An economic model to assess the effectiveness of economic cooperation between Ukraine and international non-government organization
DOI:
https://doi.org/10.15549/jeecar.v8i1.640Keywords:
Ukraine, international non-governmental organizations, investments, socio-economic development, economy, efficiencyAbstract
This study aimed to develop an econometric model for assessing the effectiveness of economic international cooperation between Ukraine and international non-governmental organizations. Based on the cognitive modeling method, the key indicators of the model influencing the socio-economic development of Ukraine were determined. With the cognitive map's help, the links' qualitative characteristics have been identified and argued between the socio-economic indicators of the country's development and the amount of funding attracted from foreign non-governmental organizations. The direction of influence between the indicators of socio-economic development and the volume of investment was determined using economic laws and expert assessments with the involvement of 35 professional experts. The scenario analysis made it possible to analyze the changes in the country's socio-economic development due to changes in the size and structure of investment funds receiving from international non-governmental organizations.
References
Ahmadov, D. (2020). Science, Technology, Engineering, and Math (STEM) effect on GDP in EU countries: Labor force perspective. Journal of Eastern European and Central Asian Research, 7(1), 114-121. https://doi.org/10.15549/jeecar.v7i1.236
Akalpler, E., & Hove, S. (2019). Carbon emissions, energy use, real GDP per capita and trade matrix in the Indian economy-an ARDL approach. Energy, 168, 1081-1093. https://doi.org/10.1016/j.energy.2018.12.012
Ari, I., & Koc, M. (2020). Economic Growth, Public and Private Investment: A Comparative Study of China and the United States. Sustainability, 12(6), 2243. https://doi.org/10.3390/su12062243.
Boudreaux, C.J., Nikolaev, B.N., & Klein, P. (2019). Socio-cognitive traits and entrepreneurship: The moderating role of economic institutions. Journal of Business Venturing, 34, 1, 178-196. https://doi.org/10.1016/j.jbusvent.2018.08.003
Chaudhry, S., Xu, L.D., & Cao, X.F. (2018). Technological entrepreneurship and socio-economic change in BRIC countries. Technological Forecasting and Social Change, 135, 64-65. https://doi.org/10.1016/j.techfore.2018.07.054.
DOBRE. (2021). Program «Decentralization Offering Better Results and Efficiency» (DOBRE). https://donors.decentralization.gov.ua/project/dobre
Dzhumashev, R., & Hailemariam, A. (2021). Foreign aid and the quality of economic institutions. European Journal of Political Economy, 102001. https://doi.org/10.1016/j.ejpoleco.2021.102001
Economides, G., Kalyvitis, S., & Philippopoulos, A. (2008). Does foreign aid distort incentives and hurt growth? Theory and evidence from 75 aid-recipient countries. Public Choice, 134, 463-488. https://doi.org/10.1007/s11127-007-9239-9.
Edward, S.P., & Karamuriro, H.T. (2020). Effects of Foreign Aid Inflow on Economic Growth of Uganda: Autoregressive Distributed Lag Modelling (ARDL). International Journal of Sustainability Management and Information Technologies, 6(2), 36-49 https://doi.org/10.11648/j.ijsmit.20200602.11.
Edwards, S. (2014). Economic Development and the Effectiveness of Foreign Aid: A Historical Perspective. NBER Working Paper, 20685. https://www.nber.org/system/files/working_papers/w20685/w20685.pdf;
Garba I., & Bellingham, R. (2021). Energy poverty: Estimating the impact of solid cooking fuels on GDP per Capita in developing countries - case of sub-sahara Africa. Energy, 221, 119770. https://doi.org/10.1016/j.energy.2021.119770.
Gnangnon, S.K. (2020). Development aid, remittances inflows and wages in the manufacturing sector. J. Soc. Econ. Dev., 22, 278-304. https://doi.org/10.1007/s40847-020-00110-4.
