The Journal of European Economy is a quarterly peer-reviewed scientific periodical published since 2002. JEE is the only specialised economic journal in Ukraine to publish complete full-text issues in Ukrainian, English and Russian (untill 2015) languages. All archives untill 2017 are available at http://jee.tneu.edu.ua The journal aims to publish original manuscripts that analyse issues related to topical theories and concepts of international economics, peculiarities of economic development in transition economies, phenomena of global and European economic integration, as well as the place of the European countries in the world economy. The scope of the Journal covers the following topics: • Economic theory; • Macroeconomics; • Microeconomics; • International economics; • Economy of European countries; • European integration; • Regionalization in European economic area; • International economic relations of European countries; • Financial and banking services market. The Journal of European Economy is indexed by: «Ukrainika Naukova» database, «Dzherelo» abstracts journal, National Vernadskyi Library (Ukraine) Online scientometric database "Index Copernicus (IC)" (Poland) «Journal of Economic Literature» (JEL) American Economic Association (USA) <a href="https://doaj.org/toc/2519-4089?source=%7B%22query%22%3A%7B%22filtered%22%3A%7B%22filter%22%3A%7B%22bool%22%3A%7B%22must%22%3A%5B%7B%22terms%22%3A%7B%22index.issn.exact%22%3A%5B%222519-4070%22%2C%222519-4089%22%5D%7D%7D%5D%7D%7D%2C%22query%22%3A%7B%22match_all%22%3A%7B%7D%7D%7D%7D%2C%22size%22%3A100%2C%22sort%22%3A%5B%7B%22created_date%22%3A%7B%22order%22%3A%22desc%22%7D%7D%5D%2C%22_source%22%3A%7B%7D%7D">Scientometric database "DOAJ" <a href="https://doaj.org/toc/2519-4089?source=%7B%22query%22%3A%7B%22filtered%22%3A%7B%22filter%22%3A%7B%22bool%22%3A%7B%22must%22%3A%5B%7B%22terms%22%3A%7B%22index.issn.exact%22%3A%5B%222519-4070%22%2C%222519-4089%22%5D%7D%7D%5D%7D%7D%2C%22query%22%3A%7B%22match_all%22%3A%7B%7D%7D%7D%7D%2C%22size%22%3A100%2C%22sort%22%3A%5B%7B%22created_date%22%3A%7B%22order%22%3A%22desc%22%7D%7D%5D%2C%22_source%22%3A%7B%7D%7D">(Sweden) « The European Science Foundation » (Norway) «The Digital Object Identifier» Scientometric database “EBSCO” (USA) Academic Resource Index "ResearchBib" Publication of the journal is performed on a non-commercial basis. Manuscripts are subject to independent peer-review by three or more leading experts in the field. Please see “Guidelines for authors” for detailed description of the peer-review process and article submission details. Please see “Publishing Ethics” for detailed description of the duties of editors, reviewers and authors. The contents of each issue is subject to approval by the Scientific Council of West Ukrainian National University. «Journal of European Economy» is registered at the International Centre of Periodicals on November 10, 2016 (ISSN International Centre of. Paris) and received an ISSN 1684-90Ukrainian printed version), ISSN 2519-190X (Ukrainian electronic version), ISSN 2519-4070 (English printed version), ISSN 2519-4089 (English electronic version). Starting from September 2019, for English versions, the JEE received the DOI (The Digital Object Identifier) - a unique hyperlink that provides direct communication with the publication. https://doi.org/10.35774/jee Publishing partners: University of Western Macedonia (Kozani, Greece) Bratislava University of Economics and Management (Bratislava, Slovakia) The Journal is included in the List of Category B Professional Publications of the Ministry of Education and Science of Ukraine, i.e. periodicals recommended for publishing the results of candidate and doctoral dissertations in the field of economics in specialties 051, 072, 073, 075, 076, 292 (order of the Ministry of Education and Science of Ukraine No. 886 of July 02, 2020). The journal is listed in the Supreme Attestation Commission’s register of specialized publications in economic sciences (Resolution №1-05/2 of 10.03.2010 of the SAC of Ukraine). The Journal of European Economy is registered with the State Committee for Information Policy, Television and Broadcasting (Certificate of state registration of the printed mass media КВ №24737-14677ПР of March 16, 2021, issued by the Ministry of Justice of Ukraine). 2015 subscription index in the catalogue of “Ukrposhta” (Ukrainian State Enterprise of Posts): 23527 (Ukrainian version); 23528 (Russian version); 23529 (English version). Mailing address: Editorial office of the «Journal of European Economy», West Ukrainian National University, vul. Lvivska, 11 Ternopil 46020 Ukraine Tel.: +38 (0352) 47-58-75 (editor-in-chief), +38 (0352) 47-50-75 (editorial office). E-mail: Editor-in-chief: yev.savelyev@gmail.com Editorial office: jee.tneu09@gmail.com Publishing House «Economichna Dumka» (vul. Lvivska 11, Ternopil, 46000, Ukraine, tel (0352) 47 58 72).
