The paper outlines the features of structural transformations in the economy of large cities in conditions of globalization. Special attention is paid to finding priority directions and mechanisms of impact of global economic changes on evolutionary advances in economic structure of large cities. The decisive role of large cities in economic development of contemporary states is emphasized. The processes are accompanied by constant growth of the share of urban population and concentration of growing economic capacity in cities. Moreover, more and more metropolises and global cities emerge. Their major advantage is a high concentration level of production capacities and capital as well as significant human capacity, which promotes innovative development of various sectors of urban economy, mostly energy, information technologies, transport, household services, leisure and banking sector, etc. The following problems are defined as the most essential of those faced by large cities in the era of globalization: deteriorating quality of social capital, growing security challenges, growing risks of technological disasters, deteriorating quality of environment and environmental situation in general, growing load on engineering and social infrastructure, need to secure constant supply of sufficient volumes of drinking water and food. The paper proves that the priority directions of economy development in large cities in the era of globalization is to improve the mobility of population, improve living conditions and meet high standards of citizens’ household comfort, form innovative information-communication networks, establish qualitative planning of urban space, solve ecological problems, namely through renewable energy and prioritization of environmental protection. Recommendations regarding top priority measures of adaptation of large Ukrainian cities to modern requirements of globalization based on the experience of the most developed countries in the world are suggested. In particular, the authors emphasize the need to increase the volumes of investment in the development of information technologies and activation of digitalization of urban space due to releasing the share of budget resources currently inefficiently used and directing them on meeting social needs of citizens. 

structural transformations, large cities, economic globalization, urban space, digital technologies 

The problems of transboundary cooperation development between Ukraine and the EU are addressed. Priority focuses are placed on the disproportionate development of the neighbouring border territories on different sides of the border. The main causes for the blocking of convergent processes in the transboundary space between Ukraine and the EU are identified. The presence of objective background for the rise and spread of institutional trap of cross-border divergence is proved. The key effects and the reasons for the establishment of this institutional trap are described.
The basic mechanisms of forming of cross-border divergence institutional trap at different stages of European integration of Ukraine are studied. Priority directions of the trap’s negative impact on the various links of cross-border cooperation between Ukraine and the EU are outlined. Potential ways to mitigate these effects in sectoral and functional profiles are determined. Main attention focuses on the importance of the quality of human and social capital to eradicate institutional trap of cross-border divergence.
Key areas to overcome the institutional trap of cross-border divergences between the EU and Ukraine are substantiated. Three primary planes of the priority efforts application for government and regional authorities on different sides of the border are allocated. The first plane is considered to be socio-psychological. It covers the traditions and mental attitudes that are associated with the rooting of institutional dysfunctions in cross-border cooperation between Ukraine and the EU. The second plane is the financial-economic one. It concerns economic interests and financial results of participants of the institutional trap of cross-border divergence. The third plane is the plane of organization and management solutions and regulatory policy. It sets the administrative leverage for destruction of institutional trap of cross-border divergence. First of all, it is applied for the development of business activities in the transboundary area between Ukraine and the EU, deregulation of cross-border markets, establishment of modern institutional forms of cross-border interactions, as well as introducing elements of the knowledge economy in near-border EU regions of Ukraine. 

institutional traps, cross-border divergence, cross-border cooperation, near-border regions, cross-border markets, border trade 

