UDC 332.1:330.322:338.24; JEL R11, H54, O18
Ivashko, O. A., & Ucieklak-Jez, P. (2026). Orhanizatsiyno-ekonomichnyy pidkhid do publichnoho investuvannya v konteksti rehional'noho rozvytku [Organizational and economic approach to public investment in the context of regional development]. Rehional'na ekonomika - Regional Economy, 121 (3), 53-66. DOI: https://doi.org/10.36818/1562-0905-2026-3-4 [in Ukrainian].
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Authors



Ivashko Olena Anatoliyivna

Doctor of Economics, Professor

Associate Professor of the Department of finance of the Lesya Ukrainka Volyn National University

Contacts: olena.ivasko@gmail.com, ivashko.olena@vnu.edu.ua

Webpages:

Ucieklak-Jez Paulina

Ph.D. of Economics

Professor of the Faculty of Law and Economics of the Jan Dlugosz University in Czestochowa

Contacts: p.ucieklak-jez@ujd.edu.pl

Webpages:

Resume

Purpose. This study develops and substantiates an organizational and economic mechanism for public investment aimed at ensuring balanced regional development in Ukraine, taking into account the institutional, financial, and administrative constraints affecting investment management at the regional and local levels, as well as the influence of wartime risks and post-war recovery needs on regional investment policy. Methodology. The study employs a combination of general scientific and specific methods. Theoretical generalization and systematization are used to reveal the conceptual foundations of public investment on the basis of domestic and foreign scientific literature. A systemic and structural-logical approach underpins the construction of the mechanism’s structural model, comprising organizational and economic components. Comparative analysis is applied to distinguish the established system of public investment management at the central level of governance from the underdeveloped system at the regional and local levels, and to identify the changes required to extend the mechanism to the subnational level. Institutional-legal analysis is used to examine the regulatory framework governing public investment in Ukraine, while the abstract-logical method underlies the formulation of conclusions and directions for further research. Findings. The results demonstrate that the effectiveness of public investment management is shaped by a complex interaction of institutional, financial, and administrative factors. In particular, the study highlights that, while a coherent institutional and legal framework for public investment has been established at the central level of governance, no comparable system currently exists at the regional and local levels, which limits the capacity of territories to implement strategic projects, develop infrastructure, and attract private capital. Key constraints identified include organizational shortcomings, limited financial resources, insufficient procedural transparency, and a shortage of qualified personnel. Based on the integration of institutional and structural analysis, a two-block model for the organizational and economic mechanism of public investment development — comprising an organizational block (management, institutional capacity, strategic planning, digitalization) and an economic block (diversified funding sources, public-private partnerships, financial incentives) — is proposed. It is shown that public investment projects contribute to infrastructure development, job creation, improved quality of life, and reduced migration, while also stimulating innovation, economic modernization, and a favorable regional investment climate. Originality. The originality of the study lies in the development of an integrated structural model of the organizational and economic mechanism of public investment, adapted to the conditions of wartime and post-war recovery, that for the first time combines organizational and economic components specifically at the subnational level, where a coherent management system has not yet been established. Practical Value. The proposed mechanism can be used by central and regional/local authorities to build the institutional and legal architecture for public investment management, establish regional and local investment councils, develop public-private partnership mechanisms, create investment passports and databases of ready-to-implement projects, and design monitoring and evaluation systems (KPIs) for public investment project effectiveness in the context of economic transformation and post-war recovery.

Keywords:

public investment, regional development, balanced development, investment policy, public investment management, regional economy, organizational and economic mechanism, public-private partnership, institutional capacity, regional policy, post-war recovery