UDC 336.7:338.124.4:339.7; JEL E44, F33, F34, F55, G01, G15
Ivashchuk, O. O., Mykhaylyak, Yu. Z., & Fents, V. Y. (2024). Finansova konkurentsiya krayin v umovakh finansovykh kryz [Financial competition of countries in the face of financial crises]. In Sotsial'no-ekonomichni problemy suchasnoho periodu Ukrayiny [Socio-Economic Problems of the Modern Period of Ukraine]: Vol. 168 (4) (pp. 73-80). DOI: https://doi.org/10.36818/2071-4653-2024-4-11 [in Ukrainian].
Sources: 17

Authors



Ivashchuk (Okonska) Olha Olehivna

Ph.D. of Economics, Associate Professor

Associate Professor of the Department of financial technology and banking business of the Western Ukrainian National University

Contacts: ogaoolga@ukr.net, kaf_bs@tneu.edu.ua

Webpages:

Mykhaylyak Yuriy Zoryanovych

Postgraduate of the Department of international economics of the Western Ukrainian National University

Contacts: y.mykhailiak@st.wunu.edu.ua

Webpages:

Fents Vladyslav Yosyfovych

Master of the Department of international economics of the Western Ukrainian National University

Contacts: vladfents@gmail.com

Webpages:

Resume

The article analyzes the peculiarities of financial competition of countries in the context of financial crises. It confirms that the global economic landscape is undergoing constant transformations that affect the competitive environment and positions of countries and force them to search for new sources and mechanisms for attracting financial resources and introducing innovations. Financial crises are identified as an element of the global economic landscape and their systemic nature is confirmed. The authors argue that financial crises have a significant speed of spread due to the interdependence of countries. The major financial crises are identified and their cyclicality, scale of coverage, and differences in the consequences for countries with different levels of economic development are analyzed. The main phases of the financial crisis of 2007-2009 are identified and analyzed on the basis of credit default swap spreads and Libor-OIS spreads, which allowed assessing the level of stress in the banking sector. The differences with the global crisis of 2020, which had an even more destructive impact on economic growth and financial markets, are substantiated. Emphasis is placed on currency crises that destabilize financial markets and economic development. This has made it possible to identify countries whose competitive positions were affected by currency crises during the pandemic and which faced sharp difficulties in the financial sector. The macroeconomic indicators of individual countries in the pre-COVID and post-COVID periods are analyzed. The article emphasizes the importance of taking into account the level of financial stress for countries during a crisis and evaluates these indices, in particular, the Composite Indicator of Systemic Stress (CISS), which measures systemic financial stress in the euro area, the Country Level Index of Financial Stress (CLIFS), and the Financial Stress Index (FSI), which characterizes problems in the financial sector of Ukraine. Based on the analysis of the dynamics of the Composite Indicator of Systemic Stress (CISS) for the euro area, the main periods of financial stress are identified. The dynamics of the Financial Stress Index for Ukraine confirms that in different periods, tensions in the financial sector were determined by global economic and political events. The impact of financial stress on the financial competition of countries is substantiated. The article analyzes changes in the attraction of foreign direct investment by countries to maintain financial competitiveness and identifies problems in their attraction. The authors confirm that the financial competition of countries covers investments, access to resources of international organizations, the latest technologies, influence on global financial markets, and participation in international trade, which leads to different financial vulnerability of countries to crises. The reasons why financial competition for external borrowing depends on economic stability in the country are outlined. The article suggests mechanisms for increasing the financial competitiveness of countries in the context of financial crises, including the use of alternative mechanisms for raising capital such as digital financial assets and green finance; the use of economic diplomacy tools; increasing the level of digitalization of financial services.

Keywords:

financial competition, global economic crises, financial crises, financial market, economic development, financial resources, foreign direct investment

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