Scientific and practical journal
Regional Economy

Regional Economy -- Year 2018, Issue 4(90)

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Regional Policy and Territorial Development

Repository of Institute of Regional Research UDC 330.3:330.15:342.35(477); JEL О13, Q21, Q28, Q32
Khvesyk, M. A., Bystryakov, I. K., & Klynovyi, D. V. (2018). Yevrointehratsiynyy kontsept zabezpechennya staloho prostorovoho rozvytku Ukrayiny [Eurointegration concept for ensuring sustainable spatial development of Ukraine]. Rehional'na ekonomika - Regional Economy, 90 (4), 5-16. Retrieved from [in Ukrainian].

The article is devoted to the conceptual approaches to the realization of Ukraine’s European integration aspirations through the provision of its sustainable spatial development by the innovative mechanisms of the systemic economy, decentralization and the involvement of power and business cooperation through the mechanisms of public-private partnership. The purpose of the publication is to outline the general European integration concept of ensuring sustainable spatial development of Ukraine, which is built on the application of various forms of public-private partnership (PPP) instruments in the current public sector insolvency to ensure sustainable and balanced development of the territories and their competitiveness in a global economy. The main way of improving the economic and legal conditions of PPP in the use of natural resources in Ukraine should be an institutional way. According to this approach, the main conductor of economic activities with the natural assets should be a separate structure - an efficient private or public-private user in conditions of the expansion of community rights in the use of natural assets. The prospects and issues of the development of public-private forms of spatial organization of joint activities of government and business are associated with the introduction of European spatial development management forms with the participation of business structures and public associations based on the type of Regional Development Agencies (RDAs), including project offices of public-private partnership and using the achievements of the business ecosystem theory, the possibilities of interactive electronic geographic information systems and principles and approaches of the platform economy in the future. The basis for implementing the public-private partnership model for the local communities of Ukraine should be: democratization of the management system; overcoming corruption phenomena; ensuring transparency of decision-making; spreading the principles of representative democracy; completion of association of territorial communities; formation of plans and realization of projects of local development; strengthening of citizens’ participation in the implementation of local policies; development of non-governmental organizations; ensuring effective cooperation between the public and non-governmental sectors and widespread use of the concept of public-private partnership as an effective mean of solving urgent local economic, social and ecological problems. 
Eurointegration, sustainable spatial development, natural resources, public-private partnership 

Repository of Institute of Regional Research UDC 352/354:330.837:330.341.1(477); JEL O18
Mokiy, A. I., Pavlikha, N. V., Naumenko, N. S., & Datsko, O. I. (2018). Instytutsional'ne zabezpechennya innovatsiynoho rozvytku terytorial'nykh hromad Ukrayiny [Institutional provision of Ukrainian local communities’ innovative development]. Rehional'na ekonomika - Regional Economy, 90 (4), 17-27. Retrieved from [in Ukrainian].

The institutional principles of Ukrainian territorial communities’ innovative development are considered in the article, the theoretical innovative regional development basis and territorial communities’ development threats are analyzed. Taking into account the theory of autonomous poseism, the territorial community is defined as the basic institutional unit of self-reproduction of the peoples, that’s why at the level of the territorial community the demographic, resource and institutional reproduction is supplied. While regional innovations are implemented, the impact of the changes on to these indicators should be extrapolated. The results of the implemented programs within the reform of the administrative and territorial system in Ukraine are outlined. It is confirmed that the growth of budget revenues of the joint territorial communities, however, mainly is a result of budgetary subventions, rather than the introduction of innovative forms of own territorial communities’ socio-economic development. The paper outlines significant contradictions and inconsistencies in the legal framework, which complicate the effective implementation of administrative and territorial reform, and as a result, institutionalized “traps”, in particular concerning the incorrect translation of international legal acts, institutional uncertainty of ownership rights to municipal resources, the lack of territorial communities’ registers formation, etc. Accordingly, the uncertainty of the communal resources’ ownership, its inadequate accounting causes shadowing of a significant proportion of local communities socio-economic processes, and hence the limitation of the innovation development basis, reflected in the low efficiency of economic activity of territorial communities as management entities and their innovation development.
The ways of improvement of the institutional basis of Ukrainian territorial communities’ innovative development are proposed, first of all due to the registration of members of territorial communities, municipal resources, as well as the development of institutional supplement of territorial communities’ innovative development by improving institutional forms of economic activity, as well as improving the domestic normative and legal basis for their development at the state, regional and local levels. 

