UDC 352:332.14+624; JEL O18, L74
Zablodska, I. V., Hrechana, S. I., & Kovalchuk, Ye. O. (2024). Koherentnist' staloho budivnytstva ta mistsevoho ekonomichnoho rozvytku na deokupovanykh i postrazhdalykh terytoriyakh [Coherence of Sustainable Building and Local Economic Development in the de-occupied and affected territories]. Rehional'na ekonomika - Regional Economy, 114 (4), 39-51. DOI: https://doi.org/10.36818/1562-0905-2024-4-5 [in Ukrainian].
Sources: 22

Authors



Zablodska Inna Volodymyrivna

Doctor of Economics, Professor

Director, Head of the Department of interregional cooperation issues of the Luhansk branch of the V. Mamutov Institute of Economic and Legal Research of NAS of Ukraine; Professor of the Department of public administration, management and marketing of the Volodymyr Dahl East Ukrainian National University

Contacts: zablodin@gmail.com

Webpages:

Hrechana Svitlana Ivanivna

Ph.D. of Economics, Associate Professor

Senior Researcher of the Department of interregional cooperation issues of the Luhansk branch of the V. Mamutov Institute of Economic and Legal Research of NAS of Ukraine

Contacts: svigrech@gmail.com

Webpages:

Ковальчук Евгений Алексеевич

Postgraduate of the Volodymyr Dahl East Ukrainian National University

Contacts: kov.eugene87@gmail.com

Webpages:

Resume

The article highlights the issue of coherence between sustainable construction and local economic development in the de-occupied and affected territories of Ukraine, especially in the context of hostilities and post-war reconstruction. The authors emphasize the critical role of the construction industry for the restoration of regions that have suffered significant destruction, and emphasize its importance as one of the main drivers of local economic development. The study is based on an analysis of the state of the construction industry in Ukraine before the start of the full-scale invasion and the changes that took place after the start of hostilities, in particular on the example of the Kyiv region, where more than 65% of the territories were destroyed. The article includes an overview of the current state of construction in wartime, which is accompanied by an analysis of statistical data on the volume of construction works, the dynamics of completed construction, investments in the construction industry and their impact on the economic indicators of the regions. The article emphasizes that construction activity activates the local economy through the creation of new jobs, attracting investment and supporting small and medium-sized businesses, but its impact on other areas, in particular the real estate market, is limited. The methodological basis of the study is the adapted matrix of the impact of construction on local economic development proposed by the authors. This matrix takes into account key socio-economic and sectoral indicators, their dynamics and areas of influence, which allows for a systematic assessment of the relationship between construction and development of the region. To check the effectiveness of the proposed methods, examples from the Kyiv region were used, where the indicators of the volume of construction works, the level of employment, revenues of local budgets and the volume of capital investments were analyzed. In addition, the article considers the multiplier effect of construction through the calculation of multipliers of income, taxes and the real estate market. The analysis shows that although construction activities have a significant impact on tax revenues and provide funding for local budgets, their effectiveness in increasing household incomes and stabilizing the real estate market is less significant. This may be due to the fact that a significant portion of construction costs are directed to materials and services from other regions, as well as a shortage of completed construction projects in 2023. The conclusions of the article emphasize the importance of strengthening the participation of local governments, the public and construction companies in the reconstruction and recovery processes. A number of measures aimed at improving coordination between construction projects and local economic development strategies have been proposed, which will help attract investment, return of the population and relocation of business to the regions.

Keywords:

sustainable construction, local economic development, deoccupied territories, construction industry, multiplier effect, impact matrix, recovery

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