Socio-economic determinants’ impact on financial support for social safety in Ukraine

Abstract

The authors estimate the nature and scale of interrelation between socio-economic factors and the level of financial support for the social safety net, which is characterized by general financial expenditures for social purposes both through the public finances system (Consolidated Budget of Ukraine and funds of mandatory state social insurance) and the private sector (insurance companies, private pension funds, charitable funds, etc.). The public finance crisis and complicated demographic situation require finding new sources of social expenditures funding, which, according to the authors, is possible only after the full analysis of the socio-economic factors impact on the level of financial support for the social safety net. The contribution of the authors in this problem development lays in comprehensive and complex assessment of the nature and impact of factors not only on the social safety net, but also on other factors that determine the socio-economic development of society. This assessment is conducted under econometric modelling, namely, correlation pleiades applying, based on multiple regressions, in order to establish the influence of selected factors that determine financial support for the social safety net. The obtained research results indicate the significant effect of selected factors (indicator features) on the resulting characteristic (social security budget). However, analysis of obtained parameters (regression coefficients, elasticity coefficient, pair correlation coefficients) made it possible to distinguish the main socio-economic determinants, which have the greatest impact on the financial support of the social safety net. It allows focusing attention in future studies on the most important socio-economic factors aiming to identify potential areas of the financial support for the social safety net improving