Bulletin of V. N. Karazin Kharkiv National University Economic Series

Analyses of poverty indicators using PPI methodology

T. Merkulova , D. Kosiashvili — Sun, 30 Jun 2024 00:00:00 +0000

Poverty is a negative socio-economical phenomenon which has a destructive influence on not only life quality for people who are caught in a poverty trap but for society in general. Poverty prevents society from realising its potential and leads to social development regression. The first of the sustainable development goals declared by the United Nations in 2025 as global goals of civilisation development until 2030, is to overcome poverty. The growth of poverty rates is observed for the first time in twenty years, and this requires studying the causes and developing policies to prevent this tendency. It is well-known poverty has various forms and national and cultural features, that should be taken into account when solving the poverty problem. One of the relevant tasks in studying this problem is the development of adequate methods of measuring poverty and determining the category of people who are considered poor This study aims to develop a clusterization model using the set of socio-economic indicators in order to identify the poor people cluster. The survey includes 8400 respondents from 7 European countries. Developing the model was carried out using machine learning methods in several steps: 1) data processing and statistical analyses; 2) selection of significant indicators by the classification model; 3) clustering by k-mean algorithm; 4) hierarchical clustering; 5) comparing outcomes of modeling and interpretation of results. The selection of indicators was carried out by classification methods using PPI methodology. Data processing and analyses were performed using Python. Using this approach we can split the population into groups with different living standards levels identifying the poor people group with a simple questionary considering national (local) features. This help to increase the effectiveness and timeliness of poor families’ support.

Alternative energy in Ukraine. System dynamics methodology in RES research

T. Bitkova, K. Manakhov — Sun, 30 Jun 2024 00:00:00 +0000

The growing demand for electricity, which is expected to double by 2030 and quadruple by 2050 compared to 2000, underlines the urgent need for widespread deployment of renewable energy sources (RES) such as wind, solar, bioenergy, hydro and geothermal ones. Initiatives of many countries reflect the growing recognition of the need of transition to sustainable energy systems. According to the UN, Sustainable Development Goal 7 is "to ensure access to affordable, reliable, sustainable and modern energy for all". The paper examines the foreign experience of mixed energy development strategies and discusses the hypotheses of RES impact on key processes taking place in various spheres of life. In Ukraine, the transition to renewable energy is vital due to not only ecological or economic necessity, but also to a strategic one. According to the updated energy strategy of Ukraine until 2030, alternative energy should make up 25% of the total energy production, which corresponds to the country's obligations to the European Energy Community. But Ukraine faces a number of economic barriers that prevent deployment of renewable energy sources. These include high initial investment costs, unstable public policy frameworks and limited access to necessary financing, which together create a difficult investment climate that discourages domestic and foreign investors. By the start of the war in 2022, renewable energy sources accounted for about 13.4% of total energy production in Ukraine. However, the destruction of energy infrastructure throughout the country, including that of the renewable energy sector, led to a sharp decrease in this indicator up to 5-6%. A special attention in this study is paid to the use of the System Dynamis (SD) concept of simulation in RES research. Analysis of the latest publications and reference models testify to the effectiveness of the SD methodology and allowed to form the base model assumptions. Paper presents a structural SD model for the analysis of the implementation of renewable energy in Ukraine, taking into account the complex interaction of economic, social and environmental challenges to assess the long-term potential consequences of the transition to RES.

