Scientific and practical journal
Regional Economy

Regional Economy -- Year 2018, Issue 1(87)

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Regional Policy and Territorial Development

Repository of Institute of Regional Research UDC 330.341.1:332.1; JEL O18, O31, R11, R58
Davymuka, S. A., & Fedulova, L. I. (2018). Teoretyko-metodolohichnyy dyskurs suchasnoho rehional'noho innovatsiynoho rozvytku [Theoretical and methodological discourse of modern regional innovative development]. Rehional'na ekonomika - Regional Economy, 87 (1), 5-16. Retrieved from [in Ukrainian].

Sources: 29

Problem: swift modern development of social and economic processes, stipulated by powerful advance of the fourth industrial revolution and unstable geopolitical situation, causes the range of challenges that the regional political initiatives on innovative activity stimulation have to answer to. It significantly influences the forming of the methodology of modern regional economic policy directed at innovative development and requires additional research of the peculiarities of strategic initiatives’ regional aspects.
Objective: to define and explain the peculiarities of modern technical and methodological foundations of regional innovative development and to substantiate their influence on forming of regional innovative policy.
Research methods – the provisions of regionalism and institutionalism are used as the basis for analysis and synthesis methods application in order to characterize modern scientific concepts of regional innovative development. The principles of modern concepts’ implementation are generalized on the basis of system approach and suggestions over forming of regional innovative policy are made.
Research results – the peculiarities of new implementation stages of the concepts of sustainable development, regional innovative ecosystems and «triple spiral» and their influence on forming of regional innovative ecosystems are outlined. Among the most prominent modern developments on the abovementioned issues the most significant are the following: the general methodological aspects of creative economy, mechanisms of creative economy and environment interrelation, employment and dynamics of creative industries’ spatial location, dependence of life quality on creative professions; implementation of inclusive development concept. The fact that nowadays reforming of innovative processes in Ukraine on the regional level in conditions of integration processes strengthening have to be based on positive experience of developed European countries and implementation of European standards of decentralization taking into account domestic specifics («smart specializations») is proven. It will contribute to avoidance of many mistakes, reduction of material expenses and time as well as optimization of the own algorithm of reforms implementation.
Conclusions and suggestions – the problem of creation of foundations for new region’s paradigm emerges taking into account the provisions of modern theories of modernization and regional economic activity development (sustainable development concept, theory of regional product life circle and some technological theories) and peculiarities of transition from market model, in particular foreign trade, of regional development to the management one on the basis of innovations. While developing the modern innovative business-model on the level of regional economy, it is necessary to: form additional instruments of professional competences development and optimize the available ones, provide public assistance in order to strengthen the connections between operative links of innovative process and creation of “soft infrastructure” of regional innovative ecosystem (it regards the elements, which are the basis for establishment of cooperation relations), as well as create other stimuli to encourage companies’ cooperation in terms of innovative endeavors. 
methodology, scientific concepts, regional policy, region’s innovative ecosystem, innovative processes 

Repository of Institute of Regional Research UDC 332.122:338.45(477); JEL L60
Ishchuk, S. O. (2018). Promyslovist' rehioniv Ukrayiny: tendentsiyi i problemy rozvytku [Industry in Ukrainian regions: trends and problems of development]. Rehional'na ekonomika - Regional Economy, 87 (1), 17-29. Retrieved from [in Ukrainian].

Sources: 16

Possessing the considerable industrial potential and at the same time transit, natural raw material and human capital, Ukraine still lags behind the Member States of the European Union (EU) in terms of output and the gross value added of industry. The main prerequisites for the poor competitiveness of the domestic industry are the use of outdated technologies and the critical degree of deterioration of fixed assets as well as low efficiency of its operation.
The purpose of the article is to identify the main trends and problems of industrial development in Ukraine based on the evaluation of the dynamics of the indicators’ values that systematically characterize the level of the industrial sector functioning in the national economy in a regional context.
The results of the analysis showed that industry remains the leading type of economic activity in Ukraine with a share of 31.4% in the volume of sales of the products (goods and services). At the same time, the share of industrial goods in total exports during 2011-2016 decreased by 16.2 percentage points (to 59.5%), and the share of non-current assets in the structure of assets of the industry – down to 45.6%. The growth rates of foreign direct investment in industry in 2016 were negative in 19 districts. By the share of implemented innovative products in the total volume of industrial products sold, Ukraine lags behind Poland almost 9 times.
In order to counteract the established negative trends in the development of domestic industry and to increase the level of productivity and profitability of the subjects of industrial activity in Ukraine, the implementation of a complex of organizational and economic and financial mechanisms in the following areas is required: an increase in the level of innovation activity – stimulation of the development of high-tech industries through their selective subsidization on the example of the EU member states, preferential lending and taxation, with the increase of the science-intensive products; activation of foreign direct investment attraction -increasing the access of industrial activity entities to foreign investment resources and raising the level of awareness of foreign investors regarding potential investment patterns; expansion of export potential – stimulation of export activity of subjects of industrial activity by providing them with support in the direction of improving the quality management system of industrial products and ensuring the international certification of production; reducing the cost of industrial products – improving the territorial organization of production and reducing the length of production and sales cycles in industry. 
assets, development, efficiency, export, industry, innovation, investments, production 

