Macroeconomic dynamics in Ukrainian middle class formation

Yana Salo
Lecturer of Personnel Management and Labor Economics Department, Odessa National Economic University, Ukraine, e-mail: saloiana35@gmail.com, ORCID ID: https://orcid.org/0000-0003-1066-783X

Cite this article:

Salo, Ya. (2018). Macroeconomic dynamics in Ukrainian middle class formation. Ed.: M. Zveryakov (ed.-in-ch.) and others [Makroekonomichna dynamika u formuvanni Ukrainskoho serednioho klasu; za red.: М. I. Zvieriakova (gol. red.) ta in.], Socio-economic research bulletin, Vìsnik socìal’no-ekonomìčnih doslìdžen’ (ISSN 2313-4569), Odessa National Economic University, Odessa, No. 4 (68), pp. 44–52.

Abstract

The article considers of macroeconomic indicators dynamics that influence on the middle class formation. Analysis was performed in sufficiently deep dynamics, which allows us to form a representation about the middle class conditions formation, his becoming and directions of perspective development. The above dynamics for fairly a long time period displays almost the whole transformations picture, which appear in the macroeconomy of Ukraine. Selected statistical data depending of the population income from GDP in national currency and in US dollars are presented for conduct such an analysis. An assessment of such macro-indicators as inflation, the level of employment and unemployment, external public debt, etc. is given. Unfortunately, the considered macroeconomic dynamics in the main system-forming middle class indicators cannot be recognized as steadily increasing. But she is allows us to assert with sufficient certainty about the dialectical presence of economic prerequisites for highlighting of the population proportion, which can be attributed to the middle class. Great influence on the population income, and consequently, the middle class, is unemployment, which reflects the state of country’s socio-economic development, the availability of jobs, the quality of educational training, and others. The number of middle class in the country is directly related with migration processes. The specificity of the Ukrainian migration lies in the fact that it has become a characteristic feature of the life way for a significant part of population. The labor migration increasing is accompanied by a certain reorientation of its flows from the traditional east to the west direction. It is emphasized that a stable socio-economic growth of the country is the main factor in the middle class share increasing. The middle class formation is considered as an important criterion for the reforms effectiveness that are being carried out in the country today.

Keywords

middle class; economic growth; employment rate; unemployment rate; income.

JEL classification: J210; DOI: https://doi.org/10.33987/vsed.4(68).2018.44-52

UD classification: 316.343:330.3

References

1. State statistics service of Ukraine: site [Derzhavna sluzhba statystyky Ukrainy: sait]. URL: http://www.ukrstat.gov.ua [in Ukrainian]
2. The Maastricht treaty [Maastrykhtskyi dohovir], available at: https://uk.wikipedia.org/wiki/Маастрихтський_договір [in Ukrainian]
3. Poznyak, O. V. (2016). External migration of Ukrainian citizens during an independence years [Zovnishnia mihratsiia hromadian Ukrainy za roky nezalezhnosti], Ahora, No. 17, s. 49–54 [in Ukrainian]
4. Financial income research, which related with migration and its influence on development in Ukraine «Migration as a development factor in Ukraine» (2016) [Doslidzhennia finansovykh nadkhodzhen, poviazanykh z mihratsiieiu ta yikhnoho vplyvu na rozvytok v Ukraini «Mihratsiia yak chynnyk rozvytku v Ukraini»], available at: http://www.iom.org.ua/sites/default/files/mom_migraciya_yak_chynnyk_rozvytku_v_ukrayini.pdf [in Ukrainian]
5. Employment rate in the European Union countries and Ukraine [Riven zainiatosti naselennia u krainakh Yevropeiskoho Soiuzu ta Ukraini], available at: http://edclub.com.ua/analityka/riven-zaynyatosti-naselennya-u-krayinah-yevropeyskogo-soyuzu-ta-ukrayini [in Ukrainian]
6. Migration in Ukraine: facts and figures (2016) [Mihratsiia v Ukraini: fakty i tsyfry], available at: http://iom.org.ua/sites/default/files/ff_ukr_21_10_press.pdf [in Ukrainian]
7. Research on migration and trafficking in human beings: Ukraine (2015) [Doslidzhennia z pytan mihratsii ta torhivli liudmy: Ukraina], available at: http://iom.org.ua/sites/default/files/pres_kit_gfk_iom2015_ua_fin_3_2.pdf [in Ukrainian]
8. Department of statistics and reporting, statistics department of NBU external sector «Overview of private money transfers in Ukraine in 2016» [Departament statystyky ta zvitnosti, upravlinnia statystyky zovnishnoho sektoru NBU «Ohliad pryvatnykh hroshovykh perekaziv v Ukrainu v 2016 rotsi»], available at: https://bank.gov.ua/doccatalog/document?id=19208358 [in Ukrainian]
9. The external debt of Ukraine: announced impressive figures [Vneshniy dolg Ukrainy: ozvucheny vnushitelnye tsifry], available at: https://politeka.net/news/economics/472210-vneshnij-dolg-ukrainy-ozvucheny-vnushitelnye-tsifry [in Russian]
10. External public debt of Ukraine [Vneshniy gosudarstvennyy dolg Ukrainy], available at: http://index.minfin.com.ua/index/debt/gov [in Russian]