UDC 336.15:338.45:351(477.8)
Zablotskyy, M. B. (2015). Detsentralizatsiya i rehulyuvannya rivnovahy i stabilizatsiyi ekonomiky rehionu (na prykladi L'vivs'koyi oblasti) [Decentralization and regulation of balance and stabilization of economy of the region (an example of Lviv region)]. Rehional'na ekonomika - Regional Economy, 75(1), 56-63. [in Ukrainian].
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Authors

Resume

The problems of imbalance of economy of Ukraine regions and methodological approaches to the formation of balance, stabilization and growth are considered. The principles of governance decentralization and regulation of balance of regional economy by local authorities on the basis of market economy are grounded. The main principles of decentralization of economic governance are: firstly, transfer some of management financial and industrial powers from the center to the region; secondly, the region should assume functions of mobilizing of funds for balancing revenues with expenditures; thirdly, making of investments in the economic sphere of the region for optimization of proportions of production, income and consumption. Regional demand for money and regional supply of the natural product as main parameters of balanced economy equation are presented in basis of the model of balance of the economy and functions of major regulators of the region. The dynamics of demand volume for money and supply of the natural product and calculation of real parameters of unbalanced regional economy are estimated on an example of the Lviv region. The information base for the region regulators are key quotient-resulting variables of the model of the region economy Qp = vM and of its dynamic form IQ·ip=iv·IM, where IQ – index of physical product volume, ір – index of product unit price, iv – index of money turnover, IM – index of monetary income volume in the region. Average annual indices of quotient-resulting variables make possible to present the actual condition of the economy of the Lviv region in the form of model: 1,016 IQ · 1,1551ip: 0,966iv · 1,267IM. The model characterizes a high level of imbalance of financial, commodity markets and the economy, which is accompanied with high price increase – 15.5% annually, demand for money – 26.7% due to a very low rate of growth of the physical volume of product in the manufacturing sectors of economy of the region – 1.6%. The annual decrease in money turnover by 3,4% (1,000–0,966) shows a decline in purchasing power of population, creditworthiness of enterprises caused by low-income and profits of enterprises and high inflation level. The growth in circulation of money brings unreal but inflationary revenues and profits. Taking into account the above-mentioned arguments, the dynamics of economy of the Lviv region can be represented by the inequality: IQ

Keywords:

decentralization, regional economy, demand for money, supply of the natural product, balance of the economy, interest rate, money turnover, the rate of accumulation