Repository of Institute of Regional Research UDC 332.122:331.01; JEL H73, O18, R58
Benovska, L. Ya. (2018). Terytorial'na hromada yak sub’yekt rehulyuvannya rozvytku terytoriy: teoretychni aspekty [Territorial community as a subject of regulation development of the territories: theoretical aspects]. Rehional'na ekonomika - Regional Economy, 87 (1), 30-39. Retrieved from [in Ukrainian].

Sources: 16

In the article, the conceptual and terminological apparatus of territorial communities was investigated with the allocation of territorial, sociological, public and legal and systemic approaches. It is revealed that implementation of the reform of administrative-territorial system and decentralization reform require a qualitatively new view on territorial communities with taking into account economic, financial and material factors. After all, with the introduction of amendments to the Budget and Tax Code, on the one hand, the conditions for increasing the financial capacity of the territorial communities were created, and on the other hand, their responsibility for the development of their territories increased.
The territorial community is proposed to be considered as an integral entity, which is characterized by the unity of social community, the subject of local self-government and the basic level of the administrative and territorial system of the country. Territorial community as a social community creates and supports social life within a certain territory, guided by the economic, political, social and cultural, and environmental interests; as a subject of local self-government it can operate in conditions of interaction with the environment and be responsible for maintaining integer landmarks; as a basic link of the administrative and territorial system it is characterized by a system, has a certain resource potential, which provides it with competitive advantages and creates opportunities for the development of the territory.
The classification of territorial communities was carried out by the following classification characteristics: type of settlement, fullness of coverage, character of formation, geographical location, level of social and economic development.
The territorial community is proven to act as the subject of regulation of the development of its own territory, and the object of regulation (as an administrative and territorial unit of the base level) in the system of management of higher level authorities (regional, state).
The regulation of the development of territorial communities is proposed to be considered as ensuring of favorable conditions on the part of state, regional and local authorities for providing social and economic development of territorial communities by using various instruments and methods of influence (economic, organizational, financial, legal).
The functions of territorial community, as the subject of regulation of social and economic development, are investigated. Legal, organizational, economic, financial methods of regulation of the development of territorial communities are allocated. Two directions of state regulation of the development of territorial communities are outlined: leveling of disproportions of social and economic development and promotion of the development of territories. The first direction involves the mechanisms of indirect action and is implemented through interbudgetary relations with the use of financial equalization instruments; the second direction involves the mechanisms of direct action through investment support of the development of territorial communities. 
territorial community, development, regulation of development, local self-government 

Repository of Institute of Regional Research UDC [332.122:338.48]:339.138; JEL M31
Malynka, O. Y. (2018). Kontseptsiya formuvannya brendu turystychnoho rehionu [Branding concept of a touristic region]. Rehional'na ekonomika - Regional Economy, 87 (1), 40-47. Retrieved from [in Ukrainian].

Sources: 13

In this paper branding concept of a touristic region is suggested with the purpose of improving its investing and touristic attractiveness, enhancing the quality of people’s lives, creating positive image of the region and increasing its competitiveness. Practical implementation principles of this concept are also presented. It is proved that brand as a tool of individualization and differentiation of products or services is the strongest information signal, which a seller can send to a consumer in conditions of imperfect information on the market. The notion “brand” may refer not only to companies and their products. Considering branding of a touristic region, it should be mentioned that value based economy model, as the model of territorial development, is particularly relevant for such areas which do not have significant raw materials. Brand is a resource which can potentially work forever. Effective brand of a touristic region, which is engaged in business performance, can provide income that will exceed the cost of raw materials. Brand formation is the activity based on deep market knowledge. The “pyramid” of touristic regional brand is developed, and practical implementation algorithm of the project is suggested, which is based on the conceptual brand management model. Target groups of the project are supposed to be touristic management, representatives of local authorities, rural and urban communities, touristic industry enterprises and touristic and recreational complexes, national crafts producers, objects of industrial tourism, etc. Final beneficiaries of the project are supposed to be local communities, regional and local administrations and their associations which are responsible for tourism development, public structures whose purpose is to maintain sustainable tourism development in the region, associations and organizations of small business or entrepreneurs in touristic sector. Positive experience of the program can also be extended to other regions which do not belong to the program area. The algorithm for practical implementation of the project is based on the conceptual brand management model and includes: 1) regional brand identity development; 2) creation of brand attributes of the region; 3) development and implementation of marketing programs which allow to create a brand (considering the components of marketing mix: specific measures concerning products/services, prices, places and communications); 4) involvement of secondary associations / tools which are necessary to reinforce and strengthen the main marketing programs; 5) branding strategy development; 6) effectiveness estimation of regional brand; 7) creation of the project’s website; 8) development of the portal with touristic information; 9) public hearings; 10) seminars; 11) international conference concerning results of the project; 12) preparation and publication of project results, in particular, articles, books, textbooks, monographs, other scientific papers etc. Expected results of the project should be: 1) creation of positive regional image; 2) public information about the uniqueness of the area; 3) increase of regional competitiveness in order to gain foreign markets, to attract investors, tourists, new residents and qualified migrants; 4) overcoming the shortage of tangible and intangible resources of the area; 5) activation of tourism development; 6) informational and analytical published materials, public hearings, seminars, conferences; 7) project website and portal with useful information for tourists.
Based on benchmarking researches of leading companies, current challenges are analyzed which are relevant for any company, market or region. Certain initiatives concerning the next steps and fundamental principles of new marketing and branding strategies are suggested, which are relevant for a touristic region as well. 
branding, touristic regional brand, brand management, brand equity, marketing of territories 