Analysis and forecasting of pet food markets using extrapolation methods

O. Nikolaieva , YE Svishchova , A. Hladka — Sun, 30 Jun 2024 00:00:00 +0000

One of the manifestations of the socialization of the economy is a change in the behavior of consumers, which leads to shifts in the structure of markets, the nomenclature of goods presented on them, and fluctuations in the ratio between supply and demand. A vivid example of such changes is the market of pet products, where thanks to the phenomenon of humanization of the attitude towards animals, it became possible to observe the growth of the market as a whole, and the appearance of new products and services for four-legged consumers. In this study, the main markets for distribution of pet products are analyzed, in particular, world, European and Ukrainian. General trends and factors influencing them are highlighted. The analysis of this market in Ukraine made it possible to identify common features in the development of the domestic pet industry and in the countries of Europe and the whole world, and to prove that the domestic market of pet products is promising. Sales volumes of Ukrainian pet food market show a stable upward trend. From the variety of formalized methods for forecasting the demand in pet food markets, the authors chose extrapolation methods, namely, methods of trend analysis and adaptive methods of exponential smoothing. Using trend models, as well as adaptive methods, point and interval forecasts of demand indicators on the global and European markets were built. Trend models were built for the total value of the global pet food market and the total demand for these products worldwide. Point and interval forecasts were built on the basis of these models with a sufficient degree of adequacy and accuracy. The trend model of the Tornqvist function was applied to build forecasts on the Ukrainian pet food market. To forecast the annual European sales of animal nutrition, the adaptive method of triple exponential smoothing was applied and point and interval forecasts for the next four periods were obtained. In all cases, the selected predictive models demonstrated satisfactory predictive ability and satisfied the adequacy criteria.

The application of digitization and digital marketing for the recovery of Ukraine's economy

N. Nazarenko, A. Nochovka — Sun, 30 Jun 2024 00:00:00 +0000

The article explores the potential application of digital technologies and digital marketing for the post-war recovery of Ukraine's economy. The war in Ukraine has led to significant destruction and economic losses, making it crucial to explore pathways for recovery and development of the Ukrainian economy using modern digital tools. It is noted that the analysis and justification of the role of digital technologies in economic recovery from the perspective of digital marketing have not been adequately explored. The purpose of the article is to analyze the characteristics of digitalization and digital marketing and to determine the possibilities of their further application for the development and post-war recovery of Ukraine's economy. The main direction of state development in the field of digital technologies has been identified. The article investigates the emergence of the term "digital marketing" and provides an author's definition of the concept. An overview of the fundamental theoretical provisions of this category is presented. The basic principles of implementing and operating digital marketing in conditions of armed conflict are clarified. The main advantages and challenges of applying digital marketing for economic recovery are analyzed. The rapid adaptation of digital marketing to changes and a focus on continuous improvement of knowledge regarding new methods and tools in this field are examined. The article contains recommendations for the implementation of digitalization and digital marketing in various sectors. For successful application of digital marketing methods and tools, the government, businesses, and civil society must adopt a comprehensive approach. The practical application involves applying the findings of the study to further develop strategies for post-war recovery of the state. Recommendations for the implementation of digitalization and digital marketing can be beneficial for enterprises, government bodies, and civil organizations.

The role of technology in the strategic planning of international companies: digital transformation and efficiency

O. Zaika, I. Chubka — Sun, 30 Jun 2024 00:00:00 +0000

Strategic planning in the modern world is becoming an integral and important management tool for international companies. This article examines the main aspects of strategic planning, defining its essence, features, and challenges faced by international companies in strategic planning. The study focuses on the strategic planning of international companies using modern technologies and analyses the impact of digital transformation on their activities. The main goal was to identify prospects and challenges in this area. The article reflects modern approaches to strategic planning, emphasizing the role of technology, in particular digital transformation, in the success of international companies in the world of challenges in the form of globalization and digitalization. The article provides an analysis of the concept of digital transformation, emphasizes its prospects and reveals its key role in the strategic planning of international companies. The study examines various technologies used in strategic planning and compares their functional and price characteristics. Highlighting the significance and impact of digital innovations on strategic planning, the article also offers an in-depth consideration of the possibilities of using modern technologies in decision-making and strategy development, in particular in the form of introducing analytical systems, to improve the efficiency of strategic and operational activities of international companies. The issue of digital transformation is explored, which allows for a more complete picture of the holistic impact of technology on companies' strategic decisions. Based on research of comparing analytical systems, the author concludes that effective digital transformation can significantly improve the strategic planning of international companies, providing them with competitive advantages and increasing their efficiency in the global business environment. Thus, consideration of digital transformation is becoming an integral part of successful strategic planning of international companies, contributing to their sustainable development and competitiveness.

