Scientific and practical journal
Regional Economy

Regional Economy -- Year 2017, Issue 1(83)

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Regional Policy and Territorial Development

Repository of Institute of Regional Research UDC 331.102.344:332.122:330.34(477); JEL L20, L25, M21, J24, O34
Davymuka, S. A., & Fedulova, L. I. (2017). Intelektual'nyy resurs – osnovnyy faktor zabezpechennya staloho rozvytku rehioniv Ukrayiny v umovakh detsentralizatsiyi [Intellectual resource – the key factor of regions’ sustainable development maintenance in Ukraine in terms of decentralization]. Rehional'na ekonomika - Regional Economy, 83(1), 5-16. [in Ukrainian].

Sources: 23

Problem: identification of intellectual resources and forming of their critical mass at the level of each region should be the strategic task of both central authorities and local governing bodies in order to maintain real possibilities to conduct decentralization policy at local level.
Objective: to outline the role of intellectual resources in conducting of decentralization policy and to reveal the problems of their forming in Ukraine on the example of intellectual property institute and taking into account the EU experience.
Research methods: provisions of innovation theory in terms of application of open innovation concept principles and provisions of latest regionalism theories were used. On the basis of statistical analysis the evaluation of intellectual property development condition in Ukrainian regions was conducted. Using the analysis and synthesis methods the EU experience in the development of innovation strategies and intellectual property institute was examined. On the basis of system approach the recommendations on state regional policy in terms of region’s intellectual resources attraction to conducting of decentralization reform were given.
Research results: the nature and role of intellectual resource was outlined and its connection with the factors of innovative and technological development of regions is determined. Peculiarities of experience were examined and preconditions of forming and development of EU regional economic policy in the course of decentralization and integration were characterized. Regions’ intellectual property condition in Ukraine was analyzed and its influence on the parameters of science-intensity of gross regional product was explained. The problems restraining the forming of intellectual property institute in Ukraine were defined, including the absence of intellectual property long-term development strategy in Ukraine; poor coordination of state authorities’ activity; low activity efficiency of the structures that maintain intellectual property rights’ protection; insufficient system of providing services in terms of intellectual property protection related to general condition of this activity infrastructure, especially in the regions; underdeveloped non-governmental forms of this activity management in the country; shortcomings of valuation, accounting and statistics in the sphere of intellectual property.
Recommendations concerning the improvement of regional economic policy mechanisms in terms of attraction, forming and implementation of regions’ intellectual resources and strengthening of regional innovative ecosystem’s role were given. The fact that competitive policy should be taken into account as efficient instrument of regional economic development acceleration in case that it addresses the capacity of innovative activity and human resources development is emphasized.
Conclusions and suggestions: qualitative and quantitative characteristics of region’s intellectual resource, on one hand, depend on the condition of socio-economic development and regional innovative systems development, and on the other hand – they directly influence the functioning of regions in terms of decentralization being the key feature of their personality and major driver of strategic tasks implementation and social cohesion forming under the conditions of post-industrial economy. Systemic solution of issues concerning legal protection of intellectual rights and mechanisms of implementation of results achieved in the course of intellectual activity, stimulation of creative activity, outsourcing of technology-intensive production and services and introduction of exclusive innovative business-models are the major aspects of intellectual resources’ role strengthening as the key factor of sustainable regional economic growth under decentralization. 
intellectual resources, intellectual property, regions, decentralization 

Repository of Institute of Regional Research UDC 339.13:330.123.4:332.122; JEL L10, L11, L51, L81
Popadynets, N. M. (2017). Rehional'nyy rynok spozhyvchykh tovariv: sutnist' i zasadnychi polozhennya funktsionuvannya [Regional consumer goods market: nature and fundamental basics of functioning]. Rehional'na ekonomika - Regional Economy, 83(1), 17-22. [in Ukrainian].