Repository of Institute of Regional Research UDC [332.122:334.722]:334.012.82(477); JEL M20, O18, R12
Tkachenko, O. O. (2018). Potentsial rozvytku prostorovoyi intehratsiyi biznesu v rehionakh Ukrayiny: analiz ta otsinyuvannya [Capacity of spatial business integration development in Ukrainian regions: analysis and evaluation]. Rehional'na ekonomika - Regional Economy, 87 (1), 48-56. Retrieved from [in Ukrainian].

Sources: 7

Global experience of spatial business integration development shows that combination of knowledge, skills and available resources of business structures, scientific, research and educational institutions and authorities contributes to achievement of the best results. In this regard there is the urgent necessity to research the opportunities to form and develop various forms of business spatial integration at the territory of Ukrainian regions on the basis of «triple spiral» model of innovative development.
The article aims to determine the level of available capacity and perspectives of business spatial integration development in Ukrainian regions on the basis of «authorities-business-science» triad.
General and specific methods of scientific knowledge are the methodological basis of research. Calculation of integral index of business spatial integration capacity in a region is conducted on three-level hierarchy system of parameters (25 primary indicators, 4 subsidies: «institutional maintenance capacity», «business capacity», «scientific and educational capacity», «infrastructural capacity» and integral index of business spatial integration capacity in a region).
Analytical evaluation of available preconditions and possible perspectives of development of various forms of business spatial integration in Ukrainian regions through the prism of their business, infrastructural, institutional and scientific and educational capacities is conducted. The level of spatial business integration capacity by regions is defined on the basis of integral evaluation results. Strong and weak points of regions in terms of business spatial integration forms development on the basis of «authorities-business-science» triad are outlined.
The results of conducted research contributed to verification of the fact that at present conditions «authorities-business-science» triad can’t be the basis for development of the network of business spatial integration forms in majority of Ukrainian regions, primarily due to insufficient level of public assistance to scientific, research and innovative activity and small and medium enterprises and passive attitude towards forming of up-to-date ecosystem in regions. Instead, capacity of business and available infrastructure are strong components of business spatial integration forms capacity in the regions. Moreover, economy clusterization is the perspective of business spatial integration development in the regions.
The obtained research results can serve as scientific and analytical basis for making of relevant decisions on clusters forming in Ukrainian regions by public authorities, enterprises and organizations ready to cooperate.
Conducting of thorough research of clusterization capacity by economic activity types on the level of Ukrainian regions is the perspective direction of further research. 
business spatial integration, cooperation, capacity, region 

Social Policy

Repository of Institute of Regional Research UDC 330.59:[330.341:37.014.6]:303.442.23(477.83); JEL I31, I24, I26
Lutchyn, N. P., & Hrynkevych, O. S. (2018). Yakist' zhyttya i chynnyk osvity u fokusi rehional'nykh obstezhen' naselennya Ukrayiny [Life quality and a factor of education in the focus of regional population survey in Ukraine]. Rehional'na ekonomika - Regional Economy, 87 (1), 57-68. Retrieved from [in Ukrainian].

Sources: 25

The paper reflects on the assessment and analysis of life quality using objective and subjective indicators. The methodology the authors’ research is based on the theoretical study of scientific approaches to understanding the concept of «life quality», the conceptual bases of its measurement and on the Polish experience in empirical studies on relevant topics as well.
Using a special questionnaire survey the authors make clear the subjective assessments that reflect the individual perception of life quality by the adult population in Lviv region and are based on respondents’ personal values and perceptions. It is found out that on a 5-point scale, the average point of the satisfaction with life quality by the residents of the region is 4.07. Based on non-parametric methods of the analysis of relationships it is determined that the main factors of the overall satisfaction with life quality in Lviv region (Ukraine) include marital status, living conditions (accommodation) and a way of spending free time.
The results of the authors’ surveys and the others indicate that the level of education and its accordance with individual expectations is one of the main factors of increasing objective and subjective indicators of life quality at both the individual and regional and national levels. 
life quality, subjective evaluation, education, education and inequality, Ukraine (Lviv region) 

Repository of Institute of Regional Research UDC 336.5.02:656.13; JEL H53, R48, R51
Yaroshevych, N. B., Kondrat, I. Yu., & Lyvdar, M. V. (2018). Metodychni pidkhody do rozrakhunku adresnoyi hroshovoyi kompensatsiyi na osnovi vstanovlennya norm transportnoyi rukhomosti pil'hovykh katehoriy naselennya [Methodological approaches to calculation of targeted monetary compensation on the basis of establishment of the transportation norms for citizens of privileged categories]. Rehional'na ekonomika - Regional Economy, 87 (1), 69-75. Retrieved from [in Ukrainian].