Gnangnon, S.K., & Brun, J.-F. (2018). Is the impact of development aid on government revenue sustainable? An empirical assessment. The Quarterly Review of Economics and Finance, 67, 311-325. https://doi.org/10.1016/j.qref.2017.07.009
Gontar, Z., Marchuk, V., Durman, O., Denkovych, N., & Dudkevych, V. (2020). Exploring the Experience of the World's Leading Countries in Inclusive Growth as Part of the Post-Industrial Economy: Challenges and Perspectives. Postmodern Openings, 11, 2(1), 222-237. https://doi.org/10.18662/po/11.2Sup1/189
Gorelova, G., Pankratova, N., & Borisova, D. (2019). Problems of interregional integration, cognitive modeling. IFAC-PapersOnLine, 52(25), 168-173. https://www.sciencedirect.com/science/article/pii/S2405896319323766.
Government portal. (2021a). International assistance. https://www.kmu.gov.ua/diyalnist/mizhnarodna-dopomoga
Government portal. (2021b). Monitoring of ITA use. https://drive.google.com/drive/folders/1BA1J90zVlD5Kum5aucsTCmWCWwkKhN5s
Government portal. (2021c). List of registered projects with procurement plans. https://www.kmu.gov.ua/diyalnist/mizhnarodna-dopomoga/pereliki-zareyestrovanih-proektiv-z-planami-zakupivel
Harangozó, G., & Zilahy, G. (2015). Cooperation between business and non-governmental organizations to promote sustainable development. Journal of Cleaner Production, 89, 18-31. https://doi.org/10.1016/j.jclepro.2014.10.092
Institute of Political Education. (2021). http:/ipo.org.ua
International Monetary Fund (2020a). World Economic Outlook October 2020. https://www.imf.org/ru/Publications/WEO/Issues/2020/09/30/world-economic-outlook-october-2020.
International Monetary Fund. (2020b, June). Ukraine. Request for Stand-By Arrangement -Press Release; Staff Report; and Statement by the Executive Director for Ukraine. IMF Country Report No. 20/197.
Isaksson, A.-S., & Kotsadam, A. (2018). Chinese aid and local corruption. Journal of Public Economics, 159, 146-159. https://doi.org/10.1016/j.jpubeco.2018.01.002
Ishwor, T. (2020). Foreign Aid: Positive and Negative Impact in Developing Countries. https://doi.org/10.13140/RG.2.2.19155.81448
Konrad Adenauer Foundation. (2020). https://www.kas.de/uk/web/ukraine
Korotin, V., Dolgonosov, M., Popov, V., Korotina, O., & Korolkova, I. (2019). The Ukrainian crisis, economic sanctions, oil shock and commodity currency: Analysis based on EMD approach. Research in International Business and Finance, 48, 156-168. https://doi.org/10.1016/j.ribaf.2018.12.012
Latif, K.F., & Williams, N. (2017). Team effectiveness in Non-Governmental Organizations (NGOs) projects. Evaluation and Program Planning, 64, 20-32. https://doi.org/10.1016/j.evalprogplan.2017.05.004
Maruta, A.A., Banerjee, R., & Cavoli, T. (2020). Foreign aid, institutional quality and economic growth: Evidence from the developing world. Economic Modelling, 89, 444-463. https://doi.org/10.1016/j.econmod.2019.11.008
Megits, N., Neskorodieva, I., & Schuster, J. (2020). Impact assessment of the COVID19 on trade between Eastern Europe and China. Journal of Eastern European and Central Asian Research (JEECAR), 7(3), 385-399. https://doi.org/10.15549/jeecar.v7i3.579
Meyer, D. F. (2019). A quantitative assessment of the impact of government activities on the economy of Poland. Journal of Eastern European and Central Asian Research, 6(2), 220-233. https://doi.org/10.15549/jeecar.v6i2.338
Ministry of Economic Development and Trade of Ukraine. (2019). Information on international technical assistance provided to Ukraine, based on the Ministry of Economic Development project monitoring results for 2018.https://www.me.gov.ua/?lang=en-GB
Onegina, V., Megits, N., Antoshchenkova, V., & Boblovskyi, O. (2020). Outcome of capital investment on labor productivity in agriculture sector of Ukraine. Journal of Eastern European and Central Asian Research (JEECAR), 7(1), 12-25. https://doi.org/10.15549/jeecar.v7i1.355
On approval of the Forecast of economic and social development of Ukraine for 2021-2023. (2020). Resolution of the Cabinet of Ministers of 29.07.2020 ? 671. https://zakon.rada.gov.ua/laws/show/671-2020-%D0%BF#Text.
