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 http://re.gov.ua/doi/re2018.01.143.php. [in Ukrainian]. Sources: 15
Authors
Resume
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.
Keywords:
regional competitiveness index, “smart specialization”, employment structure, EU regions, panel data analysis
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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
The success of attracting investment for increase of scientific, production, financial and economic capacity in existing realities of Ukraine requires effective methods of development of investment attractiveness mechanisms. Search for effective organizational structures for real investment, regardless of ownership and source of funds, is a constant process. The number of laws and regulatory acts that define the foundations of structures to ensure successful investment process as well as preferences and privileges for investors were adopted in Ukraine. In the mid-90s of the last century there were free economic zones, which didn’t perform their duties to a full extent, and in most cases, actually ceased to exist. World experience of investment process shows that in many countries in Europe and in the world the efficiency of economic growth is provided by industrial parks. Ukraine adopted the Law «On Industrial Parks» as of June 21, 2012, № 5018-VI, which regulates the legal basis of industrial parks’ establishment and the procedure of attracting managing companies and their work reglamentation and sets the types of state incentives to attract investment. Based on the adopted Law of Ukraine, creation of a number of industrial parks in different regions of the state was initiated. At the end of 2016 there were 16 parks in the State Register of industrial parks in Ukraine, which had submitted relevant concepts and substantiated the efficiency of these parks. The fact that some farms were created two or three years ago, but currently have not started their work, didn’t attract declared investment and didn’t create new jobs, raises the question of how to change the situation in order to achieve the tasks required. Therefore, the urgency of industrial parks creation and efficiency of their operation must find its development in the works of scientists and in activity of public authorities and local governments.
park, arrangement of industrial park, managing company, participants of industrial park, system approach, initiators of creation
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