Scientific and practical journal
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Regional Economy
   



Journal Regional Economy -- re2020.03.005

Repository of Institute of Regional Research UDC 330.341.4:[332.122:911.375](477.8); JEL R58
Borshchevskyy, V. V. (2020). Mekhanizmy pidvyshchennya efektyvnosti strukturnykh transformatsiy v ekonomitsi velykykh mist Zakhidnoho rehionu Ukrayiny [Mechanisms for increasing the efficiency of structural transformations in the economy of large cities of the Western region of Ukraine]. Rehional'na ekonomika - Regional Economy, 97 (3), 5-13. DOI: https://doi.org/10.36818/1562-0905-2020-3-1. [in Ukrainian].
Sources: 11

Authors



Borshchevskyy Viktor Valentynovych

Doctor of Economics, Associate Professor

Leading Researcher of the Department of spatial development of the Dolishniy Institute of Regional Research of NAS of Ukraine; Head of the Department of public administration of the Ukrainian Catholic University

Contacts: borshchevsky@ukr.net

Webpages:

Resume

The features of the management of large cities’ economies in the Western Region of Ukraine are researched. The main attention is paid to the mechanisms of increasing the efficiency of structural transformations in the city’s economy. In particular, the primary emphasis is on the functioning of financial and organization-management mechanisms. The main barriers that limit the potential for structural transformation of the economy of large cities in the Western Region of Ukraine in modern socio-economic conditions are identified. First of all, in this context, the paper notes the predominance of short-term economic interests of local political elites over the strategic interests of urban development, as well as excessive support of municipal enterprises leading to gradual displacing private business from the local markets of services. As a result, local budgets are used rather inefficiently, and the vast majority of budget expenditures are directed to cover the losses of municipal enterprises, instead of spending on development projects. This causes the actual absence of significant structural changes in the economy of large cities in the Western Region of Ukraine for a long period of time. Improving the situation is possible in case of adequate application of financial and organization-managerial mechanisms to increase the efficiency of structural transformations in the economy of large cities in the Western Region of Ukraine. First of all, it means improving the investment climate, increasing the quality of communal property management, and increasing the share of private business in the urban economy. It is equally important to intensify informational and educational work with the cities’ residents to raise their awareness about the role of private business in the innovative development of the urban economy and in the growing welfare of the local population.

Keywords:

large cities, structural transformations, city economy, financial mechanism, organization-managerial mechanism, economic efficiency

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