Repository of Institute of Regional Research UDC 332.13:338.26.015; JEL O18, О20
Hrechana, S. I., & Rohozyan, Yu. S. (2018). Udoskonalennya metodychnoho kontentu z pytan' stratehichnoho planuvannya rozvytku ob’yednanykh terytorial'nykh hromad [Improvement of methodical content on strategic planning development of the amalgamated territorial communities]. Rehional'na ekonomika - Regional Economy, 90 (4), 28-38. Retrieved from [in Ukrainian].

The presented article analyzes the problematic issues related to the formation of the strategic development documents of the newly formed (amalgamated) territorial communities in Ukraine. It is noted that in the context of decentralization each community needs to have a quality program and target documents (the Strategy and the Plan (Strategic plan) for further socio-economic growth. The authors prove that the processes of identifying issues and strategic vision of development, its main priorities and objectives, possible ways of their implementation and the necessary resources are quite difficult for members of the communities, as they do not have appropriate professional knowledge and practical experience. A clear methodological framework is emphasized for the effective organization of strategizing in addition to special knowledge of the participants. To accomplish the study objectives, the current methodological content that details the organization and implementation of strategic planning processes in communities is analyzed. In this way the authors analyze the normative-legal acts, approved by the Ministry of Regional Development, Construction and Housing and Communal Services of Ukraine, as well as handbooks and methodics, prepared by experts of international and national public institutions. An overview of positive features of the relevant documents and their weaknesses are outlined. The problem situations that can occur in the territorial communities due to errors in strategic planning processes organization are emphasized. For solving the complex problems associated with the imperfection of methodical content in the field, the authors propose the ‘Guidelines for the elaboration of Strategy and the Strategic Development Plan for the newly formed (amalgamated) territorial communities in conjunction with the development strategy of the region. These are full methodological tools that enable the development of a quality strategy and strategic development plan. Guidelines are consistent with the current regulatory framework and comprehensively complement the existing methodological content of the regional development by Ministry, containing a description of the step-by-step strategic planning process, given the characteristics of participation and communication between entities, detailed relationships of the major planning documents in development with internal and external regulatory legal acts of the highest level, etc. Correlation of the main provisions of the advanced methodological content with the current regulatory legal acts in the sphere of strategic planning in the context of the sections and stages was built. 
amalgamated territorial communities, development, strategic planning, program and target documents, guidelines 

Repository of Institute of Regional Research UDC 330.366:334.012.74; JEL O18, O22, H30
Patytska, Kh. O. (2018). Napryamy stymulyuvannya ekonomichnoho rozvytku terytorial'nykh hromad v umovakh detsentralizatsiyi [The directions of territorial communities’ economic development stimulation in the conditions of decentralization]. Rehional'na ekonomika - Regional Economy, 90 (4), 39-48. Retrieved from [in Ukrainian].

