INSTITUTIONAL DETERMINANTS OF UKRAINE'S ECONOMIC RESILIENCE

Abstract

Introduction. The institutional environment is a fundamental factor determining the capacity of a national economy to absorb shocks and undergo structural transformation. This issue is particularly relevant for Ukraine, which has experienced persistent destabilising pressures over the past decade, including a full-scale armed invasion. Understanding the institutional determinants of economic resilience therefore has both theoretical and practical significance.

Purpose. To investigate the theoretical foundations and empirical state of institutional determinants of Ukraine's economic resilience, with particular attention to the digital transformation of the institutional environment.

Materials and Methods. The study draws on new institutional economics theory (North, Williamson, Acemoglu), the concept of economic resilience, and the digital institutional leapfrogging framework. The empirical base consists of the World Bank's Worldwide Governance Indicators (WGI, 2014–2024) and the Corruption Perceptions Index (CPI, 2014–2024). Comparative and systems analysis methods are applied.

Results. Ukraine's institutional environment is characterised by 'institutional dualism': dynamic development of digital institutions (Diia, Prozorro, Trembita) coexists with structural weakness of traditional formal institutions – the judicial system, the regulatory environment, and the executive branch. WGI data confirm this dualism: while the political stability score rose by 26.66 points between 2014 and 2024, government effectiveness and rule of law indicators have stagnated. Digital platforms partially compensate for the weaknesses of traditional institutions, yet do not address their structural causes.

Prospects. Future research should focus on quantifying the contribution of specific institutional determinants to different dimensions of economic resilience, as well as comparative analysis of institutional models in EU candidate countries.