Major problems of cross-border cooperation development between Ukraine and the EU on the current stage of European integration are examined. The fact that economic convergence within the cross-border region «Ukraine-EU» reflects the success of cross-border cooperation is proved. This is stipulated by major tasks attributed to cross-border cooperation. Primarily, it refers to the leveling of limiting border function, equaling of social living standards on both sides of the border, activation of cross-border entrepreneurship and implementation of joint investment projects, directed at economy development of the whole cross-border region.
Special attention is paid to considerable role of human and demographic potential in terms of expansion of convergence processes in cross-border space between Ukraine and the EU. In particular, the fact that reduction of population and falling of its qualification level that happens under the conditions of strengthening of labour migration from bordering regions of the Western Ukraine into the EU countries leads to negative consequences is stressed. Primarily, it concerns worsening of the quality of labour resources used in the system of cross-border business and in the work of local governance bodies of bordering territorial communities, and public society institutes involved in cross-border cooperation.
The necessity of top priority development of cross-border labour markets is emphasized in order to increase the efficiency of exploitation of human and demographic potential of Ukraine’s bordering regions, first of all those bordering the EU. The fact that evolution of cross-border labour markets is accompanied by the leveling of labour costs within the whole cross-border region is proved. It promotes maintenance and recovery of human and demographic potential in the zones of cross-border space that are deemed to be depressed. Consequently, convergent processes are being activated and positive institutional impulses, directed at strengthening of bilateral integration in the social and economic space between Ukraine and the EU are being formed.
On this basis the range of proposals for state authorities operating at central and regional levels is suggested. Primary attention is proposed to be paid to the improvement of managers training quality and activation of informational and educational activity in bordering territorial communities of Ukraine aith attraction of specialists from EU countries.
Directions of increasing of local governance management efficiency in the bordering territories of Ukraine are separately outlined. In particular, it is related to improvement of their functional capacity in terms of conducting of administrative and territorial reform. Introduction of subsidiary principle into the practice of regional management of Ukraine’s bordering regions is the major principle of the reform. This will allow bringing their competence level closer to the requirements put before the local governance bodies of bordering territories of EU countries that border Ukraine. As the result, harmonization of institutional environment will take place and will positively influence the convergence and efficiency of human capacity exploitation in the «Ukraine-EU» cross-border region.
Special attention is paid to informational-educational, organizational-institutional and infrastructural components of development of cross-border region’s socio-economic space that encompasses bordering territories of Ukraine and of neighbouring Poland, Slovak Republic, Hungary and Romania. 

convergence, socio-economic space, cross-border region, EU, human and demographic potential 

The impact of innovations on the development of social infrastructure in rural areas is investigated. The factors of increasing the economic potential of the rural areas in the context of the modernization of social infrastructure are identified. Attention is focused on a valuable role of social infrastructure of rural areas for the evolution of agricultural market in the region. In particular, it is emphasized that modernization of social infrastructure stimulates growth of supply and demand in agricultural market in the region. This gives reason to study social infrastructure in rural areas as one of the components of agricultural market’s infrastructure in the region. The study found that the basic components of social infrastructure in rural areas, which affect the formation of economic potential of rural areas and are displayed on the agricultural market in the region, are: the sphere of medical services for the rural population, pre-school and school education in rural areas, public services for country folk, rural recreation and consumer services. Sustainable development and modernization of these constituents promotes expanding employment and stimulates growth of demographic potential of rural areas and the quality of its human and social capital. On this basis labor productivity in agriculture and in relating to agriculture economic spheres is growing. In addition, the investment climate is improving, that entails the increase of investment attractiveness of rural areas. It is substantiated that the quality of human capital improvement and increasing of rural productivity leads to growth of country folk’s income. This stimulates demand on the agricultural market of the region. According to the results of the study proposals for state and local authorities are formulated. These proposals relate to the priorities of implementation of infrastructure innovations in the social sphere of rural areas. In particular, it is proposed to involve modernization of social infrastructure, localized in rural areas, into priorities of the state agricultural policy, using mechanisms of its financial support similar to those operating in the EU. To modernize the social infrastructure of the agrarian market of the region is also proposed to create a modern system of financial incentives for businesses and the public in order to increase investment resources allocated for the modernization of this infrastructure through co-financing mechanism. Decentralization of power and increased levels of financial capability of rural communities is considered to be an important factor in stimulating co-financing of projects of social infrastructure of the agrarian market in the region. In addition, it is proposed to use international technical assistance programs more actively for the implementation of infrastructure projects in rural areas. This primarily refers to projects of modernizing rural medicine and education through grants that are involved by the local authorities and institutions of civil society. 

social infrastructure, rural areas, agricultural market in the region, modernization, economic potential 

The basic institutional dysfunctions in the context of their influence on the efficiency of social and economic potential of development of the rural areas of Ukraine are investigated. The theoretical and methodological principles of forming and deep-rooting the main institutional dysfunctions are analyzed. The special attention is paid to the «institutional traps» (steady inefficient institutions which reduce transactional costs of their participants, but increase these costs for the economy in general), «institutional mutations» and «mimicry of institutions» (partial or complete change of the internal target orientation of the institute while maintaining its «outer shell»), «anomie of the institutions» (weakening and incompleteness of the institution, decrease of the real importance of the rules that it support).

