Econometric Modelling of Interrelation between Stock Market Functioning and Parameters of Social & Economic Development of Ukraine

The overview of econometric studies on the role of financial sector in forming the economic growth of developing countries has shown that today the capital market impact on the real economy still remains understudied. Given the above, the author has analyzed the interaction between the parameters of economy macroeconomic development and the stock market of Ukraine. The purpose of this study is building an econometric model of interrelation between the national stock market and key micro- and macroeconomic indicators. This model can be used by public authorities to assess the effectiveness of the national policy system in the field of corporate relations. In the process of the research it has been revealed that the current stage of the national stock market development is characterized by loss of the state's control over either macroeconomic indicators - as evidenced by unemployment, inflation, high level of public debt - and activity of financial institutions that uncontrollably have made loans in domestic and foreign capital markets, which has consequently led to stock market dramatic financial imbalance.