
    Download Restriction: no
    File URL: http://www.afj.org.ua/en/article/577/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Demirguc-Kunt, Asli & Klapper, Leora F. & Panos, Georgios A., 2009. "Entrepreneurship in post-conflict transition : the role of informality and access to finance," Policy Research Working Paper Series 4935, The World Bank.
    2. Samuel Jibao & Wilson Prichard, 2016. "Rebuilding Local Government Finances After Conflict: Lessons from a Property Tax Reform Programme in Post-Conflict Sierra Leone," Journal of Development Studies, Taylor & Francis Journals, vol. 52(12), pages 1759-1775, December.
    3. Tony Addison & Alemayehu Geda & Philippe Le Billon & Mansoob Murshed, 2001. "Financial Reconstruction in Conflict and 'Post-Conflict' Economies," WIDER Working Paper Series DP2001-90, World Institute for Development Economic Research (UNU-WIDER).
    4. Tony Addison & Abdur Chowdhury & Mansoob Murshed, 2002. "By How Much Does Conflict Reduce Financial Development?," WIDER Working Paper Series DP2002-48, World Institute for Development Economic Research (UNU-WIDER).
    5. Miss Randa Sab, 2014. "Economic Impact of Selected Conflicts in the Middle East: What Can We Learn from the Past?," IMF Working Papers 2014/100, International Monetary Fund.
    6. Hamid E. Ali, 2013. "Estimate of The Economic Cost of Armed Conflict: A Case Study From Darfur," Defence and Peace Economics, Taylor & Francis Journals, vol. 24(6), pages 503-519, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nataliia Vygovska & Andriy Polchanov, 2019. "Estimation of the Losses of the Ukraine's Financial Potential from Military Conflict," Oblik i finansi, Institute of Accounting and Finance, issue 4, pages 70-77, December.
    2. Awasthi, Rajul & Nagarajan, Mohan & Deininger, Klaus W., 2021. "Property taxation in India: Issues impacting revenue performance and suggestions for reform," Land Use Policy, Elsevier, vol. 110(C).
    3. Park, Jungho & Han, Manhee & Lee, Youngjae, 2024. "Post-conflict economic recovery and land policy in South Korea between 1948 and the early 1960 s," Land Use Policy, Elsevier, vol. 141(C).
    4. Sanjeev Gupta, 2008. "Enhancing Effective Utilization of Aid in Fragile States," WIDER Working Paper Series RP2008-07, World Institute for Development Economic Research (UNU-WIDER).
    5. Sushanta Mallick & Brigitte Granville, 2005. "How best to link poverty reduction and debt sustainability in IMF-World Bank models?," International Review of Applied Economics, Taylor & Francis Journals, vol. 19(1), pages 67-85.
    6. Wyrwich, Michael, 2013. "Can socioeconomic heritage produce a lost generation with regard to entrepreneurship?," Journal of Business Venturing, Elsevier, vol. 28(5), pages 667-682.
    7. Serhan Cevik & Mohammad Rahmati, 2015. "Breaking the Curse of Sisyphus: An Empirical Analysis of Post-Conflict Economic Transitions," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 57(4), pages 569-597, December.
    8. repec:idq:ictduk:13551 is not listed on IDEAS
    9. Searing, Elizabeth A.M. & Rios-Avila, Fernando & Lecy, Jesse D., 2013. "The impact of psychological trauma on wages in post-conflict Bosnia and Herzegovina," Social Science & Medicine, Elsevier, vol. 96(C), pages 165-173.
    10. William Orlando Prieto Bustos & Johanna Manrique-Hernandez, 2024. "Paramilitary Conflict in Colombia: A Case Study of Economic Causes of Conflict Recidivism," Social Sciences, MDPI, vol. 13(2), pages 1-22, February.
    11. Carlos Bozzoli & Tilman Brück & Nina Wald, 2013. "Self-employment and Conflict in Colombia," Journal of Conflict Resolution, Peace Science Society (International), vol. 57(1), pages 117-142, February.
    12. Bandyopadhyay, Arnab & Bhatnagar, Sameer, 2023. "Impact of COVID-19 on ports, multimodal logistics and transport sector in India: Responses and policy imperatives," Transport Policy, Elsevier, vol. 130(C), pages 15-25.
    13. Nnamani, Obinna Collins & Ifeanacho, Kenechi Peter & Onyekwelu, Ezinne Ifeoma & Ogbuefi, Paul Chibueze, 2023. "Barriers to effective property tax reform in Nigeria: Implementation of the land use charge in Enugu state," Land Use Policy, Elsevier, vol. 126(C).
    14. Mr. Marc G Quintyn & Ms. Genevieve Verdier, 2010. "Mother, Can I Trust the Government? Sustained Financial Deepening: A Political Institutionsview," IMF Working Papers 2010/210, International Monetary Fund.
    15. repec:idq:ictduk:14000 is not listed on IDEAS
    16. Gupta, Sanjeev & Clements, Benedict & Bhattacharya, Rina & Chakravarti, Shamit, 2004. "Fiscal consequences of armed conflict and terrorism in low- and middle-income countries," European Journal of Political Economy, Elsevier, vol. 20(2), pages 403-421, June.
    17. Pouliakas, Konstantinos & Panos, Georgios & Zangelidis, Alexandros, 2009. "The Inter-Related Dynamics of Dual Job Holding, Human Capital and Occupational Choice," MPRA Paper 16859, University Library of Munich, Germany.
    18. Hönig, Tillman, 2017. "The Impact of Peace: Evidence from Nigeria," MPRA Paper 83302, University Library of Munich, Germany.
    19. Mujtaba Piracha & Mick Moore, 2016. "Revenue-Maximising or Revenue-Sacrificing Government? Property Tax in Pakistan," Journal of Development Studies, Taylor & Francis Journals, vol. 52(12), pages 1776-1790, December.
    20. repec:idq:ictduk:13663 is not listed on IDEAS
    21. Ghassan Dibeh, 2005. "The Political Economy of Postwar Reconstruction in Lebanon," WIDER Working Paper Series RP2005-44, World Institute for Development Economic Research (UNU-WIDER).
    22. Alain Kikandi Kiuma & Christian Kamala Kaghoma & Joelle Mukenyi Kalala & Allegra Kabamba Mbuyi, 2015. "Mobilité interne et entrepreneuriat des jeunes en République démocratique du Congo," Working Papers PMMA 2015-07, PEP-PMMA.
    23. Augsburg, Britta & de Haas, Ralph & Harmgart, Heike & Meghir, Costas, 2014. "Microfinance at the margin: Experimental evidence from Bosnia and Herzegovina," Discussion Papers, Research Unit: Economics of Change SP II 2014-304, WZB Berlin Social Science Center.

    More about this item

    Keywords

    military conflict; financial potential of the state; national economy; GDP; credit rating;
    All these keywords.

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iaf:journl:y:2018:i:2:p:96-101. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Serhiy Ostapchuk (email available below). General contact details of provider: https://edirc.repec.org/data/iafkvua.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.