Viktoriya A. Palekhova

Petro Mohyla Black Sea National University, 

Ukraine

E-mail: viktoria.palehova@chmnu.edu.ua

ORCID 0000-0002-8481-6669

Why does Ukrainian economy grow so slowly?

Abstract. Economic growth is an indicator that synthesizes the effects of numerous factors and impulses. This article aims to highlight from a wide range of factors, those with the highest priority and correlate them with Ukrainian realities. The existing approaches to the analysis of economic growth are overviewed. The drivers of economic growth named among “the 10 rules of successful nations” by R. Sharma (2020) are investigated in detail. Each rule is considered in detail, taking into account other economists' opinions and the recent global trends. We use Ukrainian and Polish data to check how each of those rules applies. On the one hand, this study demonstrates the relevance of the proposed rules. Also, it explains both successes of Polish economy and the failures of Ukrainian one. Polish economy does not comply with only one of the development rules suggested by Sharma (2020) – the demographic one (however, the corrective measures are already being taken). At the same time, Ukrainian economy does not comply with the absolute majority of those rules. Even when problems in Ukraine are in line with global trends, they take the worst shape (populist-demagogues, bad billionaires, bad investments, etc.). The analysis helps with structuring the factors (migration is a multidimensional problem with many negative symptoms) and identifying the second-order problems (the volatility of many indicators that may indicate inconsistency in the implementation of reforms). The issues revealed in this article can be considered as a roadmap for necessary transformations.

Received: March, 2020

1st Revision: December 2020

Accepted: February, 2021

DOI: 10.14254/2071-789X.2021/14-1/2

JEL Classification: O41, O47, О52, Р52

Keywords: economic growth, growth rate, determinants of economics growth, Ukrainian economy