THE NEWEST SCIENTIFIC AND METHODICAL APPROACH TO ASSESSING THE OPENNESS OF INVESTMENT FINANCIAL SERVICES MARKETS

Abstract

The scientific article is devoted to the development of a scientific and methodological approach to assessing the level of openness of the investment financial services market. Regarding the basic concept of the scientific article – “openness” - it is proposed to interpret it according to the flow approach, according to which three types of markets should be distinguished - markets with a net outflow of investment resources, markets with a net inflow of investment resources and markets with a balanced movement of investment resources. It is proposed to evaluate the openness of investment financial services markets by the k-means method, that is, by the cluster analysis approach, the purpose of which is to divide m observations into k clusters, while each observation refers to the cluster closest to its center (centroid). The advantages of the k-means cluster analysis method are as follows: firstly, the possibility of using this method with relatively small amounts of data, since it is not necessary to meet the requirements for the normal distribution of random variables, which are mandatory for classical methods of statistical analysis; secondly, to divide a set containing n objects into k clusters, the number of clusters must be specified in advance. Approbation of the methodological approach was carried out on the example of various national models of investment financial services markets, namely: on the example of the countries of the European Union and Ukraine. In general, the markets of investment financial services of post-socialist EU countries (Bulgaria, Estonia, Latvia, Lithuania, Slovakia, Slovenia, Poland, Romania, Hungary, Czech Republic) and Ukraine belong to the group of countries with a low level of market openness, compared to other markets of EU countries. The article develops a scientific-methodical approach to evaluating the openness of investment financial services markets, which, unlike other approaches, involves: distinguishing between markets with a net inflow of investment resources, markets with a net outflow of investment resources, and markets with a balanced movement of investment resources; distribution of markets using the iterative method of "k-means" cluster analysis into three clusters: 1) markets with a high level of openness; 2) markets with an average level of openness; 3) markets with a low level of openness; determination of the average volumes of portfolio investments in securities issued by non-residents, as well as liabilities for securities in which portfolio investments were made by non-residents, for each cluster.

Keywords

• investment financial services market
• openness
• k-means method
• markets with a net outflow of investment resources
• markets with a net inflow of investment resources
• markets with a balanced movement of investment resources