Scientific and practical journal
Regional Economy

Regional Economy -- Year 2017, Issue 2(84)

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Regional Policy and Territorial Development

Repository of Institute of Regional Research UDC 338.24.021.8; JEL O20, R58
Symonenko, V. K. (2017). Reformy: administratyvno-terytorial'na, administratyvna i detsentralizatsiyi – tryyedyni [Administrative-territorial, administrative and decentralization reforms are triune]. Rehional'na ekonomika - Regional Economy, 84(2), 5-9. [in Ukrainian].

Current condition and major problems of administrative and administrative-territorial reforms implementation in Ukraine are outlined. Actions of executive and legislative authorities in Ukraine in terms of conducting the abovementioned reforms are analyzed. On this basis the following facts were proven: the entire previous process of reforms conducting was reduced to solution of decentralization issues and voluntary automatic creation of combined communities; not the main reforms are implemented (administrative and administrative-territorial), but rather а spotted sectoral reform; decentralization by itself conducted according to nowadays patterns does not solve anything fundamentally. The drastic change of approach to elaboration of reform strategy and to selection of targets achievement ways is suggested. As a rule without exceptions, this should be our own domestic product with consideration of historic and political heritage as well as economic and demographic condition. This is why the level of local municipal management in each European country fundamentally differs by its institutional structure, volumes, scope of liabilities and number of management levels. Major recommendations on implementation of administrative and administrative-territorial reforms are suggested. The author proves the fact that these reforms’ final goal should be the creation of modern state management and regulation system, with local self-governing being one of its subsystems as the bottom and especially democratic subtype of state management. 
administrative reform, administrative-territorial reform, decentralization, local self-governing, territorial communities 

Repository of Institute of Regional Research UDC 331.5.021:332.021:005.96; JEL J21, O15, R23
Miklovda, V. P., Pityulych, M. I., & Hoblyk, V. V. (2017). Ekonomichna bezpeka rehionu: trudoresursnyy kontekst [Economic security of the region: human resources context]. Rehional'na ekonomika - Regional Economy, 84(2), 10-15. [in Ukrainian].

Sources: 11

Elaboration of the system for diagnostics of economic security of the territories at different levels refers to a relatively new and methodically unsolved problem. But its relevance increased significantly for the last time period. This is mainly due to the social, economic and political transformations in the country, in-depth content of which is the commitment of Ukraine to being an equal member of the European community, entry into the world economy, and regionalization of the economy, associated with development of the local government, transition to the market regulation, expansion of the management system’s subjects by the formation of territorial communities and their self-sufficiency increase.
Approaches to risk management at the regional level in the sphere of social and labor relations are substantiated. Special attention is devoted to the study of possible risks in the demographic development, migration processes and employment in Zakarpattia Oblast. The main reasons, generating prerequisites for risks’ occurrence in terms of the forms of their manifestation on local labor markets, are considered. On the basis of the performed analysis, structuring of probable threats and outlining of approaches to the formation of the risk management mechanism are presented.
It is defined that evaluation of risks in the sphere of social and labor relations indicates the spatial relation, which means their consideration as complex object-subject phenomena characterized by local peculiarities and forms of manifestation, and determined by uncertainty, ambiguousness and multi-factor character of those risks. This circumstance contributes to specificity of the mechanism for risk management, which instruments are directed on taking preventive measures by impact on cause-and-effect relations, their appearance, occurrence and blocking. 
security, risks, region, social and labor relations, management mechanism 

Repository of Institute of Regional Research UDC 330.322:338.24:352; JEL O16, R53
Zhuk, P. V., & Siryk, Z. O. (2017). Investytsiynyy potentsial terytorial'nykh hromad: sut' ponyattya ta pytannya upravlinnya [Investment capacity of territorial communities: nature of the concept and management issues]. Rehional'na ekonomika - Regional Economy, 84(2), 16-22. [in Ukrainian].

Sources: 15

Analysis of scientific approaches to interpretation of investment capacity is conducted. Definition of the term «investment capacity of territorial community» is suggested. Special attention is paid to its specific features – concrete territorial context and dependence on peculiarities of local natural, social, economic and other factors and on the efficiency and adequacy of territorial management bodies’ activity directed at the use of community’s investment capacity. The structure of territorial community’s investment capacity is examined and its major components are outlined: natural conditions and resources, raw materials base, human resources, economic base, financial resources, investment climate and scientific, technological, innovative, institutional, infrastructural and management maintenance. The problems of forming and exploitation of territorial communities’ investment capacity are emphasized. Low management capacity and promotion activity of local governing bodies, absence of efficient incentives for investors and poor quality of local development programs are among them. The scheme of investment capacity management mechanism at the level of territorial community is suggested in order to outline the directions of management influences of local governing bodies on implementation of territorial communities’ investment capacity. 
investment capacity, territorial community, local governing bodies, management influence, management mechanism 

Economics and National Economy Management

Repository of Institute of Regional Research UDC [338.46:37]:330.34; JEL I28, O15
Zahorskyy, V. S. (2017). Osvita yak vyznachal'nyy faktor zabezpechennya staloho rozvytku natsional'noyi ekonomiky [Education as a decisive factor in ensuring sustainable development of the national economy]. Rehional'na ekonomika - Regional Economy, 84(2), 23-30. [in Ukrainian].