Sources: 14

Theoretical and practical recommendations over maintenance of passenger traffic socio-economic efficiency by means of transport privileges monetization are substantiated; the analysis of the active mechanism of compensation calculation and payment to transportation companies for transportation of passengers of preferential categories is conducted; the fact that the quantity of persons, which have a right to preferential transportation as well as preferential categories’ mobility is significantly different depending on region is revealed; the necessity to establish regional norms on preferential transportation services’ consumption is grounded; the methodics of regional norms establishment on preferential transportation services’ consumption is proposed, and it should become the basis for the calculation of monthly targeted compensation to individual categories of persons for their preferential transportation by municipal and commuter public transport, as well as of the local budgets expenditures for this purpose. The current state and modern development trends of the transportation by municipal and commuter public transport are established. The main problems of municipal and commuter public transport are determined. The analysis of methodics for determination of volumes for the preferential transportation services consumption and volumes for the preferential transportation services consumption in Ukraine is conducted. The proposed methodics for determination and establishment of regional norms for the preferential transportation services consumption is based on the benefit recipients’ mobility coefficient, which is calculated on the basis of data on real values defined by experts method on the basis of examination of passenger flow and coefficients of preferential and paying passengers ratios, approved by the local authorities to determine the amount of compensation to transportation companies for transportation of citizens of privileged categories. 
municipal and commuter transport, transport privilege’ monetization, norms of preferential transportation services’ consumption 

Repository of Institute of Regional Research UDC 336.5:[338.46:61]:614.2; JEL H35, H72, I13
Dub, A. R. (2018). Transformatsiya mekhanizmu finansuvannya okhorony zdorovya: vyklyky dlya obyednanykh terytorial'nykh hromad [Transforming of the health financing mechanism: challenges for the united territorial communities]. Rehional'na ekonomika - Regional Economy, 87 (1), 76-84. Retrieved from [in Ukrainian].

Sources: 8

Improving the quality of health care delivery is the goal of medical reform. However, the transformation of the financing mechanism of health care should become the breakthrough in its accomplishment. Particularly, the issues of medical reform financing are of utmost importance for the communities formed in the process of decentralization of power, since in 2018 the changes will affect the primary level of provision of medical services.
The purpose of the article is to identify potential problems and risks of public health financing transformation at the level of the united territorial communities.
The process of transforming the health financing mechanism in 2016-2017 is examined. The adequacy of funds allocated from the state budget to ensure the functioning of medical institutions providing primary health care in the united territorial communities in Lviv region is analyzed. The possible financial and social risks of introducing a new approach to financing primary health care in 2018 are critically assessed.
The budget financing of health care through the use of medical subvention is imperfect and needs reform. An analysis of the use of medical subventions to finance the provision of primary health care at the united territorial communities’ level in 2016 showed that funds allocated from the state budget remained unused in some communities, while others lacked them. The main reasons were: the imperfection of the formula for distributing the medical subvention and the distrust of the population to the medical staff in the primary health care institutions in rural areas due to their low professional level. Changes in the financing mechanism of health care in 2017 did not correct the situation. In 2018, healthcare financing based on the principle of “money going for a patient” will be launched at the level of primary care provision. Despite this, there is a threat of emergence of a number of risks, both financial (the sufficiency of funds to finance medical services and investment expenditures for the development of a network of medical institutions, etc.), as well as of social nature (quality and timeliness of provision of medical services, provision of medical institutions in rural areas, etc.).
The need to reform the financing mechanism of the health care sector is beyond doubt. But, besides this, it is accompanied by a significant amount of both financial and social risks that may have an impact on the effectiveness and efficiency of the reform, especially in rural areas. Therefore, related issues will require in the near future a detailed study and development of measures to eliminate them. 
budget, medical subvention, health care, united territorial community, medical reform 

Ecological Policy and Nature Management

Repository of Institute of Regional Research UDC 330.15:502/504:330.526; JEL Q57, C13
Suhina, O. M. (2018). Metodolohichnyy pidkhid do vyznachennya rozmiru ekolohichnoyi renty [Methodological approach to determination of the amount of the ecological rent]. Rehional'na ekonomika - Regional Economy, 87 (1), 85-93. Retrieved from [in Ukrainian].