The article is devoted to the substantiation of theoretical and methodical principles and practical recommendations regarding the potential of territorial communities’ financial and economic formation in the context of local self-government reform. The peculiarities of the territorial community development in the conditions of local self-government reform are determined. The emphasis is placed on the fact that the local self-government reform is based on the disposition principle, according to which the purpose of the reform is to enable territorial communities to manage their own resources effectively in order to ensure their development. The ways of activating the entrepreneurial environment at the level of local self-government bodies are suggested. The research conducted in this paper showed the short-term interests domination and lack of a strategic vision of territorial communities’ development in Ukraine, which has a negative impact on the business environment in the community. The main factors of territorial communities’ competitiveness for attracting investment resources and entrepreneurial structures into their territory are determined. The paper develops organizational and economic approaches to activating the entrepreneurial environment in the territorial communities through the effective use of local self-government bodies’ powers in the area of establishing local taxes and fees, planning and disposal of land resources, disposal of communal property, encouraging entrepreneurial activity of community residents. The necessity of establishing local taxes and fees for a period of three years in order to ensure the stability and possibility of adapting business entities to appropriate conditions, the use of tax breaks and the reduction of local taxes rates and fees by local authorities as a short-term measure to attract new entrepreneurial structures to the community is emphasized. The necessity to stimulate local self-government bodies to encourage entrepreneurs and provide official registration of entrepreneurial activity on the territory of the community is explained. The research substantiates the land resources role in shaping the community’s financial and economic potential, in particular, the need to formulate a planning and functional structure of the settlement, taking into account the strategic plans or programs of territorial community development in order to ensure the most effective use of land and socio-economic development. 
territorial community, business environment, local taxes and fees, land management, decentralization 

Repository of Institute of Regional Research UDC 330.14:332.13(477); JEL G21, R11, R58
Vakhovych, I. M., Kaminska, I. M., Dorosh, V. Yu., & Kaminska, D. V. (2018). Stratehichni oriyentyry kapitalizatsiyi ekonomik rehioniv Ukrayiny [Strategic guidelines of economies’ capitalization in the regions of Ukraine]. Rehional'na ekonomika - Regional Economy, 90 (4), 49-55. Retrieved from [in Ukrainian].

Capitalization is a top-priority process in ensuring the development of the economy in the leading countries of the world. But, in the strategy and policy of development of the economy of Ukraine and its regions, unfortunately, there is no clear line of action and systematic measures in the direction of capitalization of various forms of capital in the economy. However, only the well-grounded strategy of capitalization of economies of the regions of Ukraine is capable to overcome the set of economic and social problems in our country. The purpose of this article is to substantiate the strategic guidelines of capitalization of the economies of the regions of Ukraine. The methodological base of the research was the developments of economic science according to the study of national economics, regional development, regional economy and capitalization. The objective necessity and urgency of increasing the level of capitalization of the economies of regions of Ukraine is substantiated. The typology of capitalization of the economies of the regions of the state is developed according to the levels of intensity of such processes as accumulation of capital, investment of capital, creation and distribution of added value, which determine and comprehensively characterize the capitalization of the region’s economy. Differentiated approach to the development of strategic guidelines of capitalization of the economies of the regions of Ukraine which is based on the type and level of capitalization of the economy of each of them is proposed. Differentiated approach allows to take into account the initial conditions (the intensity of processes of capital accumulation, the intensity of capital investment processes, the intensity of the processes of creation of added value and optimal distribution of it) and individual needs of the region and purposefully ensure the capitalization of strengths and overcome the weaknesses of development of economies of the regions. The strategic guidelines of capitalization of the economies of each region of Ukraine are determined, in particular, for the city of Kyiv – maintaining the achieved level of capitalization of the region’s economy and its enhancement; for Dnipropetrovsk Oblast – region’s economy restructuring; for Kyiv Oblast – efficiency of the formation and usage of capital; for the other regions of Ukraine – budget supporting, identification of potential sources of the capital and their effective usage. The key dominants of strategic guidelines of capitalization of the economies of the regions of Ukraine are considered. The conducted research allows to choose the most acceptable strategic guideline of capitalization of the economy to everyone regions of Ukraine. The capitalization of the economies of the regions of Ukraine contributes to the capitalization of national economics and to the increasing the level of its competitiveness. 
capitalization, regional economics, strategic guidelines, capital of region, capital accumulation, capital investment, creation and distribution of value added 

Repository of Institute of Regional Research UDC 338.43:332.1(477); JEL L66, O15, Q18
Fera-Klemontsa, O. Yu. (2018). Tendentsiyi rozvytku prodovol'choho zabezpechennya rehioniv Ukrayiny [Tendencies of food provision development in Ukrainian regions]. Rehional'na ekonomika - Regional Economy, 90 (4), 56-63. Retrieved from [in Ukrainian].

