Bìznes Inform (Oct 2023)
The Current State of Households and Their Investment Importance in the Post-War Recovery of Ukraine’s Economy
Abstract
The article examines the current state and main trends in the development of Ukrainian households under the influence of russian aggression and outlines the main investment opportunities of households in the post-war reconstruction of Ukraine. The study is aimed at identifying the opportunities for transforming household savings into an investment resource for economic development based on an analysis of the current state of Ukrainian households in the process of post-war recovery. The theoretical and methodological basis of the article was the scientific works of domestic and foreign scholars on this topic. The set aim was achieved by a sequential problem solving using the dialectical, historical, and logical approaches. The investment behavior of households is formed under the influence of many factors. Investment decisions are influenced by internal factors such as the age structure of the household, its financial situation, educational level and the availability of investment skills of household members, etc. The formation of financial resources and investment potential of households is also influenced by macro-environment factors, e. g.: trends in economic globalization, expansion of labor markets, migration processes, etc. Household investment resources will be of strategic importance for the national economy during the post-war recovery. Among the priority tasks that need to be addressed for more effective attraction of household savings (including those with labor migrants) as an investment resource for the recovery and development of the country’s economy are: increasing the level of financial literacy of the population; stimulating the development of the stock market and simplifying households’ access to government bonds and other financial instruments; development of mechanisms for attracting financial resources of migrants and representatives of the diaspora that are considered as investments in the development of local social and infrastructure projects. Taking into account foreign experience, further scientific research is required on the creation of the necessary conditions for the reproduction and development of human capital by households (taking into account demographic changes and migration flows), the growth of household savings (including those with labor migrants) and the development of stimulating mechanisms for their transformation into investment capital for the reproduction and development of the economy of Ukraine at both the State and local levels.
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