Sources: 10

During the last 25 years we’ve been the witnesses of explosive consumer market transformation. Reforming of its segments and emergence of competition led to the development of new trade forms and methods, public catering and consumer services and to the change of established principles and methods of enterprises management in the sphere. This sector of state economy develops rapidly along with the growth of internal and external investment inflows. Therefore, the research of consumer market is of utmost importance nowadays.
The article aims to outline conceptual basics of functioning of regional consumer goods market and to suggest its development directions on this basis.
The differences between the notions «consumer market» and «consumer goods market» are outlined. The nature of the notion «regional consumer goods market» is defined. The fact that functioning and development of regional consumer goods market has to be grounded on certain system of tasks, functions and methodological principles that resemble its major regular patterns is proved. The aim of consumer goods market functioning is defined as the maintenance of the opportunity of accessible by prices and other purchase terms meeting the needs of various social classes of population for consumer goods according to their purchase power. Major characteristics of regional consumer goods market are generalized. It is proved that saturation and capacity of consumer goods market depends on the efficiency of social and economic activity in the region, i.e. the higher the capacity, the more goods are produced and the higher are the wages and final consumption. The directions of development and organization of regional consumer goods market are suggested as following: creation of economic mechanism that maintains efficient interaction of regional consumer goods market entities and regional authorities; selection of organizational and economic forms of wholesale and retail trade, financial-credit and aftersale service, and organizational-legal forms of trade and economy intraregional and interregional links; forming of regional markets system on the basis of orientation at priority maintenance of consumers’ interests; selection of efficient channels of goods traffic and forms of spatial organization of consumer goods market for various types of regions; rationalization of trade and economic processes, goods, monetary and information flows and development of region’s market infrastructure. The fact that system and complex approach is necessary in order to implement defined directions of regional consumer goods market development. This system approach should be implemented in economic, social and organizational and legal fields. 

Repository of Institute of Regional Research UDC 339.138:332.1; JEL M31, R22
Fitel, O. I. (2017). Kontseptual'ni zasady marketynhovoyi diyal'nosti terytorial'nykh hromad [Conceptual basics of territorial communities’ marketing activity]. Rehional'na ekonomika - Regional Economy, 83(1), 23-29. [in Ukrainian].

Sources: 5

Repository of Institute of Regional Research UDC 332.135:[338.43:664.76](477.7); JEL O13, Q01, R11
Samofatova, V. A. (2017). Formuvannya zernovoho klasteru yak peredumova staloho rozvytku ahroprodovol'choyi sfery Pivdennoho rehionu [Forming of a grain cluster as an prerequisite for sustainable development in the agri-food sphere of the Southern region]. Rehional'na ekonomika - Regional Economy, 83(1), 30-37. [in Ukrainian].

Sources: 11

The article discusses peculiarities and consequences of the creation of a grain cluster in the Southern region of Ukraine. It is indicated that Ukraine is a leading exporter of grain. The natural resources potential of the Southern region of Ukraine is characterized as a basis for the development of a grain processing complex. The article aims to analyze the opportunities and formation of the conceptual scheme of grain cluster creation in the Southern region as a promising booster of sustainable development in the agri-food sphere. The methodology is based on a systematic approach and theoretical generalizations of researchers’ works regarding cluster development in agri-food sphere, analysis and synthesis in order to form a generalized scheme of the regional grain cluster, and SWOT-analysis. Significant educational and research potential of the region is shown. It is noted that sustainable development of the agri-food sphere of the region should aim at a balanced solution of ecological and socio-economic problems, while avoiding the destruction and depletion of natural resources, and at preservation and improvement of favorable environmental needs of present and future generations for high quality ecologically safe food products. The conceptual framework and the scheme of grain cluster formation in the agrarian sphere of the Southern region are outlined. SWOT-analysis of possibilities of grain cluster formation in the Southern region is conducted. It is concluded that the creation of a grain cluster in the Southern region will create a stable economic tie between individual participants and active cooperation between the regional authorities, specialized educational, research and business structures in the grain processing complex. It will also help to eliminate the shortage of raw materials for processing enterprises and shorten the cycle of innovation within the industry. It is shown that the establishment of a regional grain cluster will contribute to the sustainable development of the agri-food sphere of the region. The author believes that special attention must be paid to the development of a mechanism for the establishment and functioning of clusters and to assessment of the possibility of creating clusters in other leading sectors of the agri-food sphere of the region as well as diversified clusters. 
grain cluster, Southern region, agri-food sphere, sustainable development, SWOT-analysis 

Finance and Banking

Repository of Institute of Regional Research UDC [338.46:37]:37.014.543(477.8); JEL I22, R19
Benovska, L. Y. (2017). The peculiarities of financial provision of education in the Carpathian region in terms of administrative and territorial reform. Rehional'na ekonomika - Regional Economy, 83(1), 38-45.

