Flows of funds of restructurings and the necessity of their public administration

Abstract

Introduction. Ukrainian economy needs urgent structural reforms. While examining the overflow of capital between sectors and branches of economy, the best definition to be used is “flows of funds”. The mechanism of forming, movement, receiving the results of flows of funds during the structural changes and the public administration of these processes are very actuall at the moment and are not enough investigated.

Purpose. The purpose of the article is the characteristics of flows of funds, the definition of their role in structural economic transformations and the necessity of public administrating of influence on flows of funds of restructural changes.

Methodology. Abstract and logical method, dialectical method, graphical methods, method of system analysis and theoretical generalization have become the methodological basis of the research.

Results. Restructurings in economy have to occur in terms of public structural administration and strictly determined priorities in conditions of systematic crisis. Among different approaches to the structuring of economy, the central place belongs to the branch structure. Its dynamic changes are accompanied by the movement of flow of financial resources. In the article the financial flows of structural reforms (restructuring) are determined as purposeful movement of financial resources, sufficiency, traffic and distribution areas of which may cause qualitative and quantitative changes in the components of the economic both due to the infusion into economic circulation and withdrawal from it.

In the context of structural reforms, regulating public impact on flows of financial resources aims targeting the economic subjects (enterprises, banks, stock market etc) at achieving the goals and priorities, predetermined by structural policy.