The purpose of this paper is to evaluate the peculiarities of the financial behavior of households as one of the main factors of country competitiveness. The authors undertook to fulfill this aim by dividing household expenditures into fixed and variable elements, and investigating each element separately. The analysis is based on data from the State Statistics Service of Ukraine and encompasses the period of 2001-2017. A chi-square test was used to test the selected data. A high propensity of households to consume stimulates a greater internal market size within a country, a correlation which is also an important indicator of competitiveness in Ukraine, where a high proportion of savings of household income is typical. The situation in Ukraine shows a great positive impact of savings to the development of the local financial market. Ukrainian households tend to accumulate savings with the intent of creating a financial safety net for themselves in anticipation of future economic downturns. As is the case in many Central and Eastern European countries, Ukrainian households hold most of their savings in foreign currency and bank deposits. This allocation has proven itself to be resilient to changes in the expected returns of the assets in question. The marginal propensity of Ukrainian households to purchase non-financial assets is small, but relatively stable. The internal crisis in 2014-2016 triggered substantial changes in the financial behavior of Ukrainian households. The post crisis period of 2017 has not yet significantly changed the financial behavior of Ukrainian households. As in the past, today households keep a great deal of cash outside the banking system, with the largest share of the non-financial assets of households held in foreign currency.
Financial imbalance is the reason of a macroeconomic instability. This study aims at identifying the institutional causes of financial markets imbalance. The authors consider that financial intermediaries in Ukraine work in a speculative market segment carrying out high-risk transactions with the purpose of earning a huge profit. In fact, in Ukraine the role of these institutions in the investment process financing is insignificant. The authors show that soundness of banks along with the ease of access to loans and a low level of confidence in national banking system are the main reasons of instability in financial market in Ukraine. Due to scarcity of financial capacity and refusal to carry out transactions in a high-risk market segments, insurance companies are unable to entirely perform functions of risk redistribution. Competitiveness of Ukrainian financial market remains low with a limited financial services nomenclature and it may be considered to be attractive for potential foreign investors.
The article examines the current tendencies of the government indebtedness in the world. It proves the rapid growth of the government debt in the different countries around the world after the 2008–2009 financial crisis and analyzes the reasons for government debt increase in particular countries and its consequences. The study is devoted to the research of the government debt in developed and developing countries. Particular attention is paid to the government debt of Japan, the USA, the European Union countries. In the article, the government debt of Ukraine, its tendencies, and consequences for the economy are analyzed. The state borrowings in Ukraine are often used for financing the servicing and payment of the existing debt. Government debt can be an important investment source and used for the development of the economies. But in the conditions of its rapid and unlimited growth, government indebtedness can be a burden for the economy.
Household demand for credits is quite volatile, which requires constant evaluation of it changes. The purpose of the paper is to identify quantitative signals, the use of which increases the predictability of the credit market development. The study utilizes technical analysis methods for an econometric estimation of trends in household demand for credits in Ukraine for the 2002–2019 period. Based on the analysis of historical market lows, it was argued that with all the negative effects of destabilizing factors, the household demand for loans will not fall below the market support point of UAH 50 million. The financial behavior of Ukrainian households when choosing the type of loan is stable and does not change with fluctuations in GDP. Short-term loans are quite dynamic and largely depend on macroeconomic conditions, provoking market movements. If the relevant direction is supported by medium-term loans, the general market trend will correspond to the GDP trend. The demand for long-term loans is quite inertial, its change does not affect the overall market trend. The constant and variable elements of household demand for credit are highlighted.
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