Organisation for Economic Co-operation and Development. (2020, December 11). The COVID-19 Crisis in Ukraine. https://www.oecd.org/eurasia/competitiveness-programme/eastern-partners/COVID-19-CRISIS-IN-UKRAINE.pdf
Osiobe, E.U., Osiobe, S.A., & Olushola, P.A. (2019). The Role of Non-Governmental Organizations in Community Economic Development: Using a System Dynamic Approach. Journal of Economics and Sustainable Development, 10(20), 1-11.
Park, J.D. (2019) Assessing the Role of Foreign Aid, Donors and Recipients. Re-Inventing Africa's Development. https://doi.org/10.1007/978-3-030-03946-2_2
Pham, N.-S., & Pham, T.K.C. (2020). Effects of foreign aid on the recipient country’s economic growth. Journal of Mathematical Economics, 86, 52-68. https://doi.org/10.1016/j.jmateco.2019.11.004
Pomaza-Ponomarenko, A.L., Hren, L.M., Durman, O.L., Bondarchuk, N.V., & Vozniuk, E.V. (2020). Problematic Aspects of State Policy Modernization in the Conditions of Digitalization. International Journal of Management, 11(6), 508-515. https://doi.org/10.34218/IJM.11.6.2020.044
National Bank of Ukraine (2020, October 29). The Economy Will Grow in 2021 and Will Fully Recoup Its Losses from the Coronavirus Crisis in 2022 – NBU Inflation Report. https://bank.gov.ua/en/news/all/ekonomika-zrostatime-u-2021-rotsi-i-povnistyu-nadolujit-vtrati-vid-koronakrizi-u-2022-rotsi--inflyatsiyniy-zvit-nbu
President of Ukraine. (2020, December 11). Ukraine is open to the world as an investment harbor in the time of change - Volodymyr Zelenskyy. https://www.president.gov.ua/en/news/ukrayina-vidkrita-dlya-svitu-yak-investicijna-gavan-u-chas-z-65513
Qureshi, M.I., Qayyum, S., Nassani, A.A., Aldakhil, A.M., Abro, M.M.Q., & Zaman, K. (2019). Management of various socio-economic factors under the United Nations sustainable development agenda. Resources Policy, 64, 101515. https://doi.org/10.1016/j.resourpol.2019.101515
Reverchuk, S., Skomorovych, I., & Sauers, D. A. (2016). Monetary Systems of Ukraine: Past and Present. Journal of Eastern European and Central Asian Research, 3(2), 14. https://doi.org/10.15549/jeecar.v3i2.134.
Rigolon, A., & Gibson, S. (2021). The role of non-governmental organizations in achieving environmental justice for green and blue spaces. Landscape and Urban Planning, 205, 103970. https://doi.org/10.1016/j.landurbplan.2020.103970
Soreg, K., & Bermudez-Gonzalez, G. (2021). Measuring the Socioeconomic Development of Selected Balkan Countries and Hungary: A Comparative Analysis for Sustainable Growth. Sustainability, 13(2), 736. https://doi.org/10.3390/su13020736.
State Statistics Committee of Ukraine. (2020). Retrieved January 5, 2021, from: http://www.ukrstat.gov.ua/operativ/oper_new.html.
Teichmann, F., Falker, M.-C., & Sergi, B.S. (2020). Extractive industries, corruption and potential solutions. The case of Ukraine. Resources Policy, 69, 101844. https://doi.org/10.1016/j.resourpol.2020.101844
The World Bank. (2021). The World Bank In Ukraine. Overview. https://www.worldbank.org/en/country/ukraine/overview .
U-LEAD. (2021). U-LEAD with Europe. https://donors.decentralization.gov.ua/project/u-lead.
United Nations. (1992, June 3-14). Report of the United Nations conference on environment and development. https://www.un.org/en/development/desa/population/migration/ generalassembly/docs/globalcompact/A_CONF.151_26_Vol.I_Declaration.pdf.
Yiew, T. H., & Lau, E. (2018). Does foreign aid contributes to or impeded economic growth. Journal of International Studies, 11(3), 21-30. https://doi.org/10.14254/2071- 8330.2018/11-3/2.
