Andrii Zolkover, ORCID: https://orcid.org/0000-0002-8176-1850
PhD, Doctoral Student, the Department of Business Economics and Tourism, Kyiv National University of Technologies and Design, Ukraine
Jurij Renkas, ORCID: https://orcid.org/0000-0001-7139-5458
PhD, Assistant professor, the Department of Accounting, Cracow University of Economics, Cracow, Poland
This article is devoted to the development of methods for assessing the integrated level of macroeconomic stability of the country. Systematization of literature sources and approaches to determining the factors influencing macroeconomic stability and methods of its assessment showed that this problem is still unresolved and needs attention, given the epidemiological threats as additional factors destabilizing the world economy. The urgency of solving this scientific problem lies in need of an adequate and timely response to changes in the development of the national economy to prevent them from escalating into crisis phenomena. The study of assessing the integrated level of macroeconomic stability in the country was carried out in the article in the following logical sequence: 1) the formation of the statistical base of the study in terms of three groups of indicators: stimulants, disincentives and nominators; 2) bringing the indicators of the statistical input base of the study to a comparable form; 3) determining the priority of the impact of the components of the indicator in the integrated indicator; 4) assessment of the integrated level of macroeconomic stability, considering both the ranking of input indicators and the strength of their impact on the formation of the desired integrated indicator; 5) conducting a qualitative interpretation of the integrated level of macroeconomic stability. The methodological tools of the study were the following methods: minimax approach to the normalization of the statistical base of the study; sigma-limited parameterization method and Pareto method for determining the priority of the impact of the components of the indicators of the integrated level of macroeconomic stability; Erlang’s formula for estimating the integrated level of macroeconomic stability. The study period was 2006-2019. The countries selected for the study were the following: Poland, the Czech Republic, Lithuania, Latvia, Hungary and Slovakia. The article presents the results of the assessment of the integrated indicator, which showed that Lithuania, Latvia, the Czech Republic and Poland achieved macroeconomic stability on average from 2014 at 84%, Slovakia – 65%, while Hungary had relative stability from 2010 to 2016, at the level of 76-82%, but in 2017-2018 there is a destabilization of economic development to 45%. The results of the study can be useful for public authorities in determining macroeconomic stability as an element of national economic management, the use of which will protect against financial and economic crises by taking a set of preventive measures.
Keywords: Pareto diagram, macroeconomic stability, minimax approach, ranking, sigma-limited parameterization, Erlang’s formula.
JEL Classification: E63.
Cite as: Zolkover, A., Renkas, J. (2020). Assessing The Level Of Macroeconomic Stability Of EU Countries. SocioEconomic Challenges, 4(4), 175-182. https://doi.org/10.21272/sec.4(4).175-182.2020
This work is licensed under a Creative Commons Attribution 4.0 International License
- Awujola, A., Iyakwari, A. D. B., Bot, R. E. (2020). Examination Of The Relationship Between Oil Price Shock And Macroeconomic Variables In Nigeria. SocioEconomic Challenges, 4(1), 102-110. http://doi.org/10.21272/sec.4(1).102-110.2020.
- Bhowmik, D. (2020). Trends, Cycles and Seasonal Variations of Ukrainian Gross Domestic Product. Financial Markets, Institutions and Risks, 4(3), 80-94. https://doi.org/10.21272/fmir.4(3).80-94.2020.
- Bilan, Y., Lyeonov, S., Lyulyov, O., & Pimonenko, T. (2019) Brand management and macroeconomic stability of the country. Polish Journal of Management Studies,19(2), 61-74. DOI: 17512/pjms.2019.19.2.05.
- Dudchenko, V. (2020). Role of Central Bank Independence in Banking and Financial Stability Ensuring. Financial Markets, Institutions and Risks, 4(2), 115-121. https://doi.org/10.21272/fmir.4(2).115-121.2020.
- Duraj, B., & Moci, E. (2015). Factors influencing the bank profitability – empirical evidence from Albania. Asian Economic and Financial Review, 5(3), 483-494. DOI: 18488/journal.aefr/2015.5.3/102.3.483.494.
