Scientific and practical journal
Regional Economy

Cherkas Nataliya Ihorivna

Cherkas Nataliya Ihorivna

Ph.D. of Economics, Associate Professor

Associate Professor of the Department of international economic relations of the Lviv University of Trade and Economics; Doctoral Postgraduate of the Department of international economics of the Kyiv National Economic University n.a. Vadym Hetman




Shevchuk Viktor Oleksiyovych


Repository of Institute of Regional Research UDC 330.341.4:339.137:332.122:[339.923:061.1]; JEL O14, R11
Cherkas, N. I. (2018). Strukturni determinanty rehional'noyi konkurentospromozhnosti: dosvid rehioniv YeS [Structural determinants of regional competitiveness: experience of EU regions]. Rehional'na ekonomika - Regional Economy, 87 (1), 143-151. Retrieved from [in Ukrainian].

Sources: 15

The paper investigates the EU regional policy and assesses the structural factors of the regions’ competitiveness according to the territorial division of NUTS2. The regional disparities in the EU-28 remain to be particularly significant, as many countries (mainly the new members) have lower level of economic development and less advanced infrastructure. Despite the strong efforts to improve the EU’s regional policy, the economic inequalities of the regions remain to be high. The purpose of the study is to analyze and compare the impact of the structure of employment on the competitiveness of the EU regions, taking into account the differences in economic development. A regional space-based development policy, aimed at convergence and economic growth support of structurally weak regions, is analyzed in the paper. The directions of the EU “smart specialization” strategy focused on stimulation of local business initiatives and technological improvement of the region’s base are determined. The main variable of our interest is the Regional Competitiveness Index, which consists of the basic sub-index and the measures of efficiency and innovation. We analyzed ten the most and the least competitive regions of the EU in 2016. In the least developed regions we observed that the absence of companies - technological leaders results in the outflow of skilled labor and the employment is concentrated in low value-added industries, causing a “regional depression trap”. The empirical analysis of the determinants of regional competitiveness was performed with a panel regression for the data of 276 EU regions (NUTS2), divided into 2 subgroups according to the stages of development based on the methodology of Eurostat Statistical Atlas. The first subgroup included stages of development 1-2 (107 regions) and the second – stages of development 3-5 (169 regions). The Regional Competitiveness Index was used as dependent variable, while explanatory variables were the income of private households, the share of employment in industry and in nonfinancial sector. The employment structure reflects shares of low and high value added sectors. The results indicate that increased employment in sectors with low added value negatively affects regional competitiveness. Relatively low employment rates in the EU industrial sector point out that big companies tend to move their production to regions with lower costs of labor and other inputs, often as a consequence of fragmentation of production and extended participation in global value chains. A technology transfer to weaker EU regions improves their employment rates, enhances overall economic efficiency and competitiveness, but keeps the regions exposed to the phenomenon known as “regional depression trap.” The paper identifies the policy recommendations that may contribute to increase of the regional competitiveness. In particular, the support of high value added sectors with high-wage employment provides stimuli for dynamic growth, and, taking into account the current trends of production automatization and the spread of international fragmentation of production stages, may provide sustainable development of the regions. 
regional competitiveness index, “smart specialization”, employment structure, EU regions, panel data analysis 

Repository of Institute of Regional Research UDC 338.45:332.1:339.5:339.564
Shevchuk, V. O., & Cherkas, N. I. (2008). Vplyv dynamiky promyslovoho vyrobnytstva rehionu ta heohrafiyi zovnishn'oyi torhivli na tekhnolohichnyy eksport [The Regional Industrial Production and the Geography of Foreign Trade Influence on the Technological Export]. Rehional'na ekonomika - Regional Economy, 48(2), 34-43. [in Ukrainian].

Sources: 4

The process of Ukrainian foreign trade geographical diversification in the context of technological export stimulation was analyzed in the paper. The regional industrial production dynamics and its influence on the export structure were estimated. The necessity of Ukrainian foreign trade reorientation on the markets of Eastern Europe has been substantiated. 
geographical export diversification, regional industrial production, technological export, the Least Squares method with fixed effects 


Shevchuk V. O., & Cherkas N. I. (2007). Yevrointehratsiya i yakistʹ ekonomichnoho zrostannya [European integration and the quality of economic growth]. In Aktualʹni problemy mizhnarodnykh vidnosyn [Actual problems of international relations]: Vol. 39(2) (pp. 15-23). [In Ukrainian]. {re2018.01.143.007}

Shevchuk, V. O., & Cherkas, N. I. (2008). Vplyv dynamiky promyslovoho vyrobnytstva rehionu ta heohrafiyi zovnishnʹoyi torhivli na tekhnolohichnyy eksport [Impact of dynamics of regional industrial production and geography of foreign trade on technological exports]. Rehionalʹna ekonomika – Regional Economy, 2, 34-43. [In Ukrainian]. {re2018.01.143.011}

Korol, O., & Cherkas, N. (2015). The economic impact of foreign debt in Greece. The Baltic Journal of Economic Studies, 1, 105-112. {re2018.01.143.012}

Shevchuk V. O., & Cherkas N. I. (2006). «Pastka depresyvnosti» prykordonnoho rehionu yak pereshkoda na shlyakhu pidvyshchennya yoho konkurentospromozhnosti. [“Depression Trap” of the border region as an obstacle to increasing its competitiveness]. In: Stratehichnyy rozvytok rehionu – ekonomichne zrostannya ta intehratsiya [Strategic development of the region – economic growth and integration] (pp. 131-133). [In Ukrainian]. {re2018.01.143.013}

Cherkas, N.I. (2017). Ekonomichnyy vymir efektyvnosti uchasti krayin u hlobalʹnykh lantsyuhakh vartosti [Economic Measuring of the Efficiency of Participation in Global Value Chains]. Ekonomika rozvytku – Economy of Development, 4(84), 5-16. [In Ukrainian]. {re2018.01.143.015}

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