Sources: 12

The peculiarities of funding of the educational sector from the local budgets in the Carpathian region were analyzed and the changes in management of educational sector, which were caused by the conduction of administrative and territorial reform in the country were found. It was emphasized that the result of the reforms should not be only the saving of financial resources, but also high quality of educational services for both tax payers and recipients of services. It was studied a new tendency of management of educational network – the creation of hub schools. The major problems of their formation were found: the discrepancy of boundaries of educational district with the boundaries of united territorial communities, the correspondence of the requirements for hub schools with the existing realities and other. The legislative changes during 2015-2017 in financing of secondary, vocational and technical education by means of appropriate subsidies from the state budget were analyzed and the main problem of financing were detected. 
education, financing, Carpathian region, reform, united territorial communities 

Repository of Institute of Regional Research UDC 336.14:353:332.122(477); JEL C63, H72
Voznyak, H. V. (2017). Otsinyuvannya byudzhetnoho zabezpechennya rozvytku rehioniv Ukrayiny na osnovi taksonometrychnoho metodu [Evaluation of budget provision of regional development in Ukraine on the basis of taxonomy method]. Rehional'na ekonomika - Regional Economy, 83(1), 46-52. [in Ukrainian].

Sources: 9

In this article the rating of the budget provision of Ukrainian regions has been evaluated basing on the calculation of Euclidean distances and grouping of indicators by budget status and balance, intergovernmental cooperation, budget stability and debt load. Using of the cluster analysis allows us to classify regions by integral indicator of budgetary provision into crisis, low, medium and high level. The analysis shows uneven budget distribution and confirms the need and timeliness of fiscal decentralization. The attention is on the first results of the reform of fiscal decentralization. It is shown that with the new changes to the Tax and Budget Codes financial stability of local budgets was strengthened, resulting in the growth of budget support demonstrated by almost all regions of Ukraine. It is proved that a high proportion of social spending in the minimum capital is not able to ensure economic growth in the region. The implementation of budgetary policy should be based on unleashing the potential of the regions, considering the fundamental principles of fiscal decentralization, especially in the empowerment of local governments to accumulation and effective use of development resources. The existence of certain patterns of implementation and budgetary policy of Ukrainian regions, caused by the influence of factors of exogenous and endogenous nature, has been highlighted. 
region, evaluation, budget provision, taxonomy method, Euclidean distance 

Repository of Institute of Regional Research UDC [336.14:352]:336.22; JEL E62, H22, H70
Patytska, H. O. (2017). Osoblyvosti formuvannya podatkovykh dokhodiv mistsevykh byudzhetiv v umovakh finansovoyi detsentralizatsiyi [Forming features for tax revenues of local budgets in terms of financial decentralisation]. Rehional'na ekonomika - Regional Economy, 83(1), 53-62. [in Ukrainian].

Sources: 9

In this scientific article the composition of tax revenues in local budgets is determined. Problems of the comprehensive characteristic of tax revenues categories are diagnosed. The position of communities’ funding in the reform of administrative and territorial structure of Ukraine is investigated. Problems of providing the local communities with financial resources in the process of the territorial development are diagnosed. The ways of strengthening the financial autonomy of municipalities are grounded. The basic changes in taxation of communities concerned with the reform of local government are studied. Amendments to the Budget Code of Ukraine and the Tax Code of Ukraine in the context of the administrative-territorial reform and the reform of fiscal decentralization are analyzed. The necessity of understanding the role and place of local communities in the development of local government is argued. The place and role of providing taxes to local budgets in forming the economic and financial potential of the area are investigated. The basic tools of tax revenues formation to local budgets are defined. The interdependence between the formation of tax payments and the level of economic development of the respective administrative-territorial unit is proved. Sources of the tax revenues to local budgets and their focus on supporting the budget expenditures are shown. As part of the major sources of the budget revenues the tax on economic activity, personal income tax, consumption of public goods taxation, property tax and the use of natural resources taxation are determined. The place and role of each tax payment in financial resources of local budgets forming is analyzed. It is determined that all incomes are included to the general fund of the local budgets. Accordingly, we are not talking about their targeted use to support certain budget expenditure. The priority of formation of the expenditure policies of local governments is proved. The basic factors that influence the mobilization of revenues from taxation are analyzed, such as: the number and potential of business entities development, the level of the shadow sector extent, investment attractiveness. The necessity of achieving financial viability in order to accomplish the basic functions conferred on local authorities by the state is grounded. It is proved that the income tax is a leader in formation of financial resources of local budgets. The role of local taxes and fees in the system of tax payments to local budgets is determined. It is shown that the legislative innovations are not able to ensure decentralization. Changes to the determination and administration of tax payments to local budgets are proposed. Attention is paid to insufficient tax revenues in the financial resources of local governments. It is concluded that the community development at the local level is possible only when the correct public and local government policies are formed, basing on the fiscal capacity of communities. 
tax revenues of the local budgets, tax viability, sources of tax revenues 

