ASSESSMENT OF THE IMPACT OF DOLLARIZATION ON THE PRICE DYNAMICS OF MACHINE-BUILDING ENTERPRISES IN UKRAINE
Journal Title: Проблеми системного підходу в економіці - Year 2018, Vol 6, Issue 68
Abstract
The article defines the degree of dependence of the machine-building industry of Ukraine on the processes of dollarization of the world economy through the use of the effect of transferring the dynamics of changes in exchange rates to the price dynamics in the machine-building industry. It is proved that there is a close relationship between changes in the exchange rate and prices for products of machine-building enterprises. Using the calculation of the autocorrelation coefficient between the indices of price dynamics indices, a low level of links between the exchange rate growth and the change in the Paasche index was proved. Revealed a high degree of connection between the Paasche index on export operations and the index of currency exchange rates. An approach is proposed to determine the sensitivity of domestic prices for the products of engineering enterprises to changes in the exchange rate through modified elasticity coefficients. Under the effect of transferring the exchange rate to domestic prices of enterprises we will understand the degree of sensitivity of the price of 1% change in the exchange rate. If there is a complete transfer of the exchange rate to domestic prices, then there is a complete price elasticity depending on the exchange rate. The effect of transferring the exchange rate to prices is reflected in the degree of interchange of domestic and imported goods. With significant fluctuations in exchange rates, rising prices for imported products make buyers switch demand for domestic analogues. It was determined factors affecting the size of the effect of transfer of the exchange rate on domestic prices for the products of machine-building enterprises. They can be divided into the following: the structural organization of the markets of specific goods or industry; Features of consumption of imported goods and their elasticity; macroeconomic features of the national economy. Conclusions made regarding the positive and negative effects of dollarization on the price dynamics of machine-building enterprises in Ukraine. The negative consequences include the following: strengthening the export orientation of the machine-building industry based on the competitive advantage based on the low exchange rate of the hryvnia leads to the degradation of the structure of the products being exported; as a result of devaluation of the hryvnia and rising prices in the industry, consumer prices are rising; reduction of investment activity is carried out.
Authors and Affiliations
Olena Chukurna
Keywords
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- EP ID EP562364
- DOI 10.32782/2520-2200/2018-6-21
- Views 133
- Downloads 0
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