Sources: 6

The problem of human and social capital formation is closely connected to the functioning of the education system. From the standpoint of a system approach, education is a functional institution of a society, which has its own structure and specific aim of functioning. The complication of social and manufacturing, information and intellectual relations in the processes of civilization development generates increased requirements for the functioning of social and industrial subsystems, which can be solved only by means of education.
The functioning of the education system is not just the transfer of knowledge and the development of a person, but also the intellectual support of socio-economic development. Educational functions play a key role in the pace of civilization progress in the nearest future. In the context of sustainable development, an important moment in the role of education is that knowledge has the ability to grow and deepen. As a result, education carries out the transfer of knowledge to the next generation, which provides for a progressive development of future generations. Today, education is seen as a continuous process that lasts throughout life and is characterized not only by the replenishment of the information stock, but by the change in its structure and forms in accordance with the new requirements.
From the point of view of economic development, education is the source of creating new opportunities and resources for development that significantly changes the quality of human life, ensures the achievement of harmony of natural, social and spiritual human nature. Knowledge and information allow achieving the set goals, minimizing the resources, convincing people of their personal interest for these purposes. According to some estimates, today in the world about 70% of gross domestic product (GDP) growth is due to the application of new knowledge embodied in innovative production and management technologies.
Knowledge as a special resource of social development has the properties of continuous reproduction and accumulation. However, like any resource, knowledge is prone to destruction, impoverishment and, moreover, unlike natural resources, the usefulness of which is beyond doubt, the usefulness of knowledge may be questionable. This happens when knowledge (in the context of education problems) is considered and analyzed as a narrow category that involves only professionalism, in isolation from the morality of the subject (individual or organization) – the bearer of knowledge.
Today the rates of obsolescence of knowledge grow; the life cycle of goods (services) is reduced. Companies gain advantages in a competitive struggle by creating strategies that focus not on predicting and analyzing the external environment, but, above all, on the efficient increasing and using of their own resources, primarily intellectual ones. It is obvious that intellectual activity cannot be performed without fundamental knowledge, i.e. the knowledge necessary for the education of a graduate of an educational institution, which allows forming a valuable-meaningful system for orienting a person in the flows of information. 
education, knowledge, human capital, resource, development, economics 

Repository of Institute of Regional Research UDC 338.242:336:[338.46:378]; JEL I28, O15
Kuzmin, O. Ye., & Yastrubskyy, M. Ya. (2017). Chynnyky zabezpechennya yakosti derzhavnoho upravlinnya osvityans'koyu diyal'nistyu VNZ [Factors of providing the quality of public administration of educational activity in higher education]. Rehional'na ekonomika - Regional Economy, 84(2), 31-38. [in Ukrainian].

The article investigates the factors that ensure the quality of governance of educational activities in higher education. It is grounded that there are objective reasons why higher education requires constant updates and changes, the effectiveness of which depends on the national education policy and governance.
Domestic and foreign researchers highlighted some aspects of public administration in high schools, but did not go deep with causation and did not introduce their fundamental understanding.
The motivation for conducting this study lies in the need to systematize and classify the factors that can ensure good governance of educational activities in higher education.
The paper provides literature review on clustering and systematizing the factors highlighted in different approaches, which have been developed by scientists. The list of tasks set by the authors includes elaboration of an approach to solving the problem.
The article reviews the main systems of high school’s management, including national, represented as a list of factors that are manifested in the quality characteristics of public administration of educational activities.
Classification scheme to systematize factors that ensure the quality of governance educational activities in higher education based on domestic and foreign experience is offered in the article.
The article describes the main characteristics of educational policies that are typical for some countries because of different levels of economic development. It can be evidenced through government regulations. The article describes the main challenges facing higher education.
The proposed systematized factors are observed taking into account their interrelation and thus they can provide the expected effect in case of optimal combination and skillful use. Effective use of factors in state regulation is evidenced by the implementation of motivational factors. Factors of government regulation are in close relationship with environmental factors. The authors conclude that there is need to change the approach to management of high schools’ educational activities, taking into account factors of social development.
The proposed systematization of factors, which ensure the good governance of high schools’ educational activities, has been designed by the authors based on the study of positive domestic and foreign experience. When building the optimal model of public administration of educational activities in higher schools the updated classification of factors should be taken into account. 
factors, public administration, higher education, educational activities, education quality, relevance, experience, classification 

Repository of Institute of Regional Research UDC 336.14(477); JEL E62, O18, R58
Vlasyuk, O. S. (2017). Reforma byudzhetnoyi detsentralizatsiyi v Ukrayini: rezul'taty, ryzyky ta perspektyvy [The Reform of budget decentralization in Ukraine: results, risks and perspectives]. Rehional'na ekonomika - Regional Economy, 84(2), 39-45. [in Ukrainian].

