FINANCIAL AND ECONOMIC REGULATION

VLASIUK Oleksandr ¹

¹The National Institute for Strategic Studies

Financial aspects of markets’ expanding and stimulation of the domestic market development within implementation of the free trade area with the EU

The EU common market has a strong potential and creates good prospects for Ukraine’s trade relations’ development. The dynamics and the structure of commodity exports of Ukraine to the EU market are analyzed in the article. Particularly, the possibilities of compensation for Ukrainian producers, caused by the potential losses in Russian markets, are in increasing exports to the EU countries, especially agricultural products and metals. Financial and economic measures, aimed to enhance foreign economic policy of Ukraine and to supply the investment needs of the domestic market, have been suggested. It is determined the necessity of formation and implementation of financial mechanisms for modernization of industrial technology, based on the systematic development of new technologies, building the license productions on the territory of Ukraine, empower the participation of foreign companies in capital-intensive projects etc. Priority areas of implementation of these objectives have been substantiated as domestic financial resources’ mobilization and innovative financial mechanisms, aimed to attract long-term funds for the targeted state investment programs and develop national export and import capabilities. It has been defined that sighing the economic part of the Association Agreement with the EU requires activation of the financial and economic measures directed to expand the domestic market, to provide a systematic modernization of the Ukrainian economy, to stabilize the motivational environment that will stimulate its systemic renovation. The issue of the financial support to the national economy modernization projects, financial resources’ accumulation for innovative and investment reformations, the trade imbalances’ abolishment and the internal market’s development have been considered.

Keywords: merchandise export, foreign policy, the EU market, Russian Federation’s market, domestic market, the modernization of the economy, investment needs, financial arrangements

JEL: F10, F13, F15

VLASIUK O. . Financial aspects of markets’ expanding and stimulation of the domestic market development within implementation of the free trade area with the EU / O. . VLASIUK // Фінанси України. - 2014. - № 4. - C. 46-60.