TRIGGER-VECTOR MODEL OF INDIVIDUAL INVESTORS' BEHAVIOUR IN THE DOMESTICі GOVERNMENT BORROWING MARKET

The increasing expenditures on defence, social protection, and economic recovery in Ukraine amidst a growing state budget deficit necessitate additional funding through the development of the domestic government borrowing market and the engagement of individual investors' funds. These investors can be both individuals, including labour migrants, and legal entities, particularly representatives of small and medium enterprises, both residents and non-residents. The article conducts impact modelling the impact of government bond issuance on the financial stability of the state, and methods to enhance the effectiveness of state financial policy in realizing the financial potential of individual investors. An analysis of macroeconomic indicators reveals that the available funds held by individuals and legal entities are not fully utilized within the state's financial system, which hampers macroeconomic stability and, consequently, affects Ukraine's defence capabilities. The paper substantiates the appropriateness of individual investors allocating their funds to domestic government bonds, particularly military bonds. The research aims to develop a trigger-vector model of individual investor behaviour in the domestic government borrowing market and to justify its use for attracting additional funds to finance victory and post-war economic recovery in Ukraine. This model is centred around an investment trigger that allows individual investors to make informed decisions based on an assessment of the advantages and risks associated with investing in military bonds. To evaluate the impact of quantitative and qualitative factors on investment decisions, particularly in military bonds, the trigger model is supplemented with a vector component

THE FINANCIAL MARKET OF UKRAINE AND THE ROLE OF FOREIGN DIRECT INVESTMENT

Abstract. The main objective of this paper is to investigate the characteristics of the institutional structure of the Ukrainian financial market and to analyze the impact of foreign direct investment on it. The following methods of research were used by the authors: economic-statistical, tabular, and comparative (in empirical analysis; to make comparisons across different types of financial institutions, to investigate and evaluate the volumes of foreign direct investment by countries and their relation to the size of the domestic financial sector); systematic and logical (determining and analyzing the scope of the positive and negative effects of foreign investment on the financial market of Ukraine).The conclusions are as the follows: the structure of the financial market of Ukraine is rather nonbalanced and fragile; most foreign investors have changed their strategies on the Ukrainian financial market from aggressive to share-keeping; more attention should be paid to the development of the constructive policy concerning FDI to ensure the stability and even the development of the domestic financial market as well as to raise its investment attractiveness.Key words: financial market, commercial bank, non-bank financial institutions (NBFIs), foreign investment, investment attractivenes

THE IMPORTANCE OF OPENNESS AND TRANSPARENCY IN THE BUDGET PROCESS IN THE DEFENSE AND SECURITY SECTOR OF UKRAINE

The purpose of this paper is to describe and analyze the issues of openness and transparency of the budgeting process in the defense and security sector in Ukraine, which results in effective spending of budgets.After Russia started a full-scale war against Ukraine, the international community is providing Ukraine with numerous financial support packages and ammunition. Therefore, one of the most important issues is strengthening the democratic control over the budget process in the defense and security sector of Ukraine, taking into account the new principles of information openness and its classification as a state secret. Here, the need to develop standards for transparent budgeting and the introduction of an open indicative system for monitoring and evaluating the budget process in the defense and security sector is particularly relevant.The article provides an empirical description, uses data obtained from expert discussions and multidimensional evaluation approaches on openness and transparency of the budget process in the defense and security sector to enhance the effectiveness of military budget spending.The paper develops conceptual approaches to ensuring the efficient use of budgetary resources in the defense and security sector by generalizing the practical implementation of the open and transparent budgeting principles, development of effective mechanisms for budget oversight, and compliance with standards of public accountability.The paper focuses on the need for the implementation of budget transparency standards referring to the priorities of the Military Security Strategy of Ukraine with particular attention to the issues of openness and transparency of financial reporting at budgetary institutions. The study proves the prospects for the introduction of transparent budgeting standards in the defense and security sector, which is a fundamentally new approach able to strengthen corruption prevention and, in combination with other hybrid defense tactics, the military provision.The study is performed under the project “Openness and transparency of budgeting in the defense and security sector of Ukraine”, supported by the Ministry of Education and Science of Ukraine.</jats:p