THE ROLE OF ECONOMIC GROWTH THEORIES IN THE FORMATION OF FINANCIAL MECHANISMS FOR POST-WAR RECOVERY

Abstract

Accelerating post-war economic recovery processes in Ukraine requires a profound rethinking of the theoretical foundations of economic growth and the development of financial mechanisms capable of ensuring sustainable, inclusive, and technology-oriented development. This study presents a systematic analysis of classical and contemporary theories that underpin key principles of economic growth–including Keynesianism, neoliberalism, institutionalism, endogenous and exogenous growth models, sustainable development, and digital transformation–with the aim of identifying their practical relevance and potential applicability in shaping a strategic model and financial mechanisms for post-war recovery and reconstruction of the national economy. Through a creative reinterpretation of core theoretical concepts and the comprehensive application of comparative analysis, systematization, logical generalization, and expert evaluation methods, the research identifies the main factors influencing the effectiveness of economic policy in the context of post-conflict transformation. Special attention is given to the role of state institutions, investment in human capital, innovation, digitalization, and ecological modernization. The study substantiates the need to combine market incentives with institutional reforms to ensure a balance between economic efficiency, social equity, and environmental sustainability. It outlines pathways for integrating theoretical insights into national financial policy, particularly through fiscal stimulus mechanisms, support for innovative enterprises, development of digital infrastructure, and the implementation of green projects. The research demonstrates that a modern model of economic growth must be interdisciplinary, adaptive to global challenges, and capable of delivering long-term stability. The proposed approaches can be utilized by public authorities to inform strategic decisions in economic planning, financial regulation, and institutional modernization throughout Ukraine’s post-war recovery process.