A discourse on household expenditure in rural areas in the context of European economic studies

Abstract

The article examines the dynamics and structure of household expenditure in rural areas of Ukraine from 2014 to 2021, utilizing a research toolkit developed by the authors. The study identifies peculiarities in expenditure formation, both in total and by category, taking into consideration inflation response, and determines preconditions for expenditure growth. By estimating the impact of individual expenditures on total household expenditure, the authors conclude that food expenditure is the most important factor in the overall spending of the rural population. A comparative analysis was conducted to examine household expenditure in rural areas of Ukraine and selected EU countries, focusing on the expenditures on food and non-alcoholic beverages; housing, water, electricity, gas and other fuels; healthcare; education; as well as purchasing power standards for different years between 2005 and 2020. The findings reveal noticeable disparities in expenditure levels between Ukraine and EU countries, with significantly lower levels observed in Ukraine. Given Ukraine’s orientation towards European vector of development and drawing from foreign experience and potential national capacities, the study proposes recommendations for a substantial increase in the level of household spending in Ukraine.