The system of budget decentralization risks in Ukraine is defined. Major problems of budget decentralization are outlined as following: unbalance of local budgets’ income and expenses due to the lack of sources to cover the liabilities transferred to the local budgets; absence of social standards and criteria on liabilities set and delegated by the state to local self-governing bodies in descriptive and value terms; violation of social justice principle in terms of repayment of privileges approved by Verhovna Rada of Ukraine; initiative on elimination of excise tax on retail trade in excisable goods; unfinished process of territorial communities combining stipulates additional burden in terms of budget system balancing. The ways to improve the mechanisms of budget regulation for maintenance of further accomplishment of budget decentralization reform’s tasks and achievement of its goal are suggested. The major directions are: development of state social standards; maintenance of correspondence between local budgets’ financial resources and the delegated liabilities; assurance of social privileges targeting; improvement of local taxes and fees efficiency; maintenance of inter-budgetary relations efficiency; solution of the issues on debt repayment of State Budget on Privileges and Subsidies; assurance of sectoral decentralization in the health care sphere; maintenance of sectoral decentralization in the educational sphere; provision of budget costs’ efficient management. 
budget decentralization, expenses, income, local budgets, local self-governing bodies 

Repository of Institute of Regional Research UDC 338.45:620.91; JEL O13, L94
Telyuk, K. F., Bilokrynytska, M. S., & Kravchuk, V. I. (2017). Enerhozberezhennya yak skladova systemy vdoskonalennya suspil'noho vyrobnytstva [Energy saving as a component of the system of improving social production]. Rehional'na ekonomika - Regional Economy, 84(2), 46-54. [in Ukrainian].

Sources: 12

The article investigates current state of the national energetic safety and describes the most effective ways of its improvement in Ukraine. Development of energy sector has impact on economy of the country and on living standards. There is a range of different problems in this sphere, such as distorted structure of energy manufacturing and consumption, slow implementation of energy saving technologies and lack of proper legal regulation in energy sector. Improvement of energy sphere in Ukraine is one of the most urgent problems nowadays. Energy conservation has been determined as important part of improvement of social production. Problems of energy sector in economy of country have been revealed. Legal regulation and strategy of improvement in this sphere have been reviewed. Dynamics of energy consumption in different sectors of economy during the years 2015-2016 in Ukraine have been analyzed. Data on tariffs of energy supply during the years 2005-2015 in Lviv region have been analyzed. The dynamics of energy consumption during the years 2004-2014 in Lviv region have been examined. Correlation between tariffs on energy supply and the volume of energy consumption has been observed based on mathematical methods. The structure of energy consumption in different sectors of economy in Lviv region during the years 2000-2015 has been analyzed. Projects that encourage energy saving of Lviv region have been defined. The international experience of European models of energy effectiveness and models of energy effectiveness that can be used in Ukraine has been shown. The basic problems in energy saving which have to be solved in the future have been explored. The ways of improvement effectiveness of energy safety in Ukraine have been determined. 
energy sphere, energy consumption, energy saving, energy strategy, energy effectiveness, tariffs of energy consumption 

Repository of Institute of Regional Research UDC [338.23:336.74]:338.439; JEL Q14, Q18
Pruntseva, G. O. (2017). Vplyv monetarnoyi polityky derzhavy na systemu prodovol'choyi bezpeky [The impact of monetary policy of a state on food security system]. Rehional'na ekonomika - Regional Economy, 84(2), 55-61. [in Ukrainian].

Sources: 9

A necessary condition for effective functioning of food security is the stability of national currency. The value of the currency has an impact on food prices. The value-reasonable prices is a key prerequisite for economic public access to life-saving food. Many prominent scientists have dedicated their works to the research of the problem. A. Babenko and L. Abramovskiy focus on the need of increase of the money supply. The authors point out that increase in the money supply will intensify the activity of small and medium business, which produces the agricultural products. L. Chernychuk underlines the importance of the impact of currency value on the price level. The author notes that the value of the currency is constantly changing and this affects the general price level in the economy. Existing studies substantiate the presence of an effective mechanism for regulation of the impact of current monetary policy system on food security system. However, the development of economic relations and integration processes of the country in the context of globalization necessitate improvement of the existing mechanism for regulation of the impact of current monetary policy system on food security system.
The article is devoted to assessment of the impact of current monetary policy system on food security system in Ukraine. We analysed the effect of monetary policy on food security system. We have established the impact of monetary policy on public access to food. Monetary policy affects the level of consumer prices by controlling inflation. As a result of correlation and regression analysis we established the existence of a direct relationship between the size of average rates of the money supply and the volume of agricultural production. 
food security, state policy, size of money supply 

Social Policy

Repository of Institute of Regional Research UDC [338.24:316.4]:[351:364]; JEL D63, F52, H53
Halytsya, I. O., & Hetman, O. O. (2017). Stanovlennya mekhanizmu sotsial'noyi bezpeky: naukova determinatsiya [Social security mechanism formation: scientific determination]. Rehional'na ekonomika - Regional Economy, 84(2), 62-72. [in Ukrainian].