It was found the obvious dependence of the described institutional dysfunctions on the presence in the economic space of the country such institutional gaps as: «institutional vacuum» (lack of institutions and norms required for the proper regulation of the economy), «institutional ruptures» (regulatory disparities between adjacent institutions or institutional levels), «institutional pits» (the part of the institutional space in which there is a simultaneous need of institutional changes but there are no institutional mechanisms of such changes), «anti-institutions» (norms that does not comply with the spirit of particular institutional environment and rules of economic behavior).

The examples of the destructive influence of the institutional dysfunctions on the efficiency of using the potential of social and economic development of rural areas of Ukraine are proposed. In particular, the attention focuses on the significant decrease of labor productivity and falling of profitability of agricultural production under the influence of the «institutional traps», «institutional mutations», «institutional anomie» and «mimicry of institutions».

The reasons for the emergence of the major institutional dysfunction in the rural economy are identified. In particular, the genesis of formatting of the institutional «corruption trap», «illegalization trap» and «trap of self-implementing pessimistic expectations» under the influence of the «institutional vacuum», «institutional ruptures», «institutional pits» and «anti-institutions» that cause the lack of control of the local government, destroy the sound competition in the rural economy, decrease the quality of human and social capital of the village, demoralization of the rural society is traced.

Means of minimizing the destructive impact of the institutional dysfunctions on the efficiency of using the potential of social and economic development of rural areas of Ukraine are proposed. This primarily refers to blocking the reasons that lead to the producing of the institutional «corruption trap «, «illegalization trap» and «trap of self-implementing pessimistic expectations» in rural areas. In addition, directions of forming in the rural economy of a number of institutions that can to compete with «institutional traps» are outlined. These institutions will ensure for their participants smaller transaction costs than under conditions of the «institutional traps» and destroying these traps. Agricultural clusters and agro-industrial parks may be the examples of such institutions.

The tools that can ensure the efficient use of the socio-economic potential of Ukraine rural areas on the basis of development of the local self-government village institutions, rural entrepreneurship, education and health protection of the rural residents are described. 

institutional dysfunctions, rural areas, socio-economic potential, efficiency 

Special features of functioning of the region agricultural market in the context of modernization of its infrastructure are investigated. The main emphasis is placed on identifying factors and barriers of the innovative development of production, financial and institutional infrastructure of the agricultural market of the Lviv region aimed at the rural areas potential increasing. On this basis the conclusions are formulated that the priority directions for further improvement of the agricultural market infrastructure of the region under the modern conditions are demonopolization of the economy, decentralization of the financial and budgetary system as well as liberalization of the foreign economic activity. 

Analyzed advanced domestic and foreign scholars arguments about the potential benefits and risks for the domestic food sector at the prospect of signing by the Ukraine Association Agreement and formation of free trade zone with the EU. The influence of activation of Ukraine’s European integration on the formation of relations with the Russian Federation and other countries of the Customs Union in the agri-food sector. 

agricultural production, free trade zone, European Union, Association Agreement, Russian Federation 

Main directions for formation of human potential on rural territories in the context of eurointegration of Ukraine are researched. The influence of the Protestant ethics on the formation of European values ideology in rural territories is reviewed. Correlation between collective-state farming in Soviet period and the mentality of rural inhabitants in Ukraine nowadays is analyzed. The necessity of consideration of axiological basics in formation of rural territories’ human potential is substantiated. Emphasis is focused on priority of European value landmarks for increase of human potential of rural territories of Ukraine. 

axiological basics, human potential, rural territories, eurointegration 

The features of modern agribusiness in Ukraine are revealed. The existing potential of the country in agricultural production is analyzed and the level of its implementation is assessed taking into account the available resource potential of rural areas. Based on consideration of the potential risks of rural development the measures to promote the development of agribusiness on a competitive basis are proposed. 

agribusiness, competitive environment, rural areas