Journal
УКР   ENG
Socio-Economic Problems
of the Modern Period of Ukraine
   



Collection SEPSPU -- sep2025.04.052

Repository of Institute of Regional Research UDC 314.74:339.13:330.101.541(477); JEL F22, Е21, Р23
Mulskyi, V. Ya. (2025). Systemni dysfunktsiyi ta instytutsiyni obmezhennya vykorystannya mihratsiynoho kapitalu u vnutrishn'omu spozhyvchomu rynku Ukrayiny [Systemic dysfunctions and institutional restrictions on the use of migration capital in the domestic consumer market of Ukraine]. In Sotsial'no-ekonomichni problemy suchasnoho periodu Ukrayiny [Socio-Economic Problems of the Modern Period of Ukraine]: Vol. 174 (4) (pp. 52-62). DOI: https://doi.org/10.36818/2071-4653-2025-4-7 [in Ukrainian].
Sources: 18

Authors



Mulskyi Vasyl Yaroslavovych

Postgraduate of the Lviv University of Trade and Economics

Contacts: vmulskyi@gmail.com

Webpages:

Resume

The article provides a comprehensive analysis of the systemic dysfunctions and institutional constraints that limit the effective utilization of migration capital within Ukraine’s domestic consumer market under conditions of war and post-war transformation. Migration capital is conceptualized as a multidimensional economic resource that encompasses financial remittances, accumulated savings, human capital, entrepreneurial competencies, and transnational social networks formed through international mobility. The study substantiates that migration capital performs a stabilizing function for the national economy; however, its long-term developmental impact remains constrained by structural and institutional barriers. The research examines the channels through which migration capital influences the domestic consumer market, including household consumption patterns, regional demand structures, real estate markets, and small-scale entrepreneurial activity. Particular attention is devoted to the transformation of remittance flows into domestic economic circulation and their multiplier effects. The author shows that, in the Ukrainian context, migration capital is predominantly directed towards current consumption, frequently import-oriented, thereby weakening its contribution to domestic value added and structural modernization. The article identifies key systemic dysfunctions: the predominance of a consumption-oriented model for using remittances; the import dependency of expanded household demand; regional asymmetries in the spatial concentration of migration income; the limited integration of remittances into the formal financial system; the shadow circulation of funds; and the insufficient institutional support for the entrepreneurial reintegration of returning migrants. These dysfunctions are reinforced by regulatory instability, limited financial instruments for investment, low institutional trust, and fragmented migration governance. The study further analyzes the impact of large-scale forced displacement caused by the war on the structure and dynamics of migration capital. The coexistence of labor migration and forced migration generates heterogeneous effects on the domestic consumer market, labor supply, and regional socio-economic resilience. The article argues that post-war recovery will depend largely on the state’s capacity to transform migration capital from a short-term compensatory mechanism into a strategic driver of economic modernization. Prospective scenarios of post-war migration flows are outlined, considering return intentions, demographic losses, labor market imbalances, and the potential engagement of diaspora resources. The findings emphasize the need for differentiated public policy targeting various groups of migrants (current labor migrants, forced migrants, returnees, diaspora communities, and potential migrants). Policy priorities include strengthening financial inclusion, developing investment-oriented remittance instruments, stimulating productive entrepreneurship among returnees, enhancing cooperation with diaspora networks, and integrating migration governance into regional development strategies.

Keywords:

migration capital, domestic consumer market, migration, remittances, institutional constraints, economic resilience, Ukraine, war

References

    
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