Akalpler, E., & Hove, S. (2019). Carbon emissions, energy use, real GDP per capita and trade matrix in the Indian economy-an ARDL approach. Energy, 168, 1081-1093. https://doi.org/10.1016/j.energy.2018.12.012
Ari, I., & Koc, M. (2020). Economic Growth, Public and Private Investment: A Comparative Study of China and the United States. Sustainability, 12(6), 2243. https://doi.org/10.3390/su12062243.
Boudreaux, C.J., Nikolaev, B.N., & Klein, P. (2019). Socio-cognitive traits and entrepreneurship: The moderating role of economic institutions. Journal of Business Venturing, 34, 1, 178-196. https://doi.org/10.1016/j.jbusvent.2018.08.003
Chaudhry, S., Xu, L.D., & Cao, X.F. (2018). Technological entrepreneurship and socio-economic change in BRIC countries. Technological Forecasting and Social Change, 135, 64-65. https://doi.org/10.1016/j.techfore.2018.07.054.
DOBRE. (2021). Program «Decentralization Offering Better Results and Efficiency» (DOBRE). https://donors.decentralization.gov.ua/project/dobre
Dzhumashev, R., & Hailemariam, A. (2021). Foreign aid and the quality of economic institutions. European Journal of Political Economy, 102001. https://doi.org/10.1016/j.ejpoleco.2021.102001
Economides, G., Kalyvitis, S., & Philippopoulos, A. (2008). Does foreign aid distort incentives and hurt growth? Theory and evidence from 75 aid-recipient countries. Public Choice, 134, 463-488. https://doi.org/10.1007/s11127-007-9239-9.
Edward, S.P., & Karamuriro, H.T. (2020). Effects of Foreign Aid Inflow on Economic Growth of Uganda: Autoregressive Distributed Lag Modelling (ARDL). International Journal of Sustainability Management and Information Technologies, 6(2), 36-49 https://doi.org/10.11648/j.ijsmit.20200602.11.
Edwards, S. (2014). Economic Development and the Effectiveness of Foreign Aid: A Historical Perspective. NBER Working Paper, 20685. https://www.nber.org/system/files/working_papers/w20685/w20685.pdf;
Garba I., & Bellingham, R. (2021). Energy poverty: Estimating the impact of solid cooking fuels on GDP per Capita in developing countries - case of sub-sahara Africa. Energy, 221, 119770. https://doi.org/10.1016/j.energy.2021.119770.
Gnangnon, S.K. (2020). Development aid, remittances inflows and wages in the manufacturing sector. J. Soc. Econ. Dev., 22, 278-304. https://doi.org/10.1007/s40847-020-00110-4.
Gnangnon, S.K., & Brun, J.-F. (2018). Is the impact of development aid on government revenue sustainable? An empirical assessment. The Quarterly Review of Economics and Finance, 67, 311-325. https://doi.org/10.1016/j.qref.2017.07.009
Gontar, Z., Marchuk, V., Durman, O., Denkovych, N., & Dudkevych, V. (2020). Exploring the Experience of the World's Leading Countries in Inclusive Growth as Part of the Post-Industrial Economy: Challenges and Perspectives. Postmodern Openings, 11, 2(1), 222-237. https://doi.org/10.18662/po/11.2Sup1/189
Gorelova, G., Pankratova, N., & Borisova, D. (2019). Problems of interregional integration, cognitive modeling. IFAC-PapersOnLine, 52(25), 168-173. https://www.sciencedirect.com/science/article/pii/S2405896319323766.
Government portal. (2021a). International assistance. https://www.kmu.gov.ua/diyalnist/mizhnarodna-dopomoga
Government portal. (2021b). Monitoring of ITA use. https://drive.google.com/drive/folders/1BA1J90zVlD5Kum5aucsTCmWCWwkKhN5s
Government portal. (2021c). List of registered projects with procurement plans. https://www.kmu.gov.ua/diyalnist/mizhnarodna-dopomoga/pereliki-zareyestrovanih-proektiv-z-planami-zakupivel
Harangozó, G., & Zilahy, G. (2015). Cooperation between business and non-governmental organizations to promote sustainable development. Journal of Cleaner Production, 89, 18-31. https://doi.org/10.1016/j.jclepro.2014.10.092
Institute of Political Education. (2021). http:/ipo.org.ua
International Monetary Fund (2020a). World Economic Outlook October 2020. https://www.imf.org/ru/Publications/WEO/Issues/2020/09/30/world-economic-outlook-october-2020.
