Professor of the Department of international economic relations of the Central Ukrainian National Technical University; Senior Researcher of the Department of spatial development of the Dolishniy Institute of Regional Research of NAS of Ukraine
The article examines the state and prospects of financial support for the development of agglomerations in the Carpathian region. Based on the study of the incomes and expenditures of the budgets of local communities, the internal potential for financing the development of Lviv, Ivano-Frankivsk, Uzhhorod and Chernivtsi agglomerations was assessed. As a result of the study, it was determined that the agglomerations of the Carpathian region do not have the opportunity to form a special fund of the local budget in the amount sufficient for the implementation of projects on construction, development of transport, road infrastructure and housing and communal services. In view of the deficit of the state budget in the conditions of the war in Ukraine and the limited capacity of the state to finance local development, attracting funds from European Union programmes has been identified as a promising direction for improving the financial capacity of agglomerations. The application of a complex financing mechanism for the development of agglomerations of the Carpathian region in the conditions of European integration is proposed, which combines internal (state budget subsidies, the Regional Development Fund, local budgets) and external (EU programmes in the field of cross-border cooperation, Twinning, URBACT, Interreg Europe, Horizon Europe, Digital Europe Programme, Environment and Climate Action Programme (LIFE)) sources. The expediency of creating community associations as a form of institutionalization of local community relations within Ivano-Frankivsk, Uzhhorod, and Chernivtsi agglomerations based on the example of the Lviv agglomeration is substantiated. In order to intensify the work of local communities regarding participation in EU programmes and obtaining funding for the implementation of development projects, it is proposed to create a community association fund in each agglomeration, from which the activities of the project office will be financed. The following criteria for determining the size of community contributions to the Association Fund are defined: (1) the amount of the contribution is calculated in proportion to the existing population; (2) the contribution amount is calculated as a percentage of budget revenues; (3) the amount of the contribution is calculated as a percentage of the planned expenditure from the budget.
agglomeration, Carpathian region, community association, association fund, EU financial assistance, EU programmes
The article analyzes the state of foreign trade in the regions of Ukraine during the war and examines the dynamics and structural changes in the export and import of goods in 2022 compared to 2021. Based on the analysis of changes in the foreign trade in the regions of Ukraine during the war, the main threats to foreign trade security in the regions are identified. The directions for reducing the negative impact of threats on the economy of the regions in the conditions of martial law are determined. Four groups of regions are distinguished based on the peculiarities of the conditions of foreign trade and the level of threats to foreign trade security. The ways of reducing the threats to the foreign trade security in the regions in the conditions of martial law are substantiated. The main measures for regions with a high and significant level of threats include the relocation of enterprises to safe regions, improvement of the logistics of export of goods, and the increase of capacities for the processing of raw materials. For regions with a moderate and low level of threat, it is necessary to ensure the development of processing industry, promote structural transformations of the economy, and activate innovative activities. A mechanism for reducing threats to the foreign trade security of Ukraine’s regions during the period of post-war economic reconstruction is proposed. The main institutional instruments of the mechanism are defined as the Recovery Plan of Ukraine, the Export Strategy of Ukraine, the State Strategy of Regional Development, and strategies for the socio-economic development of regions. Ensuring the effective functioning of the mechanism for reducing threats to foreign trade security requires coordination of the goals and objectives of all institutional instruments and the use of appropriate economic levers. Improvement of the institutional environment of economic activity, including Ukraine’s use of the opportunities provided by the European Commission’s support programs for candidate countries for EU accession, is an important condition for the effectiveness of the proposed mechanism. The objective function of the mechanism for reducing threats to foreign trade security in the regions is to improve the indicators of dynamics, product structure, and efficiency of foreign trade.
The article examines the state of foreign trade security of Ukraine in 2013-2020. Based on the positive dynamics of the integrated indicator of foreign trade security, the compliance of foreign trade indicators with economic security criteria in most regions of Ukraine is verified. The results of calculating the integrated indicator sensitivity to changes in foreign trade security indicators identify the most common threats to foreign trade at the regional level in 2020. Based on a cluster analysis of Ukraine’s regions for foreign trade security in 2020, common features and problems of foreign trade are outlined. The pre-war state of foreign trade of the regions of each group and the peculiarities of export-import operations under martial law are analyzed. Based on the analysis of foreign trade indicators in 2022 and taking into account the factors of foreign trade security, the key threats to each group of regions during the war are identified. Russia’s aggression is the main external threat, which has a systemic nature and determines the state of the economic security of the regions. As a result of the threat of war, domestic threats are growing, caused by the inefficient structure of the regional economy and raw material exports. For the regions where the export of raw materials predominates, the main threats include the imbalance of foreign trade due to a sharp decline in exports as the result of logistics disruption, complete or partial loss of foreign markets, and increasing import dependence. In wartime, the decline in exports of high-tech goods or science-intensive services due to hostilities, destruction of enterprises and telecommunications, and loss of intellectual potential are the greatest threats to foreign trade security of regions with a significant share of high-tech products and science-intensive services.
foreign trade security, foreign trade, region, threats, cluster analysis, grouping of regions, martial law
Bila, S. O., Babets, I. H., & Valyushko, I. V. (2011). Mizhrehional’ne spivrobitnytstvo u systemi novoyi rehional’noyi polityky Ukrayiny [Interregional co-operation in the system of the new regional policy of Ukraine]: Analytical report. Kyiv: National Institute for Strategic Studies. [in Ukrainian]. {re2018.03.010.018}
Babets, I., & Fleychuk, M. (2020). External Economic Security of Ukraine: Conditions, Problems and Prospects. Management Theory and Studies for Rural Business and Infrastructure Development, 42(3), 316-322. DOI: https://doi.org/10.15544/mts.2020.31 {re2022.02.101.009}
Babets, I. H. (2021). Teoretyko-metodolohichni zasady doslidzhennya vplyvu zovnishn’oekonomichnykh chynnykiv na ekonomichnu bezpeku rehioniv Ukrayiny [Theoretical and methodological principles of studying the impact of foreign economic factors on the economic security of the regions of Ukraine]. Problemy ekonomiky – The problems of economy, 4, 85-91. DOI: https://doi.org/10.32983/2222-0712-2021-4-85-91 [in Ukrainian]. {re2022.02.101.010}
Babets, I. H. (2022). Zovnishn’otorhovel’na bezpeka rehioniv Ukrayiny: vnutrishni ta zovnishni zahrozy v umovakh voyennoho stanu [Foreign trade security of Ukraine’s regions: internal and external threats under martial law]. Rehional’na ekonomika – Regional Economy, 104(2), 101-110. DOI: https://doi.org/10.36818/1562-0905-2022-2-11 [in Ukrainian]. {re2023.02.050.006}