Innovations at Ukrainian enterprises: use of information and communication technologies

S. Babych, D. Babych — Sun, 30 Jun 2024 00:00:00 +0000

Innovative direction of the country's development contributes to its economic growth. Innovations are considered to be an important factor for achieving success in competi-tive and global economy. The use of innovations can improve the level of communica-tion between market stakeholders. The correct implementation of innovations and the use of innovative potential by enterprises helps to increase their competitiveness and achieve success in the market. Thus, assessing the current state and determining the prospects for the implementation of innovative activities at enterprises is an actual is-sue. The aim of the study is to analyze the indicators of innovations implementation in terms of the use of information and communication technologies (ICT) at Ukrainian enterprises. The main indicators characterizing the activities of business entities in Ukraine during 2018–2022 are considered, in particular, their number and volumes of products (goods, services) sold. A downward trend in the values of the indicators is revealed, which is due, in particular, to the COVID-19 pandemic and the full-scale war in Ukraine. The directions of use of information and communication technologies are determined, namely: access to the Internet, use of social media, cloud computing ser-vices. The dynamics of the number of enterprises connected to the Internet is character-ized by fluctuations and a sharp decline in 2022. Social networks are the most popular way of using social media among Ukrainian enterprises. Social networks provide an opportunity to create a community between market participants. In addition, it is one of the advertising channels, an opportunity to attract the target audience and establish long-term relationships with the consumer for success in the market. Only about 10% of all enterprises in Ukraine use cloud computing services. The article presents a subjective assessment, namely, the results of a survey of Ukraini-an companies based on 2023 data regarding using the new technologies, including: ChatGPT and Artificial Intelligence, cloud services and data storage, online services and platforms for remote work organization, QES for personal identification, CRM sys-tems for working with clients, creation of mobile applications and chatbots in messen-gers. In addition, in 2023, Ukrainian companies, using their innovative potential, have implemented an upgrade of work processes and have chosen directions for strategic changes in difficult operating conditions.

Advertising in digital applications and mobile games as a monetization element

V. Bobrov — Sun, 30 Jun 2024 00:00:00 +0000

The paper explores the specifics of the term "monetization" for video games and examines similar monetization systems for non-gaming platforms. It reviews the dynamics of the video game market as a whole, particularly the mobile game market, and analyzes the current state of the mobile gaming market. The stages of market formation and the evolution of digital goods are presented in chronological order, using video games as an example, along with the evolution of advertising integrations from the 1990s to the present day. Examples of advertising usage before the widespread adoption of mobile devices and connectivity are provided, such as product placement and DLC. The characteristic features of different sales systems are defined: Free-to-play, Freemium, Pay-to-play. Their advantages and distinctive monetization features are outlined, and the reasons for the dominance of Free-to-play and Freemium in the current mobile gaming market are identified. The work offers a detailed characterization of the main types of video advertising in mobile games: native advertising, video advertising, rewarded video ads, demos, and contextual advertising. The reasons for the proliferation of each type of advertising are revealed, and the main advantages and challenges of using video advertising, in general, are identified for both advertisers and publishers. Examples from modern mobile games and applications are systematized depending on the advertiser, the game distribution model, and the complexity of implementation. Specialized monetization elements specific to certain types of video advertising are examined. The research results can be used to build a monetization strategy for developing freemium and free-to-play gaming or entertainment projects, to assess the appropriateness of using video games as a platform for placing one's advertising, or to predict user behavior from the perspective of the experience economy and interaction with digital goods.