Sources: 12

Natural resources with assimilative properties are the property of Ukrainian people, and each citizen should receive the ecological rent, and if possible, in the form of a pure environment. The modern system of environmental taxation in Ukraine is imperfect because it does not stimulate the business entities to conduct ecologization of production. In order to collect rental payment for using of assimilation services of ecosystems it is necessary to evaluate the ecological rent.
The purpose of the article is to develop proposals concerning forming of versatile mechanism of collection and distribution of ecological rent in Ukraine.
In order to accomplish the scientific research the author used general scientific methods: economic-mathematical modeling – for formalization of an estimation of the ecological rent and the cost of use of the environment assimilative potential; method of the system approach – for systematization of foreign experience of sovereign funds creation, etc., as well as specific, in particular, comparisons of benefits and costs (Cost-Benefit Analysis – CBA) – to determine the priorities for nature users: to pay or carry out the ecologization of industries, etc.
For the first time in the world practice the methodical approach to determining of the rate of ecological rent as the difference between profit of the economic entity using the assimilative potential of the environment free of charge, and the average income of economic entities (for a specific industry), which recover maximally assimilative functions of ecosystems, is developed. It is the novelty of scientific research. The methodological approach to the determination of the rate of the rental payment for using the assimilative services of ecosystems – environmental rental payment – is developed. The methodological approach to estimation of the cost of the environment assimilative potential exploitation (of the forests, water, atmospheric air, soil) on the basis of valuation of the cost of artificial recycling of wastes, etc. is developed.
In opinion of the author, the rental payment for use of the assimilative services of ecosystems should be based on collection of ecological rent (separating of the ecological rent from profit of the economic entity). At the modern development of technologies, the cost of use of the assimilative potential of the ecosystem can be roughly equated with the cost of utilization of waste. The sum of payment for pollution of the nature should be comparable to the concrete amount of economic damage from environmental pollution (revenues from the payment of which would be enough to cover damages) and which would stimulate business entities to realize the ecologization of production. The author offers to use correcting coefficients of the account of assimilative properties of ecosystems.
Thus, the modern system of environmental taxation in Ukraine is imperfect because it does not stimulate the business entities to conduct ecologization of production. For the first time in the world practice and the economic theory the methodological approach to the determination of the rate of the rental payment for using the assimilative services of ecosystems – environmental rental payment – is developed on the basis of estimation of the cost of the environment assimilative potential exploitation.
However, currently, there is a problem with the estimation of the ecological rent, because of introduction of technologies: thus it is difficult to separate the ecological rent from the technological quasi-rents. 
formalization of ecological rent evaluation, innovative methodology of evaluation, ecological rent payment, correlation coefficients 

Finance and Banking

Repository of Institute of Regional Research UDC 33.053:338.532.4:330.55(477); JEL C62, D57, E30, O16
Zablotskyy, M. B. (2018). Rehulyuvannya balansu fizychnoho i hroshovoho VVP dlya stabilizatsiyi spozhyvchykh tsin v Ukrayini [Regulation of the balance of physical and monetary GDP for stabilizing of consumer prices in Ukraine]. Rehional'na ekonomika - Regional Economy, 87 (1), 94-101. Retrieved from [in Ukrainian].

Sources: 12

The problem of the imbalance of physical and monetary GDP as a reason for price volatility is considered. It is noted that the volume of physical GDP is formed by the volume of involved capital and employed labor, and monetary GDP is formed by volume and price of the unit of physical GDP. The fact that the population and companies are always interested in obtaining as much money and material income as possible and being solvent is proven. It was emphasized that with the balance of physical and monetary GDP, prices for goods and tariffs for services are unchanged. The Government of Ukraine and the NBU are suggested to apply the deflator index as the indicator of the assessment of the imbalance between markets and the economy in general – the ratio of the monetary GDP index to the index of physical GDP, which in case of balance is equal to one; in case of inflation – more than one, in case of deflation – less than one. The index model of the law of economic balance is proposed to be used to identify factor variables that influence the underproduction of physical GDP in Ukraine and the rise in prices. The interaction of the NBU, the Government of Ukraine and companies with the aim of optimizing the monetary, investment proposal for companies for the growth of physical GDP up to the needs of consumption is substantiated. An estimation of the dynamics of the movement of physical and monetary GDP indices in Ukraine is carried out, their asynchronous movement and chronic inflation caused by the lag of production behind the needs of consumption of physical GDP, which causes an increase in demand for money and excessive growth of monetary GDP, are revealed. Conclusions and recommendations to the Government of Ukraine and the NBU on the need to intensify investments in order to increase the volume of production of physical GDP and optimize monetary GDP in order to achieve their balance were made. 
economic regulation, physical GDP, monetary GDP, GDP movement indices, GDP deflator, imbalance of physical and monetary GDP, stabilization of prices and markets 

Economics and National Economy Management

Repository of Institute of Regional Research UDC [338.47:004]:330.837(477); JEL K30, L86
Melnyk, M. I. (2018). Instytutsiyne zabezpechennya rozvytku IT-sektoru v Ukrayini: osnovni problemy ta priorytetni napryamy udoskonalennya [Institutional maintenance of ІТ-sector development in Ukraine: major problems and priority directions of improvement]. Rehional'na ekonomika - Regional Economy, 87 (1), 102-110. Retrieved from [in Ukrainian].