Authors who publish with this journal agree to the following terms: Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
ECONOMETRIC MODELLING IN THE PERSONNEL EVALUATION SYSTEM OF INDUSTRIAL ENTERPRISES
This article examines the problem of assessing individual profiles of company employees across the EU, as well as candidate requirements for positions,based on the application of utility theory and the competence-based approach. Particular attention is paid to the justification of differences in the criteria and requirements for candidates on the part of managers representing different generations, who have distinct preferences and values when selecting candidates. The study focused on the processes of candidate evaluation, selection for various positions and salary determination by using competence-based approach for industrial enterprises in EU countries. The aims of the study were to develop a competence-based approach to human resource management in European industrial enterprises; to create a set of mathematical models for individual profiles in human resource management, specifically for evaluating the preferences of HR recruiters and job candidates across different generations; and to analyse wage formation based on competence models. The authors have developed original models that consider various preferences and requirements for candidates for various positions, as well as an objective assessment of salary levels. These models can be used in various candidate assessment programs for various industrial companies in Central and Eastern Europe. JEL: C50, D91, J31.
ESG FINANCING AND BIOECONOMY IN UKRAINIAN POSTWAR DEVELOPMENT: SYNERGIZING EUROPEAN AND GLOBAL PERSPECTIVES
This article formulates a theoretical approach to ESG financing and bioeconomy in Ukrainian postwar development based on a review of European and global literature. The research applies bibliographic analysis following the PRIS- MA standard. The study examined and confirmed the synergy of the following three hypotheses: the irreversibility of the bioeconomic transformation is due to shifts in risks associated with resource use (H1); the ESG financing is an inherent part of the overall financing system for postwar economic development (H2); the Ukrainian economy’s prosperity will be based on the ESG financing and bioeconomy development (H3). The article emphasises the relationship between structural reforms of the economy, the formation of an ESG financing system, and bioeconomy development in line with European principles as strategic directions for enhancing the economic security of Ukraine. It is substantiated that the integration of the European principles of bioeconomy and ESG financing into the strategic planning for national development increases the level of economic security, reduces the risks of dependence on raw material markets, and creates prerequisites for innovative growth. A limitation of the study and a prospect for further research is the absence of multidisciplinary frameworks that identify the elements of economic, social, and environmental systems critical to bio-based transformation processes and their outcomes. JEL: O12, Q01, Q28.
ECONOMIC INTERDEPENDENCE BETWEEN UKRAINE AND OTHER EUROPEAN COUNTRIES IN THE CONTEXT OF STRATEGIC PARTNERSHIP DEVELOPMENT DURING THE WAR
The work analyzes the nature of economic interdependence between Ukraine and European countries under the conditions of Russia’s military aggression against Ukraine.The authors develop and justify an integral Index of Economic Interdependence (EIDI) between Ukraine and 41 European economies (EU countries, candidates, and EFTA states). The index encompasses four key com ponents of bilateral relations: trade in goods and services, financial links, international assistance, and migration flows (relative to Ukrainian and partner GDP or population) in 2024-2025. Additionally, an Economic Asymmetry Index (EAI) is created to assess imbalances in interdependence between Ukraine and its partners.The results show that Ukraine’s most significant partners are Germany, Poland, Cyprus, the Netherlands, and the United Kingdom, with Cyprus serving as a key financial center and Germany acting as the leading trade, migration, and donor partner. Ukraine has a balanced interdependence with 24 European economies and an asymmetrical one with 17 states. Geographic proximity strengthens trade and migration links, while distant countries provide more international aid. JEL: C43, F14, F15, F21, F22, F24, F35.
ECONOMIC SOCIALIZATION AS A FACTOR IN BEHAVIORAL TRANSFORMATION IN UKRAINE IN THE CONTEXT OF EU INTEGRATION
This article is prepared based on the results of a study dedicated to revealing one of the sufficient conditions for the behavioral transformation of the Ukrainian population in the space of European coordinates, which is, in particular, economic socialization, which determines the success of economic activity among EU member states. In order to achieve the necessary changes in the behavioral transformation of the population of Ukraine in the context of its economic socialization, the study used as an information base the materials of surveys of value orientations by the international research center EVS/WVS, as well as a number of other international surveys, along with sociological surveys conducted by the Institute of Sociology of the NAS of Ukraine on changes in public morality, trust, access to work, financial status of families, and more. On their basis, key components that ensure transformational changes in people’s socialization were identified and developed, and a conceptual model of economic socialization of Ukrainian population in the context of Ukraine’s integration into the European Union was proposed. JEL: I31; O15.