The effect of labour migration and structural changes on economic development

O. Nosova — Sun, 30 Jun 2024 00:00:00 +0000

The article aims to analyze effects of the labour migration and structural changes on economic development. The Russian invasion in Ukraine increased geopolitical risks for the global economy in 2022 and in the present time. The most immediate economic impact of the Ukrainian conflict was sharply rising food, energy, and commodity prices in the world. In the process of massive population displacement people were forced to leave their homes and lose their livelihood. The analysis of basic approaches to the effects of labour migration, and structural changes on global development highlights the contemporary challenges for the current institutional and structural setting of the economies and societies. The current global crisis is likely to have deep-reaching effects that we cannot foresee. It has been mistaken to believe that migrants will serve as a safety valve for developed economies, by providing labour in times of expansion and going away in the recession (Castles & Vezzoli, 2009). The assessment of structural change on the inclusiveness and sustainability of socioeconomic development depends on the specific country. Both the relative supply of skills and skill-based technological change tends to increase income inequality, though not in all countries (Nomaler et al., 2021). The study of the impacts of international emigration on the evolution of the institutions in the origin countries demonstrates the influence of emigration per se (i.e., people who left the country can voice from abroad), and the transfer of the norms of the host country to the home country. The existence of both impacts was confirmed using different indicators of institutional quality. The effects appear stronger when skilled emigration is considered (Beine & Sekkat, 2013). It is proposed that new job structures based on hiring the low-cost labour will appear under the effects of increasing labour migration. One of the decisions could be adoption by policymakers of new systems of global migration governance based on international collaboration and the rule of law by taking lessons from the crisis experience. It will be directed to define sectors that can speed up the process of rebuilding the global economy. Diversifying the economy, increasing product/service sophistication, using comparative advantages and transfer of resources (both labour and capital) leads to more productive activities and a rise in well-being.

Methodological aspects of analysis of production costs of an industrial enterprise

O. Nesterenko, D. Khudiakova — Sun, 30 Jun 2024 00:00:00 +0000

The article is aimed at substantiating the methodological and organisational provisions of the analysis of costs of production of industrial products and developing recommendations for their use at industrial enterprises to improve their competitiveness. The article substantiates that in order to achieve efficiency and sustainability of production processes, it is important for industrial enterprises to systematically improve their cost management strategies. The theoretical provisions of cost analysis are substantiated. Approaches to organising and conducting cost analysis are systematised. A conceptual model for analysing production costs of an industrial enterprise has been developed, which includes the purpose of production cost analysis, its tasks, subjects, objects, principles, and methodological tools. The priority tasks of analysing the production costs of an industrial enterprise include: efficiency of the production process; determination of the cost of production; planning and control of budgets; and managerial decision-making. It is substantiated that the costs of production of industrial products are closely interrelated with some indicators of production efficiency, such as: indicators of profitability, liquidity, financial stability of enterprise. The analysis of production efficiency indicators is carried out on the example of the activities of the production and trading enterprise "PTC "ECMI" LLC. To analyse liquidity, the following indicators are used: total liquidity ratio, intermediate liquidity ratio and absolute liquidity ratio. The following indicators were used to analyse financial stability: autonomy ratio, financial stability ratio and financial risk ratio. To analyse profitability, the following indicators were used: return on assets (total), return on operating expenses, and return on sales. In order to assess changes in the structure of production costs, the article analyses the cost by cost elements, estimates their total volume, structural changes, and traces the dynamics of changes in the period from 2020 to 2022. The results of the analysis show that the company has optimised its costs, which has led to their reduction and increase in profitability. It is substantiated that an efficiently established analytical system enables the enterprise to timely monitor changes in production and prevent cost overruns, theft and inefficient use of raw materials, which is especially relevant during the period of military aggression in our country.

Utility sector of tourism infrastructure in Industry 4.0: challenges and solutions

