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Gaydukova J.
Tryhub I.P.
National University of
Food Technologies
THE EVOLUTION
OF FINANCIAL MODELS IN THE COMMUNITY
The distribution and redistribution of
gross domestic product (GDP ) can be performed by various schemes under which
financial models are built relationships in the community. The sequence
distribution of GDP divided into administrative model and market.
The essence of the administrative model
of financial relations is that the bulk of GDP centrally concentrated in the
state budget and excluded from the distribution relations [1]. This model is
characterized by the former Soviet Union and other socialist countries such as
the Communistic Republic of China or Cuba.
The financial model of the market economy
means that the value of realized GDP divided between those who are engaged in
its creation. This is especially the owners of production that profit and the
workers and employees who are paid wages [2].
This model uses financial relations of capitalism, which are based on the
principles of private property, rational and efficient use of available
resources.
A particular model that emerged during
the XX century, is a Chinese model of economic growth, which depends on the
world economy as a whole. On the Chinese model has been much dispute and some
scholars deny its existence, while others say that it is universal , that is
inherent in many developed countries. Its main features are: orientation
of the economy ( especially in the export industry);
the use of cheap labor to attract foreign investment and technology import
active; high share of investment in GDP;
the active participation of the state in economic development;
the creation of special economic zones; one-party model (which
gives the country's stability and is important to
raise capital).
Chinese model has important features. The first feature is,
most unique, large population and vast territory . The
second
feature is the largest of all of the role of the state
under the rule of the Communist Party. A key in the
Chinese model is an opportunity for reform. The third feature is
a large part of the ethnic Chinese of foreign capital and the existence of
entire nations of the Chinese population (Hong Kong, Taiwan and Singapore).
These basic features of the Chinese model in conjunction with the Chinese
reforms make China a success, but this model has potential drawbacks:
1) no proper concern for environmental
protection;
2) the policy of
limited fertility, which reduces the cost of the younger generation;
3 ) the low rate of the yuan , which
promotes exports, which in 1997 has protected China from the crisis, while
other countries hard hit by the overvalued exchange rate of their currencies;
4) deliberate government policy in the
field of low tariffs for energy and raw materials, innovation , etc.
Based on the foregoing, we conclude that
the Chinese model of regulation of financial relations, despite all its flaws,
is a very positive example among developing countries. Among its positive
elements some of them can be applied in Ukraine. In the
regulation of the banking sector was very positive experience in China to
introduce tighter rules for the minimum amount of capital contributed to the
concentration of the bank and the banking sector, which is especially important
for Ukraine. In the area of securities regulation is a positive experience in
China to introduce tax on the sale of shares, which made it possible to stop the stock market from a
significant overheating. Full fixing the exchange rate by 2005 and a gradual
appreciation of the renminbi rather slow contributed to increased investor
confidence and achievement of the world's largest reserves. Finally, control
the movement of foreign capital in China has led to a very slight increase of
debt, which is very important for our country.
Thus,
we can conclude that the Chinese financial model in part suitable for Ukraine.
References:
1. Azarenkov G.M.,
Borisenko I.I. Finance: Workshop - K.
Knowledge, 2008.- 279
p.
2.
Finance for financiers : a textbook . / O.A.
Sheremet, I..V Dem'yanenko,
K.V.
Bagatskaya . In common. eds. T.A.
Hovorushko - K. “Centre textbooks “,
2013- 612 p.