- Eddassi, H. (2020). Fiscal Regime and Tax Policy in Resource-Rich Countries In The Process Of Globalization: Literature Review. SocioEconomic Challenges, 4(2), 67-77. https://doi.org/10.21272/sec.4(2).67-77.2020.
- Jayawickrema, V. (2019). Monetary Policy Rules and Macroeconomic Stability. SSRN Electronic Journal.https://doi.org/10.2139/ssrn.3443113.
- Jafarzadeh, E., & He, Shuquan (2019). The Impact of Income Inequality on the Economic Growth of Iran: An Empirical Analysis. Business Ethics and Leadership, 3(2), 53-62. http://doi.org/10.21272/bel.3(2).53-62.2019.
- Nela, D., Armend, M., & Hasan, M. (2019) Macroeconomic Stability and Labour Market Efficiency in Kosovo: A Competitiveness Approach. IFAC-Papers, 52(25), 142-147. https://doi.org/10.1016/j.ifacol.2019.12.462.
- Osei, D. (2018) Dynamics of foreign exchange reserves accumulation and macroeconomic stability: the Ghanaian perspective. Aziya i Afrika Segodnya, Issue 10, 61-65. DOI: 31857/S032150750001018-1.
- Palienko, M., Lyulyov, O. (2018). The Impact of Social Factors on Macroeconomic Stability: Empirical Evidence for Ukraine and European Union Countries. SocioEconomic Challenges, 2(1), 103-116. DOI: 21272/sec.2(1).103-116.2018.
- Stanciu, L. (2019). Financial Stability – Fundamental Pillar of Macroeconomic Balance and Stability. International conference knowledge-based organization,25(2), 93–97. https://doi.org/10.2478/kbo-2019-0062.
- Macroeconomic imbalance Procedure. Eurostat. URL: Indicators – Macroeconomic Imbalance Procedure – Eurostat (europa.eu). Available at: https://ec.europa.eu/eurostat/web/macroeconomic-imbalances-procedure/indicators.
- Miller, A.D. (2019). Current Mining Taxation Policy Implemented by both Mongolia and Kazakhstan: The Development Comparatives between Ulaanbaatar and Astana. Business Ethics and Leadership, 3(2), 39-52. http://doi.org/10.21272/bel.3(2).39-52.2019.
- Molotok, I. (2020). Analysis Of The Relevance Of Fiscal Decentralization In Ensuring Country Investment Attractiveness. SocioEconomic Challenges, 4(2), 99-105. https://doi.org/10.21272/sec.4(2).99-105.2020.
- Munir, K., & Riaz, N. (2019). Fiscal Policy and Macroeconomic Stability in South Asian Countries. Revista Hacienda Pública Española, 228(1), 13–33. https://doi.org/10.7866/hpe-rpe.19.1.1.
- Reshetnikova, I., Shvydanenko, H., & Boichenko, K. (2020). Determinants to Provide the Efficiency of Integrated Development of the Light Industry Enterprises. Marketing and Management of Innovations, 3, 157-169. http://doi.org/10.21272/mmi.2020.3-11.
- Shymon, S., Kolomiets-Ludwig, E., Osiejewicz, Jo., Krawczyk, D. & Kaminska, B. (2020). The Role of Country Brand in Providing Economic Resilience. Marketing and Management of Innovations, 1, 303-311. http://doi.org/10.21272/mmi.2020.1-26.
- Toyin, O.W., Oludayol Ad., E. (2020). Dynamic Effects of Foreign Portfolio Investment on Economic Growth in Nigeria . Financial Markets, Institutions and Risks, 4(3), 5-12. https://doi.org/10.21272/fmir.4(3).5-12.2020.
- Zainea, N. L., Toma, S.G., Grădinaru, C., Catană, S. (2020). Social Entrepreneurship, a Key Driver to Improve the Quality of Life: The Case of TOMS Company. Business Ethics and Leadership, 4(3), 65-72. https://doi.org/10.21272/bel.4(3).65-72.2020.
- Zolkover, A., Terziev, V. (2020). The Shadow Economy: A Bibliometric Analysis. Business Ethics and Leadership, 4(3), 107-118. https://doi.org/10.21272/bel.4(3).107-118.2020.