Effects of the state regulation of economy in conditions of the European integration of Ukraine

Abstract

Background. In modern conditions of globalization and European integration it is important to ensure high positive effects of state regulation of the national economy. The central issue that became imminent in this area is how to make the system of state regulation of the economy really effective and really aimed at ensuring economic growth. So far, Ukraine has failed to form a strategic, integrated and interconnected mechanism of state regulation of the national economy, to develop a strategy and tactics of socio-economic transformations. In the context of modern European integration, the positive effects of state regulation of the economy will depend to a large extent on the scientific vision of the pressing social and economic problems in Ukraine.
Analysis of recent research and publications. The scientific works of many foreign and domestic economists are devoted to essential characteristics and peculiarities of state regulation of the economy and its effects, as well as the problem of regulation of the national economy of Ukraine in the conditions of European integration. However, the issue of achieving the positive effects of state regulation in the context of the expansion of Euro-integration processes is not sufficiently disclosed.
The aim of the article is theoretical study of the effects of state regulation of the national economy and the domestic market on the basis of assessment of the current level and prospects of Ukraine’s integration with the EU.
Materials and methods. The information base of the study consists of scientific works of domestic and foreign scientists on the problem under consideration. The article uses the statistics of the World Bank, the World Economic Forum and the State Statistics Service of Ukraine. The study uses systematic and structural-functional approaches, methods of qualitative and quantitative analysis, the unity of historical and logical, theoretical abstraction, generalization.
The results of the research. The effects of state regulation of the economy in Ukraine will increasingly be determined by the prospects for the development of European integration processes. Under the conditions of a real free trade zone (FTA or DCFTA), the state begins to build a national regulatory system in accordance with European integration requirements. It is about trade liberalization, free labor migration, convertibility of the national currency, removal of restrictions on the transfer of capital, etc. In the context of deepening of the European integration processes, achieving the positive effects of state regulation of the economy is a matter of the level of national security and ensuring economic sovereignty. For Ukraine, an important aspect of European integration is the interconnection of the system of state regulation and the realization of national interests. In order to realize national interests, it is necessary to implement effective state economic policy by relying on domestic production, active implementation of socio-economic reforms, improving the efficiency of the business environment and to protect the domestic market from global flows of speculative resources, low-quality goods and services. Proper effects of state regulation of the national economy provide the necessary level of efficiency of public administration. The mechanism of public administration will be effective provided it is based on the scientific understanding of management and regulatory processes within the bounds of existing institutions.
Conclusion. Positive effects of state regulation of the economy will be achieved when the national interests of Ukraine are fully taken into account and realized. Ignoring national interests directly or indirectly contributes to the socio-economic instability of the country and the limitation of economic growth opportunities. For Ukraine, the urgent needs of economic growth form the main challenge that will determine our socio-economic development in the twenty-first century and which will directly depend on the dynamics of European integration processes. European integration for Ukraine is a powerful stimulus for economic growth, activation of production and the domestic market. Despite the lack of status of a candidate country or the officially recognized prospect of EU membership, Ukraine needs to adapt as soon as possible to the socio-economic conditions of the EU, which will make it possible to really apply for membership in the European Union.