Sources: 20

The author studied the genesis of the «social security» concept in domestic and foreign practice. Features of the European and American models of social security providing are considered; historical analysis of their formation is conducted; advantages and disadvantages of these concepts are defined in this article. Specific features have been defined and analysis of the existing mechanism for ensuring social security in Ukraine on the basis of its legal basis has been carried out. Economic and statistical analysis of scientific works of Ukrainian scientists dedicated to development of mechanisms for strengthening social security has been conducted; application perspectives of scientific achievements of Ukrainian scientists in sustainable social development maintenance has been identified.
During study author used the following methods: dialectical method – to disclose the theoretical and methodological foundations of the category «social security»; historical method – to describe the stages of social security mechanisms in the European and American models; systemic and structural methods – to determine the scientific interest in the social security problems at the national level; statistical and economic analysis – to process statistical data in order to determine the scientific interest of Ukrainian scientists to develop the fundamentals of social security ensuring; graphic method – for illustrations of the study’s results.
The author found the obvious movement of Ukraine to the European model of social safety. It is necessary to use predominantly scientific achievements of Ukrainian scientists to develop components of subsystems for current mechanism to provide social security to restore the logical chain of the events in the system sequence, i.e. «social quarantines > security obligations > social welfare > social security». 
social security, ensuring mechanism of social security, scientific determination 

Repository of Institute of Regional Research UDC 331.556.4:314.748:001.891; JEL O15, F22, H00, R23
Bil, M. M. (2017). Efektyvnist' mekhanizmu rehulyuvannya mihratsiyi naselennya: teoretyko-metodychni osnovy otsinyuvannya [The effectiveness of regulation mechanism of migration: theoretical and methodological foundations of assessment]. Rehional'na ekonomika - Regional Economy, 84(2), 73-79. [in Ukrainian].

Sources: 10

The relevance of the theoretical and methodological foundations of assessment of the effectiveness of regulation mechanism of migration was justified in the article. The main global migration processes trends, which confirm the rapid growth of population spatial mobility and create new challenges to regulation of migration, was given. The essence of regulation mechanism of migration, which is a system by systematic approach that ensures the impact of the subject in the face of governmental and nongovernmental organizations and migration market actors on migration processes in order to achieve the objectives, was defined. The component structure of the mechanism was reflected. It’s formed by goals, objectives, principles, functions, subjects, objects, methods and forms of state regulation, which causing migration policy in their interaction and relationship. The essence of effectiveness, which is considered from the standpoint of «cost-benefit» and «goal-outcome» in the economy, was defined. The complexity of assessment of the effectiveness in public administration was noted, because there is no single indicator of outcome in public sector, which is the income for commercial structures. Despite these difficulties, the assessment of the effectiveness of the regulation mechanism of migration requires the formation of the monitoring system for regularly receiving different quantitative and qualitative data, analytical materials and expert evaluations. Main approaches to determine the effectiveness of the regulation mechanism of migration were discussed. Their selection allows finding the effectiveness types. These types are economic, objective, organizational, functional, subject, object effectiveness, effectiveness of result and relationships. The highest practical value is assessment of result effectiveness. This approach requires the quality methodological developments and allows estimating the consequences (social, economic, ecological etc) of regulation mechanism of migration and migration potential (determining the factors of population migration as objects of indirect regulatory influence). The specific indicators should be the basis of assessment of the result effectiveness. They are determined depending on the migration situation. The main levels of assessment of the effectiveness of regulation mechanism of migration were described. 
regulation mechanism of migration, effectiveness, result effectiveness, migration potential, levels of assessment of effectivenes 

Ecological Policy and Nature Management

Repository of Institute of Regional Research UDC 330.113:351.777.613:338.24; JEL O10, O13, P41, P49, Q32
Kolodiychuk, I. A. (2017). Zasadnychi pryntsypy formuvannya systemy povodzhennya z vidkhodamy [Fundamental principles of forming the waste management system]. Rehional'na ekonomika - Regional Economy, 84(2), 80-88. [in Ukrainian].