Sources: 8

Development of information space and information technologies becomes the powerful factor of economic growth stimulation, higher quality of social processes’ integration and improvement of competitive level of national economy in general. Information technologies’ development encompasses broad activity spheres, influences the functioning of many institutions and creates environment for efficient production development and providing of services.
Regulative acts of Ukrainian legislation in the IT sphere are analyzed and the fact that they correspond to main principles and strategic priorities of global information development and to the European Union legislation is proven. However, the level of information society development in conditions of European integration course doesn’t agree with the capacity and opportunities of Ukraine due to various problems of real application of existing legislation (inefficient procedures of implementation, permanent lack of sphere’s funding, dispersion of regulative functions and budget resources) as well as crisis tendencies of social and economic development in general.
The issue of forming of the system of harmonized and favourable institutional maintenance of IT-sector development under current conditions of global competitiveness requires improvement in the context of forming of more flexible system quickly reacting to the influences of institutional (including informal), political, economic, social and global factors on the business activity of IT-companies in the process of coordination of strategic priorities of information technologies development.
Institutional maintenance of forming of IT-sector development public policy in Ukraine is analyzed, in particular legislative and regulative maintenance in the sphere of national informatization program, strategic view of information society and informatization development, electronic document management and governance, legalization of software, etc. The fact that institutional environment is also formed by informal relations and institutional traps, which impact the business activity of IT-companies, is proven.
Suggestions over improvement of domestic system of legislative and regulative maintenance of IT sector development in the context of creation of favourable conditions for conducting of ICT-business are made. Organizational and economic priorities of public policy of IT-sector development in the context of its competitiveness improvement and IT-innovations commercialization are defined. Recommendations on forming of favourable conditions for efficient cluster cooperation between the IT-sector entities on domestic and international markets are suggested.
Priority measures of forming of favourable organizational and institutional environment of IT-sphere development are defined on the basis of analysis of IT development priorities, which will have high success capacity (profitability) in the nearest future, contributing to national innovation ecosystem development and being the basis for the country’s leadership in the It sphere. Foresight technology is applied as the instrument of priority forming and mobilization of numerous participants in order to achieve qualitatively new results in the sphere of science and technologies. 
information technologies, ІТ-sector, ІТ-cluster, institutional maintenance of IT-sector development, country’s innovative ecosystem, public policy of IT-sector development 

Repository of Institute of Regional Research UDC 339.137:[338.45:665.7]:338.22(477); JEL L72, Q40
Mahas, V. M., & Kantur, K. S. (2018). Konkurentna polityka na rynku naftoproduktiv Ukrayiny: zahal'noderzhavnyy kontekst i rehional'na spetsyfika [Competitive policy on the Ukrainian oil market: national context and regional specifics]. Rehional'na ekonomika - Regional Economy, 87 (1), 111-119. Retrieved from [in Ukrainian].

Sources: 14

The article examines theoretical foundations of competitive policy forming and practical mechanisms of its application with the purpose of antimonopoly regulation of oil market in Ukraine. Special attention is paid to the heterogeneity of scientists-economists’ views over the problem of antimonopoly regulation of markets and means of public competitive policy.
Attention is also paid to the analysis of oil market in Ukraine from the viewpoint of priority directions to improve the competitive policy directed at its development. In particular, significant impact of the risk of cartel conditions expansion and the coherent anticompetitive policy of the market participants are emphasized. It is stipulated by the limited circle of producers and importers of oil products sold on domestic market.
Analysis of regional aspects of oil market development in Ukraine testifies to sustainable differentiation of prices on oil products in various regions of the country, caused by domination of different oil traders there. It allows making conclusion about the lack of sufficient competitiveness level on the abovementioned market and the need for diversification of competitive policy means, directed at its development.
On this ground suggestions over the priority directions of competitive policy improvement on oil market of Ukraine are made. In particular, priority attention should be paid to prevention of cartel collusions and coherent anticompetitive policy through restriction of inefficient regulatory influence of state and improvement of institutional and organizational maintenance of antimonopoly influence on regional oil markets. Moreover, the most efficient mechanisms of competitive policy on oil markets tested in the developed countries globally are suggested to be adapted to the domestic conditions. It primarily refers to increase of pricing transparency through exchange and auction trade and strengthening of control over prevention of cartel collusions. 
Ukrainian petroleum market, anti-competitive behavior, cartel collusion, competition policy, antitrust regulation 

Repository of Institute of Regional Research UDC 330.341.4:351.824.1:330.35:005; JEL L50
Kuybida, S. V. (2018). Kontseptual'ni zasady strukturnoyi polityky derzhavy v umovakh hlobalizatsiyi [Conceptual bases of the structural policy of the state in globalization conditions]. Rehional'na ekonomika - Regional Economy, 87 (1), 120-125. Retrieved from [in Ukrainian].