Cross-Border Cooperation

Repository of Institute of Regional Research UDC 332.135:339.92:[339.137:332.122]; JEL R1, B41, R5
Kovalenko, S. I. (2017). Externalities of cross-border cluster systems as a factor contributing to Euroregions’ competitiveness. Rehional'na ekonomika - Regional Economy, 83(1), 63-71.

Sources: 15

The work is dedicated to research of externalities, positive effects of a meso-level of international integration formations represented by network structures of intra-industrial and inter-industrial cooperation in a form of cross-border cluster systems.
Major objectives of the work are, as follows: to prove statement, that international integration schemes in the form of cross-border clusters generate positive externalities which catalyze euroregional competitiveness; to apply newer approaches to revealing and systematization of cluster externalities; to emphasize special part played by network externalities and effect of «knowledge spill-over» within the cluster framework being of utmost importance for formation of cross-border cluster systems and increasing their competitiveness. Basing on the above research it seems reasonable to formulate specifics of cluster model in cross-border cooperation as the most adequate in modern conditions of global economy development and current stage of integration of Ukraine in general and, in particular, within the framework of the EU economic space. 
externalities, synergy effect, cross-border cluster system, European integration, euroregion, innovations, competitiveness 

Foreign Experience

Repository of Institute of Regional Research UDC 338.45:339.56(477)(438); JEL L60, O57
Ishchuk, S. O., & Sozanskyy, L. Y. (2017). Promyslovist' Ukrayiny i Pol'shchi: porivnyal'na otsinka konkurentnykh perevah [Industry of Ukraine and Poland: comparative assessment of competitive advantages]. Rehional'na ekonomika - Regional Economy, 83(1), 72-81. [in Ukrainian].

Sources: 11

The implementation of a free trade area between Ukraine and the EU member states actualizes cross-border comparative assessments for identifying the competitive advantages of the industrial sector of national economy. Such assessment is correct for the industry of Ukraine and Poland as neighbors, similar in many socio-economic characteristics. The goal of the article is to compare the competitive advantages of industry of Ukraine and Poland at the national and regional levels according to the system of indicators characterizing the efficiency and activity of industrial enterprises. By integrating the set of primary indicators reflecting production, economic and resource efficiencies, as well as economic, industrial, technological, innovation, investment and export activity of industrial enterprises, the corresponding indices, which together determine the competitiveness of the industrial sector, were calculated. The analysis of general integral index revealed that the competitiveness of Polish industry in all the years of analyzed period (2011-2015) was higher than of that of Ukraine industry. This gap became the largest in 2014 (0.956 points), but in 2015 was reduced to a minimum (0.009 points). The latter reflects a significant intensification of industrial activity in Ukraine. This applies to border regions too. Thus, in 2015 (after a sharp drop in 2014) the gap between the levels of industrial competitiveness of Podkarpackie province and Lviv region increased significantly in favor of the latter and made up 0.092 points (in 2013 the gap was 0.048 points). The largest growth in Lviv region was showed by indices of resource efficiency – labor productivity (1.84 times), assets productivity (1.6 times) and manufacturing activity, i.e. the growth rate of industrial product sales (5.45 times) and the share of industrial products in the volume of sales (1.49 times). Instead, the profitability and innovation activity of industrial enterprises in Lviv region are completely unsatisfactory (and in Ukraine as a whole). As a result, many domestic producers are non-competitive on foreign markets today. To solve this problem, it is necessary on the one hand, to improve macroeconomic conditions for the operation of industrial enterprises in Ukraine towards promotion of domestic demand for domestic industrial products and of its supply increase, as well as towards improvement of quality management system for industrial production and acceleration of international certification of enterprises, and on the other – to increase the efficiency of investment and the level of implementation of the innovations into production. 
industry, competitive advantages, activity, efficiency, integral indices 

