Scientific and practical journal
Regional Economy

Journal Regional Economy -- re2021.02.150

Repository of Institute of Regional Research UDC 332.146.2:338.124.4:336:330.16; JEL E11, E27, G18, H73, R11
Storonyanska, I. Z., & Benovska, L. Ya. (2021). Ekonomichna nestabil'nist' vs ekonomichne zrostannya terytoriy: finansovi determinanty ta povedinkovi efekty [Economic instability vs economic growth of territories: financial determinants and behavioral effects]. Rehional'na ekonomika - Regional Economy, 100 (2), 150-164. DOI: [in Ukrainian].
Sources: 14


Storonyanska Iryna Zenoviyivna

Doctor of Economics, Professor

Deputy Director for Scientific Work, Head of the Department of regional financial policy of the Dolishniy Institute of Regional Research of NAS of Ukraine

Contacts:,, (032)270-7043


Benovska Liliya Yaroslavivna

Ph.D. of Economics, Senior Researcher

Senior Researcher, Scientific Secretary of the unit of the Department of regional financial policy of the Dolishniy Institute of Regional Research of NAS of Ukraine




The functioning of the country’s economy during the coronavirus crisis requires in-depth study of financial determinants of impact on socio-economic development of regions, including: price stability, attracting investment and improving the business climate, lending and capital investment, transparency of budget administration, sustainability of public finances. The purpose of the study aims to evaluate the trends and features of economic development of Ukrainian regions in terms of financial determinants of sustainable growth of regions, taking into account behavioral effects. The following methods were used for the study: abstract-logical, comparative analysis, graphical visualization, statistical. Analysis of the financial determinants of regional development in the context of the coronavirus crisis has identified the following negative tendencies: significant reduction of capital investments in the regional economy, reduction of the share of new investment projects; deterioration of the business climate and reduction of lending to businesses; non-fulfilled plans of the main budget-forming indicators of local budgets (PIT, local taxes) was reflected in the volume of expenditures from local budgets, including investment; reduction of transfers to local budgets from the state had a negative impact on the financing of regional development programs; the outflow of foreign capital occurred not only due to the deteriorating business climate in the country, but also due to the pervasive nature of the COVID-19 pandemic and psychological and emotional factors influencing investor behavior in conditions of uncertainty about the nature and duration of the coronary crisis. The fact that, the impact of the COVID-19 crisis is territorially differentiated and its various risks are largely based on economic and spatial features of regional development, needs to be taken into account. As revealed, the most vulnerable are the regions that border territorially with EU countries and whose residents are focused on employment abroad; regions with the lowest indicators of socio-economic development and regions that are characterized by a high level of concentration of economic activity, in particular cities. Further research is focused on the introduction of incentive tools to influence the current condition of regional economic systems, taking into account the behavior of economic entities.


development, region, financial determinants, behavioral effects, investment, business climate, budget


    Pro rishennya Rady natsional'noyi bezpeky i oborony Ukrayiny vid 14 veresnya 2020 roku «Pro Stratehiyu natsional'noyi bezpeky Ukrayiny» [On the decision of the National Security and Defense Council of Ukraine of September 14, 2020 «On the National Security Strategy of Ukraine»] (2020). Decree of the President of Ukraine, adopted on 2020, Sep 14, 392/2020. President of Ukraine: Website. Retrieved from [in Ukrainian].

Web Master P. Popadiuk