Sources: 11

Based on the analysis of the achievements of Ukrainian and foreign scientists, the interpretation of the structural policy of the state has been improved. The necessity of its formation and realization in Ukraine on the principles specified by us for ensuring accelerated economic growth, elimination of disproportions of development of regions and increase of Ukraine’s competitiveness on world markets is substantiated.
Taking into account the competitive advantages and weaknesses of the Ukrainian economy, the purpose and main tasks of the structural policy of Ukraine in the conditions of globalization processes and increase in the highly developed countries of production of the sixth technological structure called the fourth industrial revolution have been specified. The method of implementation of structural policy in Ukraine under the specified conditions is selected and grouped.
The structural policy is implemented through the mechanism of structural regulation of the economy, under which we suggest to understand a set of methods and tools, by means of which certain managerial decisions are implemented in the process of formation and implementation of the structural policy of the state. The methods and tools of this mechanism will simultaneously be methods and instruments of the structural policy. Proceeding from the proposed definition of the mechanism of state structural regulation of the economy, we offer to attribute to its main components the methods that should be grouped on the basis of content filling of the methods: institutional, legal, economic and social.
Taking into account the global tendency to combine the material world with the virtual, as well as the considerable lag of the Ukrainian economy from the high-tech manufactures of the developed countries, the necessity of the formation and implementation of structural policy for ensuring accelerated economic growth, elimination of disproportions of regional development and enhancement of Ukraine’s competitiveness on world markets is substantiated. The principles of the formation of such a policy are highlighted and characterized, among which the following are compulsory: the rule of law, transparency, openness, participation, responsibility, efficiency, comprehensiveness, adequacy, compatibility, priority of the development of the IT industry and the scientific and technical sphere, ensuring life safety, alternatives and others. 
structural policy, globalization, digital technologies, principles, methods 

Economics and Business Management

Repository of Institute of Regional Research UDC 658.6:65.012.32; JEL D83, M54, M12, C12
Berehova, H. I., & Hladunskyy, V. N. (2018). Vplyv indyvidual'noyi synerhiyi prodavtsya na efekt vytorhu [Influence of the seller’s individual synergy on the effect of proceeds]. Rehional'na ekonomika - Regional Economy, 87 (1), 126-131. Retrieved from [in Ukrainian].

Sources: 5

The effective functioning of any socio-economic system, its financial and economic outcomes are directly related to the human factor. Man as a complex open system, as the main driving force of the socio-economic system is сonsidered. The article concerns people from controlling and controlled subsystems. On the basis of synergetic approach and the analysis of the content of concepts of «synergetics», «synergy», «synergistic effect», occurrence of synergism in practical activity of an individual, in the process of management and self-management are revealed.
The results of long-term monitoring of the activity of pairs of salesmen working in shifts in one of the shops in Lviv are described. The shop specializes mainly in selling meat and sausage products. The article deals with facts that during the working day one seller serves on average 330 customers, and the other – 282, weekly sale proceeds are significantly different, respectively. The reasons for this difference are revealed. The relationship of the seller’s individual synergy with the levels of revenue is proved using scientific methods of research, such as observation, comparison, matrix, factor, graphical analyzes, statistical methods, in particular. The positive economic effect, which was obtained mainly due to the synergy of internal and external characteristics of sellers, is substantiated on the basis of specific data of weekly earnings. It is argued that such synergy is achieved due to self-organization and effective implementation of two managerial functions by the sellers – customer management and self-management, based on the principle of compromise of interests. It is shown that a person achieves synergetic effect combining his physical, intellectual, spiritual, psychic, communication qualities and one-vector orientation of these qualities.
Manager’s actions and decisions, based on a synergistic approach are described. The choice of the seller with a similar self-organization to one, who served more customers on average, led to a significant change in the situation. As a result, their target functions have become practically equal and reached maximum or close to maximum value. This is proved on the basis of statistical methods and illustrated graphically.
Attention is drawn to the fact that finding specific opportunities that lead to synergistic effects is often not a simple matter, since it requires a wide range of knowledge, in particular, in economics, mathematics, logic, psychology, pedagogy, and sociology. A large range of situations in which there is the possibility of creating a synergistic effect in the result of individual’s activities, expand the field of scientific research. 
system, synergy, man, management, synergetic effect 

Foreign Experience

Repository of Institute of Regional Research UDC 338.24.021.8:346.232"1990/1999"(438); JEL F43, H73, O52, R58
Lyzwa, E. (2018). Reforma mistsevoho samovryaduvannya v Pol'shchi u 1990-ti roky – perebih, perevahy ta problemni zony [The self-government reform in Poland in the 1990s – the process, advantages, and problem areas]. Rehional'na ekonomika - Regional Economy, 87 (1), 132-142. Retrieved from [in Ukrainian].