An importance of the issue of food provision in the state and its regions used to be and still remains to be one of the most urgent, just as the conditions of its achievement. It stipulates full provision of a country and its regions with own production and importing products only in case of necessity. Considering the food provision as a set of economic relations in society that emerge in the process of provision of all society members with food in correspondence with the quality and quantity norms, the state should guarantee the availability, stability and efficiency of the use of food. Food provision of a region is a complex multidimensional phenomenon, which combines economic, social and political aspects. The paper aims to evaluate the level of region’s provision with food and to define major priorities of its forming. The paper examines the specifics and major problems of food provision in the regions of Ukraine. The dynamics of annual consumption funds and consumption per capita of main foods products by Ukrainian population is outlined. The number of food products that grew and fell in the period under research is analyzed. The regions’ rankings in overall agricultural production in 2017 are formed. The dynamics of gross agricultural production in general as well as animal husbandry and crop production per capita is defined. The ways to implement state and regional policies on strengthening of food provision are suggested: improvement of purchasing power of population; reduction of tax burden for agricultural producers; optimal balance of food procurement for exports and imports; minimizing the prices disparity for agricultural and industrial production, when the money received from the sales of agricultural products does not cover the production costs; improvement of cultural and educational levels and staff and social maintenance of a village; planning of stable state orders for rural producers that secure favourable conditions of products realization. 
food provision, agriculture, animal husbandry products, crop production, consumption of products 

Rural Development

Repository of Institute of Regional Research UDC 332.3:349.41(477); JEL Q24, Q52
Zalutskyy, I. R. (2018). Pryrodno-sil's'kohospodars'ke rayonuvannya zemel' v Ukrayini: osoblyvosti normatyvno-metodychnoho zabezpechennya ta problemy systemnoho zdiysnennya [Natural and agricultural land regionalization of Ukraine: the peculiarities of regulatory and methodical provision and system implementation problems]. Rehional'na ekonomika - Regional Economy, 90 (4), 64-73. Retrieved from [in Ukrainian].

This article deals with formation of the state policy regarding natural and agricultural land regionalization of Ukraine. The conceptual principles in the sphere natural and agricultural land regionalization laid down by "The Land Code of Ukraine", the Laws of Ukraine "On Land Management " and "On Land Protection" are outlined. The specifics are revealed: natural and agricultural land regionalization should be carried out exclusively in the order of land management as a systematic measure in the sphere of land protection; natural and agricultural land regionalization in Ukraine is the basis for land valuation, i.e. it is carried out by land management, and not in the process of land valuation; the division of land by purpose is carried out in order to record and reflect the position of land in a single system classification taking into account the natural conditions and agro-biological requirements of agricultural crops, the development of economic activity and the priority of environmental safety requirements; the establishment of requirements for the rational use of land in accordance with the region (zone) and definition of territories requiring special protection from anthropogenic influence are the components of natural and agricultural land regionalization; the Cabinet of Ministers of Ukraine defines the Procedure for implementation of natural and agricultural zoning of land. The retrospective analysis of the regulatory and methodological providing in the sphere of natural and agricultural land regionalization is carried out and the peculiarities of its formation and updating are indicated. The author emphasizes that in 2005-2010 the natural and agricultural land regionalization was reduced to a separate one scientific development at the national level and some intra-regional projects, which have not received official approval. The paper proves that before the natural and agricultural regionalization was carried out in Ukraine, the laws doubtfully recorded some classifications of territorial taxonomic units solely for implementation of land normative monetary valuation, in particular: the list of natural zones with their administrative districts by regions of Ukraine; the list and codes of natural and agricultural areas within regions of Ukraine; the list of natural and agricultural zones and the mountain natural and agricultural regions within Ukraine. The existence of methodological and legal differences in a modern government mechanism of natural and agricultural land regionalization as an integral part of the national (pan-Ukrainian) normative monetary valuation of agricultural land is proved and the threats of its implementation are emphasized. 
natural and agricultural land regionalization, regulatory and methodological providing, problems of system implementation 

Ecological Policy and Nature Management

Repository of Institute of Regional Research UDC 332.1:502/504:334.012.74; JEL R38
Butko, M. P., & Petrovska, A. S. (2018). Metodychni pidkhody do ekolohizatsiyi prostorovoho rozvytku v umovakh detsentralizatsiyi vladnykh povnovazhen' [Methodical approaches to the ecologization of the spatial development in the conditions of authorities’ decentralization]. Rehional'na ekonomika - Regional Economy, 90 (4), 74-84. Retrieved from [in Ukrainian].

