Kluchnyk L. Generation and exploitation of household investment capacity

Українська версія

Thesis for the degree of Doctor of Philosophy (PhD)

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  • 072 - Управління та адміністрування. Фінанси, банківська справа та страхування


Specialized Academic Board

ДФ 35.154.003

Dolishniy Institute of Regional Research of NAS of Ukraine


The thesis addresses the problems of generation and exploitation of the household investment capacity. The study defines the theoretical foundations of management of the household financial resources and substantiates their role in the generation of the household investment capacity. Based on the analysis of approaches to the interpretation of the household, capacity, and investment capacity concepts as the set of categorical tools to develop the content of the household investment capacity, the latter is defined as a set of financial resources in the form of savings and attracted financial resources used and intended for the use through direct or indirect investment to receive income and generate and increase the household assets. The classification of factors influencing the generation of the household investment capacity is supplemented based on the generalization of approaches to detecting the factors influencing the household investment capacity and in terms of challenges of the modern economic development stage. The following classification features are revealed: resource-based, economic, social, psychological, political and institutional. The research characterizes main models and trends of household financial behavior in Ukraine, namely the consuming behavior model, saving behavior model and investment behavior model. The thesis enhances the scientific foundations of the functioning of the household savings transformation into an investment resources model. In particular, the following components are determined: savings in bank accounts or non-bank financial institutions (credit unions, private pension funds), investment in insurance policies, investment in the purchase of housing, education, healthcare, savings for private entrepreneurial activity, investment in alternate investment, etc., or cash savings in national or foreign currency. The transformation of the household savings is suggested to be interpreted as the process of converting the monetary resources into financial and non-financial assets to receive income (for this investment) or keep their cost as well as produce and multiply the household assets. This approach, unlike the current ones, is based on the use of the asset-oriented management of the household financial resources and stipulates the consideration of future benefits of households as investors. The author focuses on an urgent problem of savings transformation into an investment, including the following major issues: insufficient household income level, confidence in banking institutions, namely guaranteeing the savings and reimbursement of savings, and low financial intelligence of households. The peculiarities of investment capacity generation and exploitation by domestic and European households are compared and essential differences are outlined, including one of the most important – the impact of income level on the household investment capacity and protection of household income from inflation. The thesis improves the scientific-methodological approaches to strategic diagnostics of the household investment capacity generation, which differ from the current ones by being based on regional generation features. The cluster approach is suggested to be combined with the correlation-regression analysis to improve the system of national and regional diagnostics of the household investment capacity generation and analysis in Ukraine. The cluster approach allows combining the advantages of regional specifics to increase the household investment capacity by detection of factors. It contributed to substantiating the strategic priorities of stimulating the growing household investment capacity based on the regional development specifics. The research substantiates the need to shift from personal income tax that depends on the income level and does not take family circumstances into account to joint taxation of household income. The approach stipulates taxation of income that exceeds the subsistence level calculated per each household member, while income equal to or below subsistence level is not subject to taxation. Partial or complete tax exemption for households with below-subsistence level income will increase the household investment capacity. The thesis emphasizes the need for the development of the system of guaranteeing individual deposits (by increasing the maximum amount of reimbursement on deposits by the Individual Deposit Guarantee Fund) and creation of conditions to restore the increase in the level of confidence in the banking system to improve the households’ propensity to save.


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