Sources: 21

One of the main reforms in Poland after 1989 was creation of local government (community were created in 1990, counties and provinces since 1999,). The implementation of this reform, apart from benefits, also caused problems. The main point of this report is to identify defects. The selected information were analysed – scientific publications, expert reports and questionnaire results. The conclusions showed that the main problems of self-government are: too small autonomy of activity, overdone imposition of tasks without sufficient cash, unclear role of counties. The article also shows other problems that limit the possibilities of local government activities. We should spread the knowledge about the existence of obstacles to development management Knowledge. Common awareness of restrictions will help policy makers take right actions that meet the needs of the community in a given area. 
reform, local self-government, autonomy, administration, local development, regional development 

Repository of Institute of Regional Research UDC 330.341.4:339.137:332.122:[339.923:061.1]; JEL O14, R11
Cherkas, N. I. (2018). Strukturni determinanty rehional'noyi konkurentospromozhnosti: dosvid rehioniv YeS [Structural determinants of regional competitiveness: experience of EU regions]. Rehional'na ekonomika - Regional Economy, 87 (1), 143-151. Retrieved from [in Ukrainian].

Sources: 15

The paper investigates the EU regional policy and assesses the structural factors of the regions’ competitiveness according to the territorial division of NUTS2. The regional disparities in the EU-28 remain to be particularly significant, as many countries (mainly the new members) have lower level of economic development and less advanced infrastructure. Despite the strong efforts to improve the EU’s regional policy, the economic inequalities of the regions remain to be high. The purpose of the study is to analyze and compare the impact of the structure of employment on the competitiveness of the EU regions, taking into account the differences in economic development. A regional space-based development policy, aimed at convergence and economic growth support of structurally weak regions, is analyzed in the paper. The directions of the EU “smart specialization” strategy focused on stimulation of local business initiatives and technological improvement of the region’s base are determined. The main variable of our interest is the Regional Competitiveness Index, which consists of the basic sub-index and the measures of efficiency and innovation. We analyzed ten the most and the least competitive regions of the EU in 2016. In the least developed regions we observed that the absence of companies - technological leaders results in the outflow of skilled labor and the employment is concentrated in low value-added industries, causing a “regional depression trap”. The empirical analysis of the determinants of regional competitiveness was performed with a panel regression for the data of 276 EU regions (NUTS2), divided into 2 subgroups according to the stages of development based on the methodology of Eurostat Statistical Atlas. The first subgroup included stages of development 1-2 (107 regions) and the second – stages of development 3-5 (169 regions). The Regional Competitiveness Index was used as dependent variable, while explanatory variables were the income of private households, the share of employment in industry and in nonfinancial sector. The employment structure reflects shares of low and high value added sectors. The results indicate that increased employment in sectors with low added value negatively affects regional competitiveness. Relatively low employment rates in the EU industrial sector point out that big companies tend to move their production to regions with lower costs of labor and other inputs, often as a consequence of fragmentation of production and extended participation in global value chains. A technology transfer to weaker EU regions improves their employment rates, enhances overall economic efficiency and competitiveness, but keeps the regions exposed to the phenomenon known as “regional depression trap.” The paper identifies the policy recommendations that may contribute to increase of the regional competitiveness. In particular, the support of high value added sectors with high-wage employment provides stimuli for dynamic growth, and, taking into account the current trends of production automatization and the spread of international fragmentation of production stages, may provide sustainable development of the regions. 
regional competitiveness index, “smart specialization”, employment structure, EU regions, panel data analysis 


Repository of Institute of Regional Research Semak, B. B. (2018). Potentsial formuvannya i rozvytku kreatyvnoho prostoru ekonomiky [Potential of the formation and development of the creative space of the economy]. Rehional'na ekonomika - Regional Economy, 87 (1), 152-153. Retrieved from [in Ukrainian].
Sources: 1

Repository of Institute of Regional Research Semiv, L. K. (2018). Strukturni zrushennya natsional'noho rynku pratsi: vid teoriyi do praktyky [Structural changes in the national labor market: from theory to practice]. Rehional'na ekonomika - Regional Economy, 87 (1), 154-156. Retrieved from [in Ukrainian].
Sources: 1

Repository of Institute of Regional Research Davymuka, S. A. (2018). Reformy v Ukrayini: politychni ta sotsial'no-ekonomichni naslidky [Reforms in Ukraine: political and socio-economic implications]. Rehional'na ekonomika - Regional Economy, 87 (1), 157. Retrieved from [in Ukrainian].
Sources: 1

Repository of Institute of Regional Research Trynko, R. I. (2018). Analiz i monitorynh v upravlinni konkurentospromozhnistyu vyshchoyi osvity Ukrayiny [Analysis and monitoring in the management of the competitiveness of higher education in Ukraine]. Rehional'na ekonomika - Regional Economy, 87 (1), 158-160. Retrieved from [in Ukrainian].
Sources: 4

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