The problem of providing the sustainable development is aimed at the harmonizing of social, economic and environmental spheres of social development. The purpose of the article is to substantiate methodological approaches to ecologization of spatial development in Ukraine at the present stage of state formation, which is characterized by strengthening of the decentralization authority processes. The article takes into account the new rate of reasonable and balanced growth and proves approaches to the assessment of ecological processes of the region’s development. In the conditions of the decentralization of the social systems’ management processes, the importance of the trajectory of sustainable development of territorial communities and other taxonomic units has been updated. The methodology for the territorial community’s development in the conditions of institutional changes has been approved. The current practice shows that at the level of the territorial communities the parameters of their sustainability are not calculated or analyzed, though, in the conditions of the management processes decentralization it is significantly important. In the field of environmental protection it is expedient to introduce monitoring of the settlements pollution level and to strengthen the control of human waste management. For the comprehensive assessment of the territorial community’s development we propose to use such a criterion for evaluation as a sub-regional upgrade index. The base for the index could be statistical information, which is formed by the classical method of surveys. It could become a marker of the investment attractiveness of a particular territorial community and the task for the executive power and local government to take measures for the integrated and balanced development of all taxonomic units of the state. Effective regional development management is the significant factor of the productive forces modernization of the whole state, especially in the conditions of intensified globalization and integration processes. Under these circumstances ecologization problems deserve special attention. Political direction on the authority decentralization demands increased attention from the local authority to the environmental management and environmental protection. 
spatial development, spatial system, indicators, ecologization, decentralization 

Financial Policy

Repository of Institute of Regional Research UDC 330.564.2:005; JEL E64, E25, D31
Zherebylo, I. V., & Kolodiy, S. K. (2018). Metody ta instrumenty derzhavnoho rehulyuvannya dokhodiv naselennya: teoretychnyy aspekt [Theoretical review of the main methods and instruments of the state regulation of the population income]. Rehional'na ekonomika - Regional Economy, 90 (4), 85-93. Retrieved from [in Ukrainian].

The problem of income differentiation that exists in our society requires appropriate state regulation, which must take into account the peculiarities of our post-transformational economy and effectively influence the level of incomes of the population. Therefore, the purpose of the article is the theoretical analysis of methods and instruments of state regulation of incomes and identification of such instruments that play a major role in the process of formation and redistribution of incomes at this stage. State regulation of incomes is a process of influence of state bodies on social and economic processes, which are related to the formation of primary and secondary incomes of the population. Methods of state regulation of incomes are the ways the state influences the process of formation and redistribution of incomes. The main instruments of state regulation of incomes are the definition of minimum wages and other social guarantees; Unified tariff grid, as an instrument for regulating the level of remuneration of employees of the budget sphere; indexation of incomes; expenditures on state social transfers and level of tax burden. The instruments of state regulation of incomes can be divided into those that affect the formation of primary incomes, those involved in the redistribution of income and the formation of secondary incomes of the population and those that affect both the formation of primary and the formation of secondary incomes of the population. Thus, state regulation of incomes is a system of forms, methods and instruments of the state's influence on the process of formation of primary and secondary incomes, aimed at reducing the level of income differentiation of the population. 
population incomes, primary and secondary incomes of population, state regulation of incomes, methods of state regulation of incomes, instruments of state regulation of incomes 

Repository of Institute of Regional Research UDC 336.14:314.17:364(477); JEL H55
Hrynchyshyn, I. M. (2018). Napryamy pidvyshchennya efektyvnosti vykorystannya byudzhetnykh koshtiv na sotsial'nyy zakhyst v Ukrayini: rehional'nyy ta mistsevyy vymiry [Increasing the efficiency of using budget funds for social protection in Ukraine: regional and local dimensions]. Rehional'na ekonomika - Regional Economy, 90 (4), 94-102. Retrieved from [in Ukrainian].