N. Chernenko, A. Kukharuk, Ya. Hlushchenko, O. Korohodova — Sun, 30 Jun 2024 00:00:00 +0000

This article is an original attempt to define the necessity of providing the components of Industry 4.0 of the utility sector of tourism infrastructure. The problem is that the tourism utility sector faces challenges in Industry 4.0, such as the need for infrastructure modernization, digital integration, sustainability, and meeting changing tourist expectations. The study is conducted based on data from four (Croatia, Albania, Portugal, Montenegro) leading countries in terms of international tourism receipts as a percentage of GDP, as well as Romania and Ukraine as countries with great tourism potential. The significant impact of Industry 4.0 technologies on the development of tourism in these countries, is proved in this article. This study seeks to investigate the obstacles encountered by the tourism infrastructure utility sector in Industry 4.0 and suggests solutions to overcome these challenges. The article proposes a conceptual framework for creating a new scenario for the utility sector, which will be used for efficiently increasing operation of tourism infrastructure objects. Using empirical research, two scenarios are suggested: an optimistic one, where smart technologies facilitate the traveler's life, and a pessimistic one, where technologies do not affect the course of the journey. Also, the linear regression method was used to create the forecast in accordance with the offered scenario. Presented scenarios help identify how smart technologies can make the traveler's life easier by providing fast and efficient travel planning through online applications, and also, show the negative consequences, when technologies do not work properly or unforeseen circumstances arise, leading to delays, disrupted plans, and inconveniences during the journey. The authors noted that the scientific novelty of this research lies in its consideration of the impact of smart technologies on decision-making processes in complex travel situations. A forecast of the number of tourists, and travelers to the studied countries until 2024, was made.

Features of formation and accounting of registered (share) capital for enterprises of various organizational and legal forms

I. Kosata, O. Diahileva, A. Peredera — Sun, 30 Jun 2024 00:00:00 +0000

The accounting of registered capital is a crucial aspect of the financial activities of any company. It determines its financial potential, influences its creditworthiness, and attractiveness to investors. A profound understanding of the processes of formation and accounting of registered (equity) capital not only ensures the reliability of financial reporting but also serves as a factor in managerial resources, strategic planning, and attracting investments for further development. This article discusses the peculiarities of forming registered (equity) capital by components according to the characteristics of different legal entities and forms of ownership. It reflects the definition of registered (equity) capital according to IFRS and other legislative documents. A detailed description of the subaccounts of account 40 "Registered (Equity) Capital" is provided, including statutory, payment, and other registered capital. Various types of economic entities are identified and characterized: joint-stock company, limited liability company, additional liability company, general partnership, and limited partnership. The difference between the concepts of statutory, registered, equity, and other registered capital is outlined. Legislative regulation of the creation and amendments to registered capital is highlighted. Founding documents, minimum initial contribution size, minimum statutory capital size, line for initial external capital injection, and maximum term for forming statutory capital are reflected for each organizational and legal form. Special attention is paid to the accounting of registered (equity) capital, considering its components in the context of the formation of economic entities with all organizational and legal forms and forms of ownership. The article thoroughly analyzes the principles and methodology of accounting for registered capital for different types of organizations and provides examples of the most common transactions related to the creation and accounting of registered capital. Clear definitions of requirements and standards regulating this process are also provided.

The relevance of the transition to a circular economy for Ukraine

S. Voitko, A. Vyshnevska — Sun, 30 Jun 2024 00:00:00 +0000

The article deals with the problem of solid waste accumulation in the world and in Ukraine. The volumes of municipal solid waste and its distribution in different regions of the world are analyzed. The importance of efficient waste collection as a key aspect of waste management is emphasized, as well as the need for immediate measures to prevent further deterioration of the environmental situation. The article presents an analysis of the pre-war situation with waste management in Ukraine in terms of such indicators as the dynamics of waste generation and the share of its recycling, the number of operating business entities of various sizes in the field of waste processing. In addition, the article highlights the impact of military events on the environmental situation in the country and emphasizes the need for changes to build a sustainable economy, which may be possible through post-war recovery. In the context of finding solutions to reduce the negative impact of waste on the environment, the authors consider the concept of circular economy, which involves production aimed at reusing resources and reducing the volume of waste generation in order to ensure sustainable development. The basic principles of the circular economy and the hierarchy of waste management that has been formed in the EU are presented. In addition, the article presents the main program documents in Ukraine aimed at developing the circular economy, such as national strategies, plans and concepts. The article also examines the obstacles to the successful implementation of circular economy principles in Ukraine, such as imperfect regulatory framework, insufficient funding for environmental protection and waste management, and the lack of an integrated approach at various levels of the economy. Based on the analysis, the authors conclude that it is necessary to intensify efforts to implement the principles of the circular economy at Ukrainian enterprises. The authors emphasize the need to create incentives for innovation and investment in modern technologies to reduce the harmful effects of waste on the environment.