International Monetary Fund. (2020b, June). Ukraine. Request for Stand-By Arrangement -Press Release; Staff Report; and Statement by the Executive Director for Ukraine. IMF Country Report No. 20/197.
Isaksson, A.-S., & Kotsadam, A. (2018). Chinese aid and local corruption. Journal of Public Economics, 159, 146-159. https://doi.org/10.1016/j.jpubeco.2018.01.002
Ishwor, T. (2020). Foreign Aid: Positive and Negative Impact in Developing Countries. https://doi.org/10.13140/RG.2.2.19155.81448
Konrad Adenauer Foundation. (2020). https://www.kas.de/uk/web/ukraine
Korotin, V., Dolgonosov, M., Popov, V., Korotina, O., & Korolkova, I. (2019). The Ukrainian crisis, economic sanctions, oil shock and commodity currency: Analysis based on EMD approach. Research in International Business and Finance, 48, 156-168. https://doi.org/10.1016/j.ribaf.2018.12.012
Latif, K.F., & Williams, N. (2017). Team effectiveness in Non-Governmental Organizations (NGOs) projects. Evaluation and Program Planning, 64, 20-32. https://doi.org/10.1016/j.evalprogplan.2017.05.004
Maruta, A.A., Banerjee, R., & Cavoli, T. (2020). Foreign aid, institutional quality and economic growth: Evidence from the developing world. Economic Modelling, 89, 444-463. https://doi.org/10.1016/j.econmod.2019.11.008
Megits, N., Neskorodieva, I., & Schuster, J. (2020). Impact assessment of the COVID19 on trade between Eastern Europe and China. Journal of Eastern European and Central Asian Research (JEECAR), 7(3), 385-399. https://doi.org/10.15549/jeecar.v7i3.579
Meyer, D. F. (2019). A quantitative assessment of the impact of government activities on the economy of Poland. Journal of Eastern European and Central Asian Research, 6(2), 220-233. https://doi.org/10.15549/jeecar.v6i2.338
Ministry of Economic Development and Trade of Ukraine. (2019). Information on international technical assistance provided to Ukraine, based on the Ministry of Economic Development project monitoring results for 2018.https://www.me.gov.ua/?lang=en-GB
Onegina, V., Megits, N., Antoshchenkova, V., & Boblovskyi, O. (2020). Outcome of capital investment on labor productivity in agriculture sector of Ukraine. Journal of Eastern European and Central Asian Research (JEECAR), 7(1), 12-25. https://doi.org/10.15549/jeecar.v7i1.355
On approval of the Forecast of economic and social development of Ukraine for 2021-2023. (2020). Resolution of the Cabinet of Ministers of 29.07.2020 ? 671. https://zakon.rada.gov.ua/laws/show/671-2020-%D0%BF#Text.
Organisation for Economic Co-operation and Development. (2020, December 11). The COVID-19 Crisis in Ukraine. https://www.oecd.org/eurasia/competitiveness-programme/eastern-partners/COVID-19-CRISIS-IN-UKRAINE.pdf
Osiobe, E.U., Osiobe, S.A., & Olushola, P.A. (2019). The Role of Non-Governmental Organizations in Community Economic Development: Using a System Dynamic Approach. Journal of Economics and Sustainable Development, 10(20), 1-11.