The article highlights strategic guidelines for increasing the efficiency of budget funds use for social protection at the regional and the local levels in Ukraine. Strengthening of the processes of regional differentiation of both the total local spending on social protection (social security) and the size of these payments per capita led to significant differences in the levels of financial security of people on a territorial basis. Given that the issue of proper funding of social protection and social security of the population is both the question of sufficient financial resources allocation to the sector and the mechanisms of allocation, priority measures in the context of reforming of the branch are to identify inefficient local spending and directing released funds for raising material support of people who find themselves in difficult circumstances. On the basis of the research, the author establishes common approaches to planning, allocation and financing incentives to avoid inefficient use of financial resources in terms of verification of benefits and recipients of benefits and, in the long term, a gradual replacement of such type of social protection as benefits with other (more socially fair) ones that would meet the basic purpose of social protection - providing material support to disadvantaged people. For reducing regional differentiation in terms of social assistance to low-income individuals, the priority is to develop mechanisms of targeting enhancement and large-scale policy of reintegration of these people to employment taking into account regional specifics. Leveling of differences in load and funding of bodies providing social services requires assessment of the needs in social services, taking into account regional differences of social services beneficiaries. It is designated that adjustment of the process of decentralization of social protection is to be focused on the delineation of responsibilities of local governments in provision of social services; administration of social services at the local level; transition from funding institutions to funding social services with the use of social order. 
social protection, social privilege, social assistance, social services, region, budget resources, finances 

Repository of Institute of Regional Research UDC 336.74:331.556.46:332.1; JEL D10, H31
Kluchnyk, L. V. (2018). Potentsial vykorystannya mihratsiynoho kapitalu yak resursu rozvytku ekonomiky rehionu [Potential of the use of migration capital as a resource for the development of the region’s economy]. Rehional'na ekonomika - Regional Economy, 90 (4), 103-109. Retrieved from [in Ukrainian].

The labor migration is one of the factors that increase household incomes. Given the fact that the scale of external labor migration is 14-15% of the total population, it can be argued that income from labor migration in modern conditions is an essential source of aggregate household incomes. The dynamics of the main indicators of Ukrainian labor migration abroad has been tracked. According to the calculations of the National Bank of Poland, the total earnings of Ukrainians in Poland in 2016 amounted to 12.6 billion zloty against 3.6 billion in 2013. The amount of transfers to Ukraine amounted to 8.1 billion zloty (2.22 billion dollars USA), or 2.5 times more than in 2013. These funds play an important role in the social shock absorber, which is a factor in counteracting the poverty of many Ukrainian households. The growing tendency of activation of migration flows in recent years has been substantiated. From 2007 to 2013, the volumes of transfers to Ukraine have steady dynamics to increase, and the decrease in this indicator in 2009 is due to the impact of the financial crisis. In 2014-2015 there was a sharp decline in the indicator, which is explained by the difficult situation in the country. And since 2016, the volume of transfers has increased again. An estimation of remittances of labor migrants to Ukraine by sources of formation and by channels of receipt is carried out. The scale of domestic labor migration and the volume of migration capital are considered. The main directions of using remittances of labor migrants by households of Ukraine are outlined and analyzed. Ukraine receives significant sums of private transfers from abroad. According to the National Bank of Ukraine, in 2016, 5.4 billion dollars were redeployed to the country. The emphasis is placed on the financial and administrative levers of state money transfer policy. The directions of attraction of labor migrants’ remittances for the development of the country are investigated. The necessity of state regulation of migration processes in the context of capital migration is proved. The foreign experience, for example, the countries of Latin America, the Baltic States and the USA concerning the use of migration capital is considered. 
labor migrants, migration capital, money transfers of labor migrants, private transfers, money transfer channels 

Economics and National Economy Management

Repository of Institute of Regional Research UDC 330.341:332.021.8-048.77(477); JEL L86, O18, R58
Davymuka, S. A., & Fedulova, L. I. (2018). Tsyfrova transformatsiya rehioniv Ukrayiny [Digital transformation of Ukrainian regions]. Rehional'na ekonomika - Regional Economy, 90 (4), 110-121. Retrieved from [in Ukrainian].