Sources: 8

Development of a system should be based on the relevant fundamental principles that are the basis of its elements’ interrelation. In the waste management system the principles form the basis for the main reference points in the process of legal environment formation by the system’s greater control section. These principles also determine the requirements for building an effective institutional structure and the outlined policy implementation at all levels of management hierarchy. In addition, the basic principles should underlie the internal believes of each person and form his/her daily behavior, that is they should be understandable and acceptable by every member of the society. In this context, a technical version of the project on the National Strategy for Waste Management offered by the Ministry of Ecology and Natural Resources makes up a certain scientific interest for us. The review of the formulated guiding principles gives reasons to refine and detail them and expand their list considering the critical importance of the National Strategy for Regional Development and having in view the environmental problems layer that already exist in Ukraine. The article aims to form the principles of waste management system, based on the project proposals and author’s supplements with the appropriate interpretation for intended use. The author emphasizes that comprehensive fundamental and applied research in theoretical and empirical levels should be based on both legislative and executive functions in the waste management and treatment. Therefore, it is unacceptable to neglect the role of science in the system of waste management development. Promoting the ecologically safe technologies of production, implementation of the effective waste management schemes, creating a legal framework for administrative action and providing service for all the participants in social and economic relations –these are the main actions on the principle of ecologization. It is claimed that state institutions play a significant role in forming social responsibility of a manufacturer along with its own environmental awareness. The high cost of environmental effects requires the implementation of the intended measures to prevent them, which requires taking into account the principle of their cause and effect assessment. Strategically important vector of the waste management development is its focus on alternatives for their use based on the implementation of innovative achievements of the scientific and technological progress, harmonization of material and provision parameters – information and financial flows, taking into account the value of each elementary operation (transportation, storage of waste, recycling etc.) and others. 
principles, waste management system, waste generation, waste utilization 

Rural Development

Repository of Institute of Regional Research UDC 658.6/.9:[332.122:338.43]:351; JEL O13, Q13
Apopiy, V. V., & Apopiy, H. V. (2017). Stratehichni priorytety rozvytku torhivli v sil's'kiy mistsevosti [Strategic priorities for trade development in rural areas]. Rehional'na ekonomika - Regional Economy, 84(2), 89-97. [in Ukrainian].

Sources: 11

Trade in rural areas has extended significantly and now occupies a special place in the social sphere and multifunctional rural economy In Ukraine. However, the nature of its development, the efficiency of functioning and the level of competitiveness do not correspond to perspective transformations in rural areas and global trends in the development of the agrarian sector. Trade in the countryside is developing unsystematically, in a deformed and contradictory way. The key reason for such a situation is the lack of modern fundamental research in this direction and the uncertainty of strategic priorities for its development.
The above mentioned objectively gives relevance to the problem of strategic development of rural trade on a scientific basis within the framework of modern concepts, programs and effective trade policy.
The purpose of the article is to provide scientific substantiation of strategic priorities of development and functioning of trade in rural areas under the influence of determinant factors.
The strategic directions of the development of trade in rural areas in the conditions of rural development intensification are investigated. The essential characteristic of rural trade, the tendencies and the character of its modern development are described. Significant deformations and imbalances in the development and functioning of rural trade, inconsistency of its potential with the requirements and principles of agrarian policy are revealed.
The socio-economic and institutional environment of development and functioning of rural trade is analyzed. The active strategic forces, under the influence of which the priorities of development of rural trade are formed, are grounded and determined. The essence, content and character of the main priorities of the perspective development of trade in rural areas are revealed.
The conceptual structural model of rural trade is proposed and its main tasks are substantiated. It is proved that the new model of rural trade should become an organic component of the village’s economic system and promote its social, organizational and innovative development. 
trade in rural areas, rural areas, retail and wholesale trade, trade infrastructure, resource potential, strategic priorities, conceptual model of trade 

Repository of Institute of Regional Research UDC 330.34:[332.122:338.43]:332.025.1:005.216.3; JEL O18, Q01, R11
Honcharenko, I. V., & Bohoslavska, A. V. (2017). Kontseptsiya «Smart City» u zabezpechenni staloho rozvytku sil's'kykh poselen' [Тhe concept of «Smart City» in order to achieve a sustainable development of rural settlements]. Rehional'na ekonomika - Regional Economy, 84(2), 98-104. [in Ukrainian].

Sources: 15

Negative tendencies in the social, economical, cultural, demographical and ecological processes make differences between level of life and economic development of rural and urban areas even stronger.
It is obvious that under such conditions, development of the areas by using methods and models of the last century is already impossible. Therefore, the approaches implemented by world leaders should be taken into account, because in many countries, cities and corporations the task of the first order is the formation and implementation of innovative strategies for sustainable development as a basic security model in the future.
At the initiative of technology corporations the concept of «smart city» has become very popular, first of all because this concept in the current interpretation has combined capabilities of information, modern technology and communication of social capital in the process of achievement of sustainable development goals.
Ukraine is also involved in the global trends as in the Strategy for Sustainable Development «Ukraine – 2020» it is stressed that it is necessary to ensure sustainable development of the country, raising living standards, sustainable economic growth in an environmentally sustainable manner. In 2016, a web service «Smart City» was developed; it implements the concept of «Smart City» in terms of IT and provides tools for the process optimization government and combat corruption.
An experience of the developed countries shows that implementation of the ideas of «Smart City» helps to improve technology of the energy efficiency, reduce environmental pollution, increase social inclusion and also can give ability for businesses to provide a good return of their investments, and for public to have an attractive and healthy environment for life. Obviously, ability to process information, a modern infrastructure and creative management may be associated with small towns.
The basic elements of settlements’ development under the principles of «Smart City» can be the following: creating of the innovation center for searching and selection of the most effective technologies in order to ensure the functioning of the settlement; providing of an open access to the projects of «Smart Cities» in order to attract all residents; creating of a culture of the population behavior according to the new requirements; investing into the staff training and attracting of the qualified professionals from other regions; improving of the quality of life of specific people (the technology of «smart home», security systems) and socially relevant initiatives («smart» technologies in energy, housing); ensuring of the availability of self-government technology for all segments of society.
Therefore, for rural settlements of Ukraine a sustainable development approaches, the investments particularly into the social and human capital, a modern information and communication infrastructure, the production technology will provide economic development, an improvement of the quality of life and environmental management. 
sustainable development, rural settlements, concept of «Smart City» 