Repository of Institute of Regional Research UDC 332.1:330.341.4:316.422(438); JEL O20, O38
Prokopiuk, A. (2017). Prohramni instrumenty strukturnoyi modernizatsiyi ekonomiky rehionu: dosvid Skhidnoyi Pol'shchi [Program instruments of regional economy structural modernization: the Eastern Poland experience]. Rehional'na ekonomika - Regional Economy, 83(1), 82-89. [in Ukrainian].

Sources: 17

The fact that regional structural policy is one of the decisive factors of overcoming the existing structural disproportions and maintenance of sustainable economic growth is emphasized. Considering the efficiency of structural processes in Polish economy, the article aims to examine the mechanisms of regional structural policy implementation at the meso-level in order to develop recommendations for Ukraine in terms of implementation of the best examples of Polish experience in this sphere.
Special attention is paid to the fact that program instruments directed at the development of entire macro-regions are in the basis of regional structural policy implementation in Poland. The programs of Eastern Poland development are successful examples of this approach application, in particular the special operational program «Development of Eastern Poland» elaborated for 2007-2013 and 2014-2020. The major objective of the Program is to accelerate the paces of Eastern Poland socio-economic development on the basis of sustainable and well-planned development through active investment into major economic powers. The Program is directed at implementation of the following tasks in the second period: promotion of research in the sphere of technological innovations; competitive ability strengthening of small and medium enterprises, agrarian sector and fishing and aquaculture; maintenance of transition to low-carbon economy in all spheres of economy; promotion of transport and infrastructure sustainable development.
Conducted research showed that the implementation of the Program had contributed to the growth of competitive ability level in the Eastern Poland during recent years, even comparing with the EU indicators. At the same time, European Funds and not the Polish government remained to be the major donor of regional Policy development in Poland, in particular ERDF and Cohession Fund. This testifies to the EU interest in establishment of economic life at the Eastern EU surroundings and creation of powerful infrastructural basis there (transport, engineering, innovation, information), which can become some sort of economic border maintaining EU economic security. 
structural transformation of economy, region, regional structural policy, structural modernization instruments, program 

Economics and National Economy Management

Repository of Institute of Regional Research UDC 331.101.262:005.336.3:332.1; JEL J01, B41, D11
Sadova, U. Ya., & Stepura, T. M. (2017). Yakist' lyuds'koho potentsialu v metodolohichnykh vymirakh enerhetychnoyi paradyhmy [Human capacity quality in methodological dimensions of energy paradigm]. Rehional'na ekonomika - Regional Economy, 83(1), 90-97. [in Ukrainian].

Sources: 9

The article attempts to build methodology of the regional human potential quality. The basic principles of social and regional economics and also the theory of consumption and energy paradigm are the theoretical basis of research. It is indicated that the human potential quality as a set of features of not used reserves of human resources should be studied by using a systematic and structured approach. This necessitates a separation of personal and active sections of the regional human potential quality, and in the personal context – the selection of separate levels of sociogenesis. It is determined that such levels are the human body, individuality, personality. Quality is formed on each of them and each next qualitative state of the system occurs in case when the processes on all levels are synchronized. It is emphasized that geostructural approach to the study of the regional human potential quality determines the need to consider this category under the consition of systematic involvement in its formation environment. This approach allows researchers to focus on regional features of setting energy in the human body, and to establish patterns of energy redistribution in the economic activity process and its concentration in the form of economic benefits. It is indicated that all the cycles of human development are accompanied by energy transfer processes. Within the personal approach the extensive sources concern the inflow of energy from outside, and intensive – the efficiency of its use. The inflow of energy from outside on the level of human body is provided by biological processes, where the main one is nutrition. The role of nutrition in the complex process of regional human potential quality formation within the energy paradigm development is proved in the article. In terms of apractice the importance of a balanced diet in shaping health as one of the key components of regional human potential quality is proved. The concept of energy balanced nutrition includes not only its composition in terms of nutrients and other components, but also compliance of diet with the way of person’s life, activity, and the content and type of work. It is established that the diet of the population of Ukraine in terms of its energy balance does not meet the needs of the human body to ensure the health, efficiency, physical activity and work, and requires complex regulation based on regional features. Public policy measures should be aimed primarily at growth of income in Ukraine. However, the development of state standards in food sector should concern not only the settlement of the balance between the energy content of the diet and the nature of work, but also regionalization of standards values, its implementation in society’s life practice. 
human potential quality, energy paradigm, the theory of consumption, personal approach, applicative approach, energy transfer, the energy content of the nutriton, balanced nutrition 