UKRAINE’S ECONOMIC INTEGRATION INTO THE EU ORGANIC PRODUCTS MARKET IN THE CONTEXT OF THE GREEN TRANSITION
This article examines the current state and prospects for the integration of Ukraine’s organic sector into the EU market in the context of the green transition. It analyses the dynamics of changes in the area of organic land, exports, and Ukraine’s position in the supply of organic products to the EU market. Based on an analysis of statistical data for 2012–2024 and constructed linear regression models, it is concluded that the EU organic market is mature and predictable for identifying effective directions for Ukrainian exports. Using SWOT analysis, the key challenges facing the sector have been identified: the raw material orientation of exports, the lack of specialised logistics infrastructure, the complexity of certification procedures, the lack of state support, and the shortage of skilled person nel. Ukraine’s strengths and opportunities in the context of economic integration into the EU organic market have been outlined. The article substantiates the necessity of a transition from raw material exports to the production of branded products with high value added to enhance Ukraine’s competitiveness within the framework of the European F2F strategy. Based on the assessment of Ukraine’s organic market, a number of measures are proposed to facilitate the integration of Ukrainian producers into the EU organic market. JEL: F14, F15, L66, O13, O19.
BUILDING AN ECONOMIC MECHANISM FOR DEVELOPING AND UTILISING HUMAN CAPITAL WITHIN THE CONTEXT OF THE VISEGRAD GROUP AND THE NEIGHBOURHOOD POLICY
This article examines the development of an economic mechanism for utilising human capital in the Visegrad Group countries (Poland, Czech Republic, Slovakia, and Hungary) in the context of the Neighbourhood Policy. It analyses the evolution of approaches to developing such a mechanism, from socioreformist and socio-political concepts to contemporary models shaped by transformational processes, European integration, and globalisation. The scientific novelty of this study lies in identifying the fundamental principles underlying the development of a human capital utilisation mechanism, based on a comprehensive analysis of the historical and economic experience of the Visegrad Group countries and within the framework of the Neighbourhood Policy, taking into account key macroeconomic indicators. The findings can be used for further research, as well as for the development of national and corporate human capital strategies in transition economies. JEL: М12, О15.
PROGRAMMES FOR ENSURING ENTERPRISE FINANCIAL SECURITY IN A WARTIME ECONOMY BASED ON MARSHALL PLAN 2.0
This article aims to justify and develop programme tools for ensuring the financial security of enterprises during the wartime economic crisis and in the postwar period, adapting the principles of the Marshall Plan to the recovery of the Ukrainian economy. In the context of crisis challenges caused by military actions and economic instability, applying a scientific and methodological approach to developing financial security programmes serves as an effective tool for stabilising enterprise activity. The article identifies four types of such programmes: (a) risk resilience programme; (b) stabilisation and recovery programme; (c) resilience enhancement and adaptation programme; and (d) restoration of economic activity programme. Special attention is given to the role of state support in creating a favourable environment for post-crisis recovery. The article proposes the implementation of national reconstruction programmes adapted to the principles of the Marshall Plan. Such programmes should include attracting external financing, building financial reserves, and modernising key sectors of the economy. The comprehensive implementation of this approach helps to reduce financial risks, strengthen enterprise resilience, and create conditions for sustainable development. The “Marshall Plan 2.0” can become an effective tool for economic stabilisation, restoration of industrial capacity, and ensuring financial security. The implementation of this plan requires a comprehensive approach, including financial assistance, institutional reforms, and active involvement of private capital. JEL: M15, M20, G30, O32.