The system of horizontal fiscal equalization in the context of ensuring the implementation of the principles of unity and fairness of the budget system of Ukraine

N. Yaroshevych, I. Kondrat — Sun, 30 Jun 2024 00:00:00 +0000

The article is dedicated to defining the peculiarities of the system of horizontal fiscal equalization and substantiating the proposal for its improvement in terms of ensuring the implementation of the principles of equality and fairness of the budget system of Ukraine. The tax capacity index and reverse and basic grants were calculated for 1439 municipalities of Ukraine for 2022, taking into account the possible inclusion of the Kyiv city budget in the horizontal fiscal equalization system. This index is also computed for 2023 based on the population of territorial communities as of the beginning of 2022. It has been established that the exclusion from the equalization system of municipalities with the highest tax potential artificially increases the tax capacity of all other municipalities, thereby reducing the amount of the basic grant for grant recipients, and reduces their ability to fulfill responsibilities without attracting debt financing, and exacerbates the already significant development disparities between the capital and the regions. The involvement of the Kyiv city budget in the system of equalizing horizontal fiscal imbalances will satisfy the criteria of fairness and completeness in accordance with the principles of the budget system of Ukraine, significantly reduce the burden on the donors of the reverse grant and at the same time create a minimal (3% of the total need for basic grants) additional burden on the state budget. The comparison of the scheduled data for 2023 and the estimated data has shown that the amount of the estimated reverse grant is significantly higher than the scheduled amount of the grant for certain municipality, in particular for Kharkiv UTC (2.1 times) and Zaporizhzhia UTC (2.5 times), which suggests that the Ministry of Finance did not comply with the approved calculation methodology when planning interbudgetary transfers for 2023. The reasons for significant differences in the annual growth rates of PIT revenues (from 14.8% to 45%) to the budgets of different municipalities require additional research, as this makes the tax potential of a municipalities disproportionate to its grant need or grant potential. It is suggested to improve the system of horizontal equalization of fiscal imbalances in Ukraine by implementing EU legal norms into Ukrainian legislation, as a result of which personal income tax should be transferred to the local budget at the place of residence of the taxpayer, not at the place of registration of the tax agent.

Sharing economy and taxation in the hospitality industry

T. Kalaitan — Sun, 30 Jun 2024 00:00:00 +0000

The purpose of the article is to study the problematic issues of taxation in the field of short-term rental using online platforms. Objectives: (1) to study the scale and development trends of the hospitality industry's sharing economy; (2) to determine the peculiarities of payment for short-term rental housing by booking through online platforms; (3) to study foreign experience in organising the collection and payment of taxes in the field of short-term rental housing using an online platform. The study found that the short-term rental sector is growing rapidly. This trend has largely been driven by the emergence of digital platforms that act as intermediaries between homeowners and tourists around the world. According to Eurostat, the number of nights spent in accommodation booked through online platforms exceeded the level of 2019 and reached 25.4% growth in June 2023, which is significantly higher than the recovery rate in the traditional sector. At the same time, the existence of such a successful business model creates certain tensions between service providers, market operators and the state. The fact that the sharing economy operates through online platforms makes it difficult to assess it within the framework of tax legislation. Airbnb has a positive practical experience in solving problematic issues in the field of short-term rental taxation. This company collects and remits taxes in the regions where it has entered into agreements with governments or is required by law to do so. In Ukraine, in the post-war period, it would be advisable to introduce the practice of automatic collection of tourist tax by online platforms (at the time of booking) with its subsequent transfer to regional tourist funds. The creation of such funds will form a prerequisite for the targeted use of tourist tax funds for tourism development.