Senior Researcher of the Regional Branch of the National Institute for Strategic Studies in Lviv; Associate Professor of the Department of economics of the Lviv University of Trade and Economics
The basic prerequisites for the development of small business in mountain regions and the degree of their differentiation with other territories of the Carpathian region of Ukraine are generalized. The paper establishes that the increase of business activity of the population, increase of scale and efficiency of activity of small business entities as a source of job creation, increase of employment and increase of residents’ well-being are a significant untapped resource for the development of mountain regions of Ukraine. The main obstacles to the development of small business in the mountain regions of Ukraine, which accelerate the migration activity of the population in the course of conservation, are characterized. Based on the results of public polls, the causes that led to the deterioration of the functional characteristics of small business in the Carpathian region of Ukraine are identified and the deficiencies of the state migration policy in the context of mountain areas development are highlighted. The paper outlines the perspective directions of development and increase of functioning efficiency of small business in the mountain regions of the Carpathian region of Ukraine, including: opening of new business objects, starting their own business, including at the expense of employees, creation of clusters (other local integrated structures), launching and expanding cooperative practices, creating new business entities, increasing the number of employees in the small business sector. Measures have been developed to support and create an enabling environment for the development of small business as a leading factor in maintaining demo-reproductive potential and eliminating disparities in the socio-economic development of the mountainous regions of the Carpathian region of Ukraine. The whole set of measures is combined in several directions: improvement of financial resources for small business; improving the business environment for small business development; improvement of regulatory regulation of small business development.
small business, population migration, mountainous areas, state policy
The ability of the economy to achieve and maintain imported independence due to a proper institutional and organizational preparation and studying the world experience is a necessary condition for its high efficiency and practical implementation. International experience in realization of the import substitution policy is particularly vital for countries where the economy is highly import-dependent and the level of dependence is expected to grow in future. Ukraine belongs to this kind of countries, since starting from its independence proclamation it has failed to ensure economic protection and security of the domestic producers and the consumer market as a whole. The purpose of this article is to study the directions, strategic priorities, tools and results of introducing the state policy of import substitution at the regional-sectoral level taking into account international experience and opportunities of its implementation in Ukraine. The paper’s methodological basis is made up of fundamental principles of the systemic-structural, functional, and logical analysis of scientific and special methods, modern concepts of institutional economics. Strategic priorities, tools and results (positive and negative) of implementing the state policy of import substitution in sectors of the economy for certain groups of countries are studied. The countries are classified with respect to the ability to restore internal trade potential for developing industries, to support key sectors of the economy, to stimulate the development of high-tech industries. The study concludes that the state policy of import substitution tends to be transformed with the development of economy, foreign trade relations, the institutional and legal system of the state and world trade in general. Given the characteristics of the experience of certain groups of countries the authors grounded its possible use at the present stage of development of Ukraine’s economy, which is characterized by high level of import dependence. It is concluded that the global experience of state policy of import substitution allows us to speak about different ways of its implementation, but in general they can be grouped in two directions – protectionist and liberal It is ascertained that the effectiveness of each of these historical periods differs significantly and is constantly changing along with the changes in the technology of mining and processing of raw materials, regulatory and consumers’ quality requirements to the final products, financial and investment potential of the states.
public policy of import substitution, industry, protectionism, state’s economy, regional characteristics
Citations
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economist_555@ukr.net
UDC 334.012.64:314.745(477); JEL J23, M21, O15, R23