THE IMPACT OF DIGITAL FINANCIAL SPACE ON ECONOMIC DEVELOPMENT: ANALYSIS OF POTENTIAL AND PROSPECTS FOR UKRAINE
Abstract
This article investigates the influence of the digital financial space on Ukraine's economic development. The research aims to determine the role of the digital financial space in ensuring Ukraine's economic growth, as well as developing recommendations for effectively harnessing the potential of digital finance to stimulate economic growth. The topic's relevance is due to the rapid digitalization of the financial sector and the need to assess its impact on the country's economic indicators. The research methodology is based on a comprehensive approach that includes SWOT analysis and time series analysis. The Python programming language with relevant libraries was used as a data processing tool. The main digital financial platforms and services that are used in Ukraine were analyzed in this article. The SWOT analysis determined that the main advantages of digital finance are its innovativeness, user-friendliness, increased financial inclusion, and transaction transparency. At the same time, key challenges were identified: cybersecurity risks, regulatory uncertainty, and the potential exacerbation of digital inequality. It was found that an increase in the volume of cashless transactions has a moderate positive impact on Ukraine's GDP. A steady growth in the volume of cashless transactions was observed, contrasting with cyclical fluctuations in GDP, indicating a gradual but steady adaptation of the market to digital payment systems. A forecast analysis of GDP and cashless transaction volumes was conducted. An important result is the identification of the potential of digital finance to stimulate economic growth through increased efficiency of financial processes, reduced transaction costs, and promotion of financial inclusion. The study emphasizes the need for a balanced approach to the development of the digital financial space, which would take into account both the opportunities and risks of digitalization. The practical value of the article lies in providing recommendations for the development of the digital financial space in Ukraine. The results of the study can be used in developing strategies for the financial sector and forming state policy in the field of digital economy.
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