Repository of Institute of Regional Research UDC 332.133.6(477); JEL O14
Oleksyuk, H. V. (2017). Industrial'ni parky Ukrayiny: vid kontseptsiyi do real'nosti [Industrial parks in Ukraine: from concept to reality]. Rehional'na ekonomika - Regional Economy, 83(1), 98-105. [in Ukrainian].

Sources: 17

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 

Repository of Institute of Regional Research UDC 331.105(477); JEL J59, L29
Shyshkina, O. O. (2017). Znachennya sotsial'noho partnerstva u zabezpechenni hidnoyi pratsi v Ukrayini [The importance of social partnership for providing a decent work in Ukraine]. Rehional'na ekonomika - Regional Economy, 83(1), 106-112. [in Ukrainian].

Sources: 9

The importance of social partnership for maintenance of decent work based on the benefits of dialogue for all the parties in labour relations is emphasized. The indicators of the decent work deficit in Ukraine that testify not only to a decrease in the level of employment, but also to the loss of labor potential are suggested and analyzed. The role of social partnership in overcoming the crisis situation in the labour sphere is determined and the representation of the parties of labour relations in the regional context is studied. The author makes conclusions regarding the lack of development of employers’ institutions because of their low motivation for labour relations, and low quality of trade unions activity due to employees’ mistrust and often formal nature of operation. The need for further development of social partnership in Ukraine in both quantitative and qualitative context is emphasized. The tools for the dissemination of decent work are suggested, including the formation of an effective information space of social partnership regarding the expression of the interests of the parties and the exchange of good practices and monitoring of all collective agreements and contracts on compliance with the principles of dignity and priority in the allocation of public and social investment to employers for decent work. The benefits of providing labour on the principles of dignity for the parties of social partnership are systematized. 
social partnership, decent work, social dialogue parties, trade unions, employers’ organizations 

Repository of Institute of Regional Research UDC 336.2+336.5; JEL E25
Zablotskyy, M. B. (2017). Rehulyuvannya balansu natsional'nykh vytrat i natsional'noho dokhodu [Regulation of balance of national expenditures and national income]. Rehional'na ekonomika - Regional Economy, 83(1), 113-119. [in Ukrainian].

Sources: 11

The problems of balance of national expenditures and national income are considered. It is emphasized that the gross domestic product (GDP) is the best indicator for modeling of the balance condition of the economy in general. Emphasis is made that GDP is both the volume of production expenditures and the volume of revenue from production in the economy. It is noted that the volume of national expenditures is formed by the population costs on consumer goods and services and companies’ costs on material resources for producing of goods and services. GDP in the real (physical) and nominal (monetary) forms as a key parameter for model of income and expenditure balance is grounded. It is indicated that the two forms of GDP are functioning simultaneously, and the government of Ukraine is the regulator of physical volume, and National Bank of Ukraine is the regulator of the amount of money. The article proves that when the balance of national expenditure and national income rates is achieved, the prices, fares and money turnover are the same. The prevalence of physical GDP above nominal GDP indicates the imbalances and price increase, and the predominance of physical GDP above nominal GDP shows the imbalances and decrease of prices. The estimation of the volume and dynamics of the both forms of GDP in Ukraine is made and their imbalance in time is found: nominal GDP dominates over real GDP. The dynamics in the form of indices of physical and monetary GDP imbalance model in Ukraine is presented: Iq: Ip ? Iv: Im, where Iq is the index of physical GDP, Ip is the index of unit price of physical GDP, Iv is the index of turnover of money GDP, Im is the index of monetary GDP. The left side of the model expresses the dynamic of potential costs formed by asynchronous movement of goods and services volume and the unit price of goods and services, and the right part expresses the dynamics of the actual national income and demand for money. The calculated ratios of indices show inertia, which expresses high rates of annual growth in national spending and demand for money, and therefore the budgets of most of individual households, businesses and government will become insolvent. General conclusions on regulator of monetary and physical products are made. National Bank of Ukraine should reduce the volume of money in circulation and Ukrainian government should reduce employment in the public sector, especially in the governance, and increase investment volume in order to maintain the production growth of GDP physical volume. 
balance, investment flows, national expenditures, national income, management 