Repository of Institute of Regional Research UDC 332.2/.7:[330+34]:[332.122:338.43]; JEL H70, K11, Q15, R52
Zalutskyy, I. R. (2017). Rozblokuvannya moratoriyu na obih zemel'nykh dilyanok sil's'kohospodars'koho pryznachennya v konteksti priorytetnosti yikh okhorony [Unlocking of moratorium on agricultural land plots circulation in the context of top priority of their conservation]. Rehional'na ekonomika - Regional Economy, 84(2), 105-115. [in Ukrainian].

Sources: 17

The article reviews the implementation peculiarities of moratorium on alienation of land plots designated for commercial agriculture and the rights to them, as well as the reasons, the backgrounds and the risks of its prolonging in modern terms.
The author proves the fact that a real threat of negative social and economic consequences can arise under probable moratorium unlocking accordingly with the decision of the European Court of Human Rights or the Constitutional Court of Ukraine and in case of permanent stagnation of national legislative regulation model of commercial agriculture designated land plots circulation and absence of public consensus towards the entities-land purchasers.
The article reveals the essence of methodological and legal contradictions of current Land Code of Ukraine regarding moratorium unlocking solely for entry into force of the law on agricultural land circulation.
It is defined that due to systematic imperfection of land relations transformation mechanism in Ukraine and absence of effective complex state policy towards land conservation, the perspective of legal liability for harmful effect on wealth of agricultural land and soil fertility had been eliminated even before the moratotium was imposed.
The author proves that the urgency and the legitimacy of the records from the State Land Cadastre on agricultural land plots as the objects of perspective full-fledged market circulation are legally regulated by consequent deadlines, in particular overall survey each 20 years; soil judgment at least once per 7 years; economic assessment and regulatory monetary evaluation of these land plots at least once per 5-7 years.
It is determined that in the background of permanent delay of adequate state activities on land conservation, the introduction of free agricultural land plots circulation constitutes a threat to qualitative social and economic changes in Ukraine.
The articles reasons the consolidating approach to unlocking of moratorium on land plots alienation based on priority of the state constitutional mission concerning maintenance of high land conservation.
The changes to the Land Code of Ukraine were suggested in the context of imposing the restrictions and requirements to full-scale preventive maintenance of priority conservation of agricultural land plots; defining of the terms of citizens’ constitutional rights implementation on precise land plot as an ownership object in the process of investment circulation.
The author proves the fact that the right to first purchase of private property land plots, which are under the alienation ban until January 1, 2018, must belong exclusively to the state upon the terms defined thereof.
The article suggests considering of state as the only first buyer of land plots and the rights to them that serve as the subject to the moratorium not as a denial of their market circulation, but rather as a state investment instrument, which unlocks moratorium on market circulation. 
land plot, agricultural land plots’ circulation, unlocking of moratorium, priority of special land conservation 

Repository of Institute of Regional Research UDC 330.341.2:[330.34+316.42]:346.16(477:1-22); JEL E01, O10, O13, Q10, R11
Tsymbalista, N. A. (2017). Current state and problems of development of rural Ukraine: socioeconomic, institutional and legal aspects. Rehional'na ekonomika - Regional Economy, 84(2), 116-123.

Sources: 17

The research reveals a number of modern socio-economic and legal issues facing rural development in Ukraine. The dynamics of changes in the age structure and demographic decline of rural population is analyzed in the regional perspective. The essential aspects of rural employment are studied. It is shown that rural employment is characterized by a significant share of self-employed persons among the people engaged in economic activity. The study ascertains that self-employment in rural areas is mostly concentrated in the informal economy, which does not provide any social insurance. The trends of entrepreneurship development in rural areas are described in the context of prospects to resolve the rural population employment issues. 
rural development, demographic crisis, rural employment, rural entrepreneurship development 

Finance and Banking

Repository of Institute of Regional Research UDC 368.01:330.133.7; JEL C13, G22, G31
Shevchuk, O. O. (2017). Metodolohichni aspekty zastosuvannya dokhidnoho pidkhodu do otsinyuvannya vartosti strakhovykh kompaniy [Methodological aspects of the income approach to insurance companies’ valuation]. Rehional'na ekonomika - Regional Economy, 84(2), 124-131. [in Ukrainian].

