Financial market of Ukraine in the context of global competitiveness

Abstract

Introduction. The low level of global competitiveness in Ukraine is largely the result of underdeveloped financial market. The domestic financial market is partly integrated into the international financial space. This market should be considered in the context of globalization of economic processes and global competitiveness index. Financial globalization offers for all the subjects of market of capitals a list of additional chances. Simultaneously, the additional risks, which are associated with possible external challenges, should also be taken into account. It is necessary to conduct a thorough analysis of the strengths and weaknesses of the domestic financial market position from the perspective of the impact of globalization. It must be done in order to use the opportunities to neutralize the possible risks.

Goal. The purpose of this article is to carry out a comparative analysis of the financial market and its separate segments in the national and global dimensions and to justify on this basis the conclusions and recommendations as for financial market model that could increase the competitiveness of Ukraine's economy.

The method (methodology). The following methods have been used in this research: method of analysis and synthesis, method of comparison and synthesis; method of empirical studies and factor analysis; method of system approach and strategy.

Results. The analysis of the causes of low global competitiveness of the domestic financial market has been carried out. The continental model of funding with elements of explicit and implicit state support of banking system in Ukraine has been shown. This model is typical for countries with transitive economy. The structure of the stock market in Ukraine is deformed due to the presence of critical high proportion of government bonds on it. The amount of investments in corporate securities has significantly reduced because of the crowding-out effect. The yield of government securities should be significantly reduced in order to neutralize this effect.