Ukraine on Its Path to Economic Growth

Abstract

The article is aimed at researching the issue of Ukraine’s place in the world rankings in terms of the GDP level, welfare index and happiness index; building the productive function of our country’s economy and providing on this basis recommendations to improve the economic growth policy. In order to carry out the research, the article uses scientific methods of formal logic, in particular analysis and synthesis – to compare the characteristics and differences in development of the countries that appear opposite according to the world ratings of the GDP level, wealth index and happiness index. Based on the carried out analysis of the current tendencies of the economic growth in these countries, in particular Ukraine, conclusions have been drawn about the causes of their developmental polarity. The publication uses statistical and econometric methods, specifically, analysis of the structural characterizations of countries, which are supplemented by the indicators of population differentiation; regression analysis in the formation of the production function of Ukrainian economy of similar type as Cobb-Douglas and in the GDP forecasting for the short term; the Chow method is applied to evaluate the stability of the regression model parameters and to verify the presence of structural shifts in the sample. As for the clear problems of Ukraine’s economic development, which can hinder the process of growth, the following ones have been allocated: the long conflict in the eastern part of the country and political instability; economic income inequality; development of economy takes place mainly by means of extensive factors. The carried out calculations show that the GDP growth will continue in Ukraine in the coming years.

Keywords

• economic growth
• gross domestic product
• welfare index
• happiness index
• people inequality
• income inequality
• production function of similar type as cobb-douglas
• chow test