Sources: 5

In recent years, the Ukrainian insurance market has been growing in need to assess the value of insurance companies, which is due not only to a change in the management paradigm of the company, but also to objective market processes occurring in the state.
The purpose of the study is to substantiate methodological approaches to determining the market value of an insurance company when using a revenue approach with the forecasting of cash flows of the insurer under different options for the development of insurance activities.
The income approach determines the value of the company (business) based on the estimation of discounted cash flows generated by it. It is based on the principle of expectation that any asset acquired for the purpose of generating income is worth as much as it will bring in the future in the light of the time factor.
In modern economists’ works a large number of methods and models of discounting are presented within the income approach, the article analyzes the problems of their application for the assessment of Ukrainian insurance companies.
The author suggests an algorithm for calculating the cost of an insurance company by discounting cash flows taking into account the specifics of the insurance business, with an approach to determining the cost of capital of the insurer, estimating the amount of free cash flow (FCF) of the company.
The algorithm is approved in assessing the value of one of the Ukrainian insurance companies. The discount rate is calculated on the basis of the weighted average cost of capital model, using data on the company’s capital structure and the value of its individual components.
To predict future cash flows, the following steps have been taken: the choice of the initial data for forecasting, the construction of the regression equation, the forecasting of model parameters, the interval forecast of free cash flows. The lower limit of the forecast interval in each period is taken by the pessimistic value of the cash flow, the upper limit is optimistic, and the point value is moderate.
For each of the variants of development, the company’s residual value is also calculated, added to the amount of current cash flow values and the value of the insurer’s liabilities at the valuation date is taken. Thus, an estimate of the insurer’s value is given with an optimistic, pessimistic and moderate forecast of the activity of the insurance company.
The income approach allows carrying out variant calculations with regard to development and innovation in companies, using the methodology proposed in this research. 
insurance company value, income approach, discounted cash flow method, weighted average cost of capital, forecasting 

Foreign Experience

Repository of Institute of Regional Research UDC 330.341.1.001.12:061.1; JEL F29, O38
Lutskiv, O. M. (2017). Prohramno-stratehichne zabezpechennya realizatsiyi innovatsiynoyi polityky YeS [Program and strategic maintenance of EU innovative policy implementation]. Rehional'na ekonomika - Regional Economy, 84(2), 132-141. [in Ukrainian].

The article examines strategic and program tools of EU innovative policy forming and implementation. EU innovative development strategic priorities are defined. The reasons of EU lag in the intensity of innovative processes conducting from the countries (i.e. USA, Japan, North Korea and China) successful in innovative policy implementation are analyzed. Condition and tendencies of EU innovative development are outlined. In particular, the author emphasizes the fact that according to Innovation Union Scoreboard, which provides comparison of scientific and innovative activity of EU member states by compound indicator, the EU has become more innovative last years. In 28 EU member countries (EU-28) innovative index grew from 0,519 in 2007 to 0,555 in 2014. Peculiarities of innovative processes’ dynamics in EU member countries in 2007 – 2014 are analyzed. The reasons that stipulate certain positive changes in the sphere are defined. Increase of transparency and attractiveness of EU scientific research system, improvement of human capital quality and growth of intellectual assets are among them.
Strategies and Programs of EU innovative development maintenance are analyzed. Their major priorities and implementation directions are outlined. European experience of innovative activity management is generalized and systematized and major directions of EU innovative processes accomplishment are examined. The role and place of innovative cooperation in strengthening of enterprises’ innovative activity in the EU and its certain member countries are outlined.
The most efficient instruments of innovative activity stimulation in the EU are evaluated. Major advantages of 8th framework program compared to the previous ones are defined. Key principle, major objectives and strategic priorities of the program are examined. Main EU investment development maintenance directions indicated by Horizon 2020 are analyzed. The range of new positive points of the program compared to the previous 7 is emphasized. Financial maintenance of Horizon 2020 implementation is analyzed. Horizon 2020 funding budget allocations by EU economic activity priority directions is examined. The author emphasizes the constant activities monitoring in order to evaluate the level of innovative policy long-term goals achievement, define strong and weak points of its implementation and adjust innovative course on the basis of modern methods and parameters of innovative activity monitoring as the distinctive feature of EU innovative policy.
Peculiarities of innovative policy implementation in certain EU member countries are analyzed, in particular Polish innovative policy implementation features, German innovative policy key directions and implementation instruments, British key national priorities of science and technologies development. Directions of Ukrainian innovative policy improvement on the basis of European experience are defined. 
innovative policy, strategies, program maintenance, program documents, innovative activity, innovative processes 

Repository of Institute of Regional Research UDC 339.562+332.14(477+100); JEL F42, F52, L5, M3, O11
Lupak, R. L. (2017). Implementatsiya v Ukrayini svitovoho dosvidu derzhavnoyi polityky importozamishchennya: rehional'no-haluzevi aspekty [Implementation of the world experience of state import-substitution policy in Ukraine: regional and sectoral aspects]. Rehional'na ekonomika - Regional Economy, 84(2), 142-149. [in Ukrainian].