Park, J.D. (2019) Assessing the Role of Foreign Aid, Donors and Recipients. Re-Inventing Africa's Development. https://doi.org/10.1007/978-3-030-03946-2_2
Pham, N.-S., & Pham, T.K.C. (2020). Effects of foreign aid on the recipient country’s economic growth. Journal of Mathematical Economics, 86, 52-68. https://doi.org/10.1016/j.jmateco.2019.11.004
Pomaza-Ponomarenko, A.L., Hren, L.M., Durman, O.L., Bondarchuk, N.V., & Vozniuk, E.V. (2020). Problematic Aspects of State Policy Modernization in the Conditions of Digitalization. International Journal of Management, 11(6), 508-515. https://doi.org/10.34218/IJM.11.6.2020.044
National Bank of Ukraine (2020, October 29). The Economy Will Grow in 2021 and Will Fully Recoup Its Losses from the Coronavirus Crisis in 2022 – NBU Inflation Report. https://bank.gov.ua/en/news/all/ekonomika-zrostatime-u-2021-rotsi-i-povnistyu-nadolujit-vtrati-vid-koronakrizi-u-2022-rotsi--inflyatsiyniy-zvit-nbu
President of Ukraine. (2020, December 11). Ukraine is open to the world as an investment harbor in the time of change - Volodymyr Zelenskyy. https://www.president.gov.ua/en/news/ukrayina-vidkrita-dlya-svitu-yak-investicijna-gavan-u-chas-z-65513
Qureshi, M.I., Qayyum, S., Nassani, A.A., Aldakhil, A.M., Abro, M.M.Q., & Zaman, K. (2019). Management of various socio-economic factors under the United Nations sustainable development agenda. Resources Policy, 64, 101515. https://doi.org/10.1016/j.resourpol.2019.101515
Reverchuk, S., Skomorovych, I., & Sauers, D. A. (2016). Monetary Systems of Ukraine: Past and Present. Journal of Eastern European and Central Asian Research, 3(2), 14. https://doi.org/10.15549/jeecar.v3i2.134.
Rigolon, A., & Gibson, S. (2021). The role of non-governmental organizations in achieving environmental justice for green and blue spaces. Landscape and Urban Planning, 205, 103970. https://doi.org/10.1016/j.landurbplan.2020.103970
Soreg, K., & Bermudez-Gonzalez, G. (2021). Measuring the Socioeconomic Development of Selected Balkan Countries and Hungary: A Comparative Analysis for Sustainable Growth. Sustainability, 13(2), 736. https://doi.org/10.3390/su13020736.
State Statistics Committee of Ukraine. (2020). Retrieved January 5, 2021, from: http://www.ukrstat.gov.ua/operativ/oper_new.html.
Teichmann, F., Falker, M.-C., & Sergi, B.S. (2020). Extractive industries, corruption and potential solutions. The case of Ukraine. Resources Policy, 69, 101844. https://doi.org/10.1016/j.resourpol.2020.101844
The World Bank. (2021). The World Bank In Ukraine. Overview. https://www.worldbank.org/en/country/ukraine/overview .
U-LEAD. (2021). U-LEAD with Europe. https://donors.decentralization.gov.ua/project/u-lead.
United Nations. (1992, June 3-14). Report of the United Nations conference on environment and development. https://www.un.org/en/development/desa/population/migration/ generalassembly/docs/globalcompact/A_CONF.151_26_Vol.I_Declaration.pdf.
Yiew, T. H., & Lau, E. (2018). Does foreign aid contributes to or impeded economic growth. Journal of International Studies, 11(3), 21-30. https://doi.org/10.14254/2071- 8330.2018/11-3/2.
Downloads
Published
2021-03-20
How to Cite
Durman, O., Durman, M., Topalova, E., Grytsak, L., & Zhiliaieva, O. (2021). An economic model to assess the effectiveness of economic cooperation between Ukraine and international non-government organization. Journal of Eastern European and Central Asian Research (JEECAR), 8(1), 62–80. https://doi.org/10.15549/jeecar.v8i1.640
Issue
Section
Manuscripts
License
The JEECAR journal allows the author(s) to hold the copyright and publishing rights of their own manuscript without restrictions.
This journal applies the Creative Attribution Common License to works we publish, and allows reuse and remixing of its content, in accordance with a CC-BY 4.0 license.
Authors are free to: Share — copy and redistribute the material in any medium or format and Adapt — remix, transform, and build upon the material for any purpose, even commercially.
Under the following terms: Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
No additional restrictions — The author may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
The JEECAR Journal is committed to the editorial principles of all aspects of publication ethics and publication malpractice as assigned by the Committee on Public Ethics.
