The Impact of Social Factors on Macroeconomic Stability: Empirical Evidence for Ukraine and European Union Countries

The main objective of the paper is to study the role and power of the influence of social factors on macroeconomic stability. The integral indicator of human capital is suggested that allows to consider social factors that need urgent attention from the position of a potential source of increasing macroeconomic stability in the context of the future of the European vector of development of Ukraine. A block diagram is proposed for estimating the integral index of human capital, which consists of five main stages. The results of the work testify to the presence of a positive and statistically significant connection at the level of 5% between social factors and macroeconomic stability of Ukraine in the period 2000-2015. Along with social factors, the openness of the economy and the volume of foreign direct investment are used to increase the accuracy of the model describing the dynamics of macroeconomic stability.