Repository of Institute of Regional Research UDC 332.15:334.722; JEL P25, R32, R58
Yaskal, I. V. (2017). Pidkhody do vymiryuvannya prostorovoyi lokalizatsiyi pidpryyemnyts'koyi diyal'nosti [Approaches to measuring the spatial localization of business]. Rehional'na ekonomika - Regional Economy, 83(1), 120-128. [in Ukrainian].

Sources: 25

The article is devoted to the evaluation of business activities localization. Ukrainian scientific literature contains some aspects of considered issues. The most used indicator that allows evaluating the concentration of business activity is the localization coefficient. Author interpretation of the term «localization of business activities» has been suggested, it means process of concentration of business activity in certain points (or areas) of space, which are characterized by a high level of involvement in national and international networks of production, exchange and consumption. Increased attention to the study of the localization has been generated by the need of responding to the changes caused by the global economy. A review of the literature has been carried out about the methodological approaches to measuring the spatial localization of business activities. The potential use of these techniques in Ukrainian realities has been assessed. The strengths and weaknesses of each method have been considered. It has been shown that the next approach had an aim to neutralize the shortcomings of previous developments, as well as to take into account the existing features of the placement of business activity in space. As a result, many different methodological approaches to the evaluation of localization of economic activity are currently available, including modifications. The variety of approaches to measure the spatial location of business activities should be explained by the complexity of the investigated phenomenon, especially at current stage when scientists permanently discover previously unknown factors of the concentration in a particular place. The necessity of implementing them in a systematic monitoring process of spatial localization has been underlined. This will create the basis for regulation of these processes. Measurement of localization at the regional level allows, firstly, identifying the causes of uneven economic development, and accordingly developing of adequate instruments of these phenomena regulation (or mitigation of adverse effects). Secondly, through assessment, regulation and forecasting of business localization local authorities can influence the structure of the regional economy. 
localization of business, localization coefficient, Gini coefficient, EG-index, D-index, distance-based methods, regulation of business localization 


Repository of Institute of Regional Research UDC 332.15:330.3
Amosha, O. I. (2017). Perspektyvy rozvytku velykykh mist Ukrayiny v konteksti suchasnykh vyklykiv metropolizatsiynykh protsesiv [Prospects for the development major cities of Ukraine in the context of current challenges of metropolisation processes]. Rehional'na ekonomika - Regional Economy, 83(1), 129-130. [in Ukrainian].

On the book: Metropolitan functions of large cities of Ukraine: development potential and prospects of implementation / Institute of Regional Research n.a. M.I. Dolishniy of NAS of Ukraine; Sci. Ed. M. I. Melnyk. - Lviv, 2016. - 552 p. (Series: Problems of regional development). 

Repository of Institute of Regional Research UDC 332.1:33.025(477)
Varnaliy, Z. S. (2017). Osoblyvosti rehional'noho rozvytku v konteksti zmitsnennya ekonomichnoyi bezpeky Ukrayiny [Features of regional development in the context of economic security strengthing for Ukraine]. Rehional'na ekonomika - Regional Economy, 83(1), 131-133. [in Ukrainian].

On the book: Bilyk R. R. Determinants of regional development in terms of economic security of Ukraine: monograph / R. R. Bilyk; Institute of Regional Research n.a. M. I. Dolishniy of NAS of Ukraine. - Lviv, 2016. - 352 p. (Series: "Problems of regional development"). 

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