The impact of financial market transformation on the social and ecological sphere

Hariaha Lesia
Candidate of Sciences (Economics), Associate Professor of the Department of Finance and Accounting, Cherkasy Institute of the University of Banking, Cherkasy, Odessa, E-mail:garyaga@ukr.net

Cite this article:

Hariaha L. (2021) Insurance as a component of the corporate social responsibility system. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Vpliv transformaciyi finansovogo rinku na socialno-ekologichnu sferu; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 11-12 (288-289), pp. 20-26.

Abstract

The purpose of this article is study of the impact of financial market transformation on the socio-environmental sphere. The methods used to conduct the research are the correlation analysis. Results of the article. The article analyzes the impact of financial market transformation processes on the socio-environmental sphere in the context of the concept of sustainable development. To study the transformation of the financial market, indicators were selected that characterize this process from different angles: the ratio of financial corporations' assets to GDP; the ratio of assets of other deposit-taking corporations to GDP; banking market concentration indicator; the ratio of bank loans to GDP; capitalization of the securities market to GDP; the ratio of government bonds to GDP; the growth rate of the monetary aggregate M2; the ratio of gross insurance premiums to GDP. Examining the impact of financial market transformation on the socio-environmental sphere in Ukraine for the period 2002- 2020, we found the following: financial market transformation indicators and social indicators have mostly low and medium levels of correlation; financial market transformation indicators and environmental indicators have almost no correlation. Regarding the social sphere, the processes of transformation of the banking and insurance sectors of the financial market have the greatest impact on its indicators. However, there is virtually no correlation between financial market transformation indicators and selected environmental indicators, with the exception of the average level of the ratio of gross insurance premiums to GDP and emissions of pollutants into the atmosphere. Further research on the impact of financial market transformation processes on the socioenvironmental sphere will reveal the strength and nature of this relationship, which is an important characteristic for understanding the relevant trends in the implementation of the concept of sustainable development. The practical importance of this work lies in the establishing the relationship between indicators of financial market transformation and indicators of the socio-environmental sphere.

Keywords

financial market, financial market transformation, social sphere, ecological sphere.

JEL classification: G100, І300, Q500

UD classification: 336.7:504.03:330.59

References

1. Baranova, V. V. (2020). Integration interaction in the financial market in ensuring the economic security of the national economy: methodology, organization and practice (D. Sc.Thesis). Economics and management of the national economy. Zaporozhye: Classical private university [In Ukrainian].
2. Baranovsky, O. I. (Ed.) (2018). Estimation of quality of transformation processes in the financial sector of the national economy. Kyiv: SHEI «University of Banking» [In Ukrainian].
3. Kvasnytska, R. S. (2015). Investment potential of financial market institutions of Ukraine. Khmelnytsky: PE «Monuscript» [In Ukrainian].
4. Kovalenko, V. V. (2017). Financial market of Ukraine: essential and functional aspects. Ekonomichnyj forum, 2, 286-295 [In Ukrainian].
5. Plastun, O. L. (2014). Forecasting of financial markets: modern concepts and new approaches: a monograph. Sumy: SHEI «UABS NBU» [In Ukrainian].
6. Rudenko, M. V. (2017). Theoretical aspects of the interaction of financial and real sectors of the economy. Visnyk Universytetu bankivs'koi spravy, 1 (28), 21-29 [In Ukrainian].
7. Sapachuk, Yu. M. (2012). Formation of stabilization mechanisms of the modern financial market (Abstract of Ph.D. Thesis). Еconomic theory and history of economic thought. Kyiv: Taras Shevchenko National University of Kyiv [In Ukrainian].
8. Shkolnyk, I. O. (2008). Financial market of Ukraine: current status and development strategy. Sumy: GDP «Dream-1» LTD, UABS NBU [In Ukrainian].
9. Кlein, M. W. & Оlivei, G. P. (2008). Capital Account Liberalization, Financial Depth, and Economic Growth. Journal of International Money and Finance, 27 (6), 861-875.
10. Mirkin, Ya. M., Salin V. M. & Dobashina I. V. (2015). Economic and statistical research of the financial depth of the economy. Vestnik NGUEU, 4, 24-29 [In Russian].
11. Li, T., Zhong, J. & Xu M. (2020). Does the Credit Cycle Have an Impact on Happiness? International Journal of Environmental Research and Public Health, 17(1). DOI: 10.3390/ ijerph17010183.
12. Statistics of the financial sector. National Bank of Ukraine (2021). Official web-site. Retrieved from https://bank.gov.ua/ua/statistic/sector-financial [In Ukrainian].
13. Statistical information. Demographic and social statistics. Economic statistics. State Statistics Service of Ukraine (2021). Official web-site. Retrieved from http://www.ukrstat.gov.ua/ operativ/oper_new.html [In Ukrainian].
14. Environmental performance Index (2021). Retrieved from https://epi.yale.edu/epiresults/2020/country/ukr.