UDC 336.14:658.15(477); JEL H72, R11, G32, C33
. Financial support for local communities in the system of factors shaping the financial stability of enterprises in Ukraine’s regions. Rehional'na ekonomika - Regional Economy, 119 (1), 38-49. DOI: https://doi.org/10.36818/1562-0905-2026-1-3 [in English].
Sources: 21

Authors



Ahres Oksana Hryhorivna

Ph.D. of Economics, Associate Professor

Associate Professor of the Department of finance, banking and insurance of the Lviv National Agrarian University

Contacts: oksana_agres@ukr.net

Webpages:

Sadura Oksana Borysivna

Ph.D. of Economics, Associate Professor

Associate Professor of the Department of finance, accounting and analysis of the Academic Institute of Spatial Planning and Advanced Technologies of Lviv Polytechnic National University

Contacts: oksana.b.sadura@lpnu.ua

Webpages:

Resume

Purpose. The purpose of the article is to investigate the financial support of territorial communities as a determinant of the financial stability of enterprises in the regions of Ukraine, based on structural-dynamic and panel econometric analysis. Particular emphasis is placed on identifying the main transmission channels through which the budgetary capacity of territories affects enterprise performance, as well as on assessing the spatial differentiation of this impact under conditions of wartime economic transformation.
Methodology. The methodological framework of the study combines structural-dynamic, econometric, and cluster approaches. The research is based on official statistical data for the period 2018-2024. A panel regression model with fixed effects is employed to evaluate the influence of budgetary and financial indicators on enterprise sales volumes. Additionally, the k-means clustering method is applied to group regions, with prior normalization of indicators to ensure comparability.
Findings. The results reveal substantial regional disparities in the financial capacity of territorial communities. A statistically significant positive relationship is confirmed between local budget revenues, expenditures on economic activity, capital investments, and enterprise sales volumes, with the investment factor demonstrating the strongest effect. The estimated model exhibits a high level of explanatory power (R? within = 0.71). The cluster analysis enables the identification of distinct groups of regions according to their levels of financial support and economic activity, highlighting spatial asymmetries in development and differences in the ability of territories to sustain a stable business environment.
Originality. The scientific novelty of the study lies in the integrated application of panel econometric modeling and cluster analysis for a comprehensive assessment of the relationship between the financial capacity of territorial communities and the financial stability of enterprises at the regional level, allowing for the simultaneous consideration of dynamic and spatial dimensions of development.
Practical value. The practical significance of the obtained results consists in their applicability for designing differentiated regional financial policies, improving mechanisms of entrepreneurship support, optimizing the allocation of budgetary resources, and substantiating managerial decisions aimed at strengthening the financial stability of enterprises under conditions of wartime economic transformation and post-war recovery.

Keywords:

financial support for local communities, financial stability of enterprises, local budgets, regional development, capital investments, budget decentralization