Sources: 12

The ability of the economy to achieve and maintain imported independence due to a proper institutional and organizational preparation and studying the world experience is a necessary condition for its high efficiency and practical implementation. International experience in realization of the import substitution policy is particularly vital for countries where the economy is highly import-dependent and the level of dependence is expected to grow in future. Ukraine belongs to this kind of countries, since starting from its independence proclamation it has failed to ensure economic protection and security of the domestic producers and the consumer market as a whole.
The purpose of this article is to study the directions, strategic priorities, tools and results of introducing the state policy of import substitution at the regional-sectoral level taking into account international experience and opportunities of its implementation in Ukraine.
The paper’s methodological basis is made up of fundamental principles of the systemic-structural, functional, and logical analysis of scientific and special methods, modern concepts of institutional economics.
Strategic priorities, tools and results (positive and negative) of implementing the state policy of import substitution in sectors of the economy for certain groups of countries are studied. The countries are classified with respect to the ability to restore internal trade potential for developing industries, to support key sectors of the economy, to stimulate the development of high-tech industries. The study concludes that the state policy of import substitution tends to be transformed with the development of economy, foreign trade relations, the institutional and legal system of the state and world trade in general. Given the characteristics of the experience of certain groups of countries the authors grounded its possible use at the present stage of development of Ukraine’s economy, which is characterized by high level of import dependence.
It is concluded that the global experience of state policy of import substitution allows us to speak about different ways of its implementation, but in general they can be grouped in two directions – protectionist and liberal It is ascertained that the effectiveness of each of these historical periods differs significantly and is constantly changing along with the changes in the technology of mining and processing of raw materials, regulatory and consumers’ quality requirements to the final products, financial and investment potential of the states. 
public policy of import substitution, industry, protectionism, state’s economy, regional characteristics 

Scientific Figures

Repository of Institute of Regional Research UDC 330.8(477):929; JEL B31
Davymuka, S. A. (2017). Mar’yan Dolishniy: osobystist', uchenyy, hromadyanyn [Maryan Dolyshniy: personality, scientist, citizen]. Rehional'na ekonomika - Regional Economy, 84(2), 150-156. [in Ukrainian].


Repository of Institute of Regional Research Hazuda, M. V., & Hazuda, L. M. (2017). Sotsial'no-ekonomichni y ekolohichni determinanty aktyvizatsiyi rozvytku krayiny ta yiyi rehioniv u suchasnykh umovakh [Socio-economic and ecological determinants of activating the development of the country and its regions in modern conditions]. Rehional'na ekonomika - Regional Economy, 84(2), 157-159. [in Ukrainian].

Repository of Institute of Regional Research Pelekhatyy, A. O., & Levytska, O. O. (2017). Druhi naukovi chytannya z pytan' rehionalistyky pam’yati akademika NAN Ukrayiny M. I. Dolishn'oho [The second scientific readings on the issues of regionalism in memory of the academician of the National Academy of Sciences of Ukraine M.I. Dolishniy]. Rehional'na ekonomika - Regional Economy, 84(2), 160-163. [in Ukrainian].

Repository of Institute of Regional Research Demchenko, V. V., & Pelekhatyy, A. O. (2017). Terytorial'nyy rozvytok i rehional'na polityka: suchasnyy stan ta oriyentyry podal'shykh reform [Territorial development and regional policy: the current state and guidelines for further reforms]. Rehional'na ekonomika - Regional Economy, 84(2), 164-165. [in Ukrainian].

Repository of Institute of Regional Research (2017). Rekomendatsiyi II Mizhnarodnoyi naukovo-praktychnoyi konferentsiyi «Terytorial'nyy rozvytok i rehional'na polityka: suchasnyy stan ta oriyentyry podal'shykh reform» [Recommendations of the 2nd International Scientific and Practical Conference "Territorial development and regional policy: the current state and guidelines for further reforms"]. Rehional'na ekonomika - Regional Economy, 84(2), 166-170. [in Ukrainian].

Repository of Institute of Regional Research Pavlikha, N. V. (2017). Rol' nauky i osvity v zabezpechenni staloho rozvytku derzhavy ta yiyi rehioniv [The role of science and education in ensuring sustainable development of the state and its regions]. Rehional'na ekonomika - Regional Economy, 84(2), 171-172. [in Ukrainian].

Repository of Institute of Regional Research Tsymbalista, N. A. (2017). Pol's'kyy dosvid rozvytku sil's'kykh terytoriy dlya Ukrayiny [Polish experience of rural areas development for Ukraine]. Rehional'na ekonomika - Regional Economy, 84(2), 173-174. [in Ukrainian].


Repository of Institute of Regional Research (2017). Profesoru Romanu Fedanu – 80 rokiv [The 80th anniversary of the Professor Roman Fedan]. Rehional'na ekonomika - Regional Economy, 84(2), 175-176. [in Ukrainian].

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