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Government Assistance Programs For Internally Displaced Persons: Assessing The Impact On Economic Growth And Labour Market

Author

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  • Halyna YURCHYK

    (PhD; National University of Water and Environmental Engineering; Soborna 11, 33028, Rivne; Ukraine)

  • Halyna MISHCHUK

    (Professor PhD; National University of Water and Environmental Engineering; Soborna 11, 33028, Rivne; Ukraine)

  • Yuriy BILAN

    (Professor PhD. hab.; Bioeconomy Research Institute, Vytautas Magnus University, K. Donelaicio g. 58, 44248 Kaunas, Lithuania)

Abstract

In this paper, we analyse the economic influence of expenditures on social protection of internally displaced persons (IDPs) trying to find a response to the research question: if social expenditures can be used in public administration as an effective tool for fostering economic growth and labour market development, or their only purpose is social support within the social responsibility of the government. Thus, we conduct our research using the case of Ukraine with its unprecedented scope of internal displacement caused by the war. To analyse the dependencies between social expenditures and economic growth we use the multiplier calculations. As a result, we found out that the expenditures on social protection of IDPs cause the growth of GDP with a ratio of at least 1:1,23. Besides, due to the indirect economic influence of social expenditures on consumer spending, it was possible to support no less than 13,7 thousand workplaces annually. To substantiate this impact, we used the authors’ method based on the evaluation of marginal propensity to consume and average cost to support workplaces (found as a dependency between consumer spending and employment). The proposed methodology can be useful for scientific analysis and justification of policy measures aimed at different social groups needing financial assistance from the government.

Suggested Citation

  • Halyna YURCHYK & Halyna MISHCHUK & Yuriy BILAN, 2023. "Government Assistance Programs For Internally Displaced Persons: Assessing The Impact On Economic Growth And Labour Market," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2023(41), pages 201-218.
    • Handle: RePEc:rom:rampas:v:2023:y:2023:i:41:p:201-218
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    References listed on IDEAS

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    1. Naziye Dirikgil, 2023. "Addressing the Prevention of Internal Displacement: the Right Not to Be Arbitrarily Displaced," Journal of International Migration and Integration, Springer, vol. 24(1), pages 113-138, March.
    2. Gwendolyn Sasse, 2020. "War and Displacement: The Case of Ukraine," Europe-Asia Studies, Taylor & Francis Journals, vol. 72(3), pages 347-353, March.
    3. Markus Loewe & Tina Zintl, 2021. "State Fragility, Social Contracts and the Role of Social Protection: Perspectives from the Middle East and North Africa (MENA) Region," Social Sciences, MDPI, vol. 10(12), pages 1-23, November.
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    Cited by:

    1. Dan-Alexandru LAZÄ‚R, 2024. "Management Of Transformational Leadership And Burnout," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 16(4), pages 18-25, December.

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