FINANCIAL MECHANISMS OF EFFICIENT EMPLOYMENT STRATEGY IN AZERBAIJAN
This study empirically investigates the financial mechanisms underpinning efficient employment strategies in the transition economy of Azerbaijan for the period 2010–2024. Using the Keynesian “effective demand” framework and the NonAccelerating Inflation Rate of Unemployment (NAIRU) concept, the purpose of the article is to improve the financial mechanism of active labor market policy and innovative financing of ecosystems to ensure employment in Azerbaijan, while addressing the challenges of digitalization and the growing skills gap. The original scientific contribution of this paper lies in the development of a “Tripartite Hybrid Financing Model”, which integrates state funding, private sector investment, and educational infrastructure to mitigate the skills mismatch in the non-oil sector. The study expands the analysis by demonstrating the potential application of this model to European transition economies facing similar structural transformations.The research demonstrates that shifting from passive social transfers to investment-oriented employment insurance significantly increases the employment multiplier. Based on 2024 data, the study evaluates the impact of digital transformation on job creation efficiency. The findings provide a strategic roadmap for synchronizing monetary transmission with labor market requirements to ensure long-term macroeconomic stability. JEL: J11, E24, J64.
CIRCULAR ECONOMY DEVELOPMENT IN EU COUNTRIES THROUGH THE LENS OF PLASTIC RECYCLING
This study examines circular economy (CE) performance across 27 EU countries over 2015–2023 using indicators related to patents, resource productivity, plastic packaging waste generation, trade in recyclable raw materials, employment in CE sectors, and plastic packaging recycling. The empirical analysis combines descriptive statistics, correlation analysis, fuzzy c-means clustering, and multinomial logistic regression. The results identify three clusters of EU countries: lagging systems with weak performance across most dimensions, advanced integrated economies combining innovation and recycling capacity, and efficiency-driven recyclers that achieve comparatively strong recycling outcomes despite weaker innovation and labour-market capacity. The findings suggest that CE performance in the EU is not one-dimensional. Multinomial logistic regression confirms that recycling performance is the primary driver of transition from low- to intermediate-level systems, while advanced systems require broader structural integration. The findings highlight gradual, path-dependent transitions and provide evidence for differentiated policy strategies targeting both capacity building and recycling efficiency. The original contribution of this study lies in empirically distinguishing between capacity-driven and outcome-driven dimensions of CE performance and in demonstrating that intermediate circular success can emerge under structurally different national configurations, which has direct implications for differentiated EU cohesion and CE funding policy. JEL: Q56, O52, Q53.
ECONOMIC CONVERGENCE OF UKRAINE'S ONLINE LEARNING MARKET WITHIN EUROPEAN AND GLOBAL EDUCATIONAL FRAMEWORKS
The study analyses the academic discourse on contemporary trends that shape the current state and future transformations of the online learning and EdTech market. To assess the scale, growth rates and regional characteristics of the market's evolution, secondary statistical data from international educational organisations and analytical agencies were analysed. An approximate short-term extrapolation of these trends in the regional distribution of market shares in the EdTech sector was carried out. Concurrently, the economic convergence of the online learning market within global and European educational paradigms was analysed, with Ukraine serving as a case study. A number of issues have been identified in the development of online education in Ukraine, in particular uneven access to digital infrastructure and limited financial resources. The authors offer a series of recommendations for the development of the Ukrainian online learning market and outline potential opportunities for its economic integration into the European educational area. JEL: I21, I23, O33.
THE ECONOMIC MECHANISM FOR REFORMATTING OUTSOURCED ACCOUNTING SERVICES MARKETS IN THE EU
Against the backdrop of the European Union's ongoing harmonisation of professional service markets and the strengthening of anti-money laundering frameworks, this study examines how mandatory professional licensing functions as a market regulation mechanism in the outsourced accounting sector. The study develops a theoretical and conceptual model identifying the causal chain through which regulatory intervention generates compliance costs that operate as entry barriers, produce quality signalling effects, drive pricing adjustments, consolidate the provider market, and generate regulatory avoidance behaviour. Drawing on institutional theory, service quality frameworks, and market consolidation theory, the study analyses how licensing reshapes professional service markets in the European economic space. A longitudinal quasi-experimental before-after design is applied to comprehensive sectoral data spanning 2005–2025, covering 3,567 licensed providers, turnover trends, and comparative institutional evidence from 27 EU member states. Descriptive statistics and theoretical triangulation connect observed licensing effects with SERVQUAL dimensions, institutional isomorphism, and market consolidation theory. Following mandatory licensing in troduced in 2021–2023 in Latvia, the number of providers declined by 14.6% by 2025, while sector turnover grew by approximately 13% annually. By March 2025, 86% of providers had obtained licences. Licensing strengthened quality signalling and encouraged client migration toward licensed providers, while also contributing to indicative price increases of approximately 10% to 15%, regulatory avoidance through NACE code switching, and disproportionate compliance pressure on micro-enterprises. The study adds original empirical evidence from an emerging EU market and offers policy recommendations to improve enforcement, professional education, and regulatory effectiveness in the European economic space. JEL: M40, M41, K20, L84.