The practical sphere of solution of digital economy development problems is the global megatrend, which gains utmost importance at regional level in answer to system challenges. However, the issues of substantiation of preconditions and necessity to introduce the concept of digital regional development in Ukraine remain to be underexamined. Increasing attention should be paid to the phenomenon of spatial differences («digital» inequality, «digital» gap, etc.), which is among the priorities of solution of urgent issues regarding the unequal development of cities and regions. The paper aims to reveal the features and problems of digital economy forming in Ukrainian regions and to develop strategic priorities of strengthening of the digitalization process. The analysis of existing regulative basis of Ukraine of strategic direction shows that legislation covers the issues related to region’s digital economy quite sketchy. Statistical analysis revealed the peculiar tendencies of «digital inequality» as the key problem of digital economy forming in Ukrainian regions. The paper proves that digital economy development brings into fore many state regional policy issues, which should not only be clearly defined, but also systemically solved. The authors characterize some «best practices» of digitalization processes, the analysis of which shoved that some regions begin active participation in the process of forming and implementation of strategic decisions in digital economy, trying to secure their long-term competitive advantages at the markets of new types of technologies, goods and services. Suggestions over strategic priorities of digitalization process strengthening (digital transformation) at regional level as the component of modern state regional policy are developed and substantiated. The paper argues that while the issues of digital economy and society development do not raise any doubts in the leading countries, the processes take place rather slow in Ukraine and with a delay in terms of political actions at state and regional levels that meet the challenges of global trends. All the abovementioned requires the development of appropriate strategic documents; in particular, the IT business participants along with the representatives of regional authorities should form the strategies and individual roadmaps of regions in terms of digitalization development and achievement of the key socio-economic parameters. Major activities on reduction of digital inequality can be conducted in the framework of development and implementation of state subprogram «Elimination of Digital Inequality» as the component of state program «Creation of digital infrastructure in Ukraine», which should be developed and adopted legally. 
digital transformation (digitalization); digital economy, «digital inequality», regional policy, strategic directions 

Repository of Institute of Regional Research UDC 338.45:665.75; JEL Q57, Q58, Q42, P28
Yakubiv, V. M., Maksymiv, Yu. V., & Hryhoruk, I. I. (2018). Klasyfikatsiya instrumentiv derzhavnoyi stymulyatsiynoyi polityky rozvytku rynku biopalyva [Classification of instruments for state stimulation policy for biofuel market development]. Rehional'na ekonomika - Regional Economy, 90 (4), 122-130. Retrieved from [in Ukrainian].

The article describes the classification of instruments of the state stimulation policy for the development of the biofuel market, the task of which is to create conditions for the economic, ecological and social interest of the participants in the biofuel market on the basis of implementation of the requirements of legislation and requirements of society. The following classification of instruments of state incentive policy for the development of production and consumption of biofuels made from sustainable biomass has been formed: normative-legal instruments, economic-legal instruments (market and fiscal), and organizational-information instruments. Introduction of a biofuel exchange, which is a kind of electronic platform for trade in biological fuels, has been determined as the most effective market incentives (as part of economic and legal instruments). It is substantiated that normative-legal instruments play a special role, since most of the above-mentioned components of the proposed classification can be realized precisely through legal regulation. The use of instruments of socially responsible interaction is proposed, the essence of which is a combination of actions that ensure socially responsible behavior of the state, business entities and consumers of biofuels in order to achieve the common goal of increasing the production and consumption of environmentally friendly biofuels. Instruments of socially responsible interaction include informing about the possibilities of using biomass as a fuel in individual heat supply. It can be realized by publishing such information (with contact details of potential suppliers) on the site of utility companies or other specially created platforms. The possibility of this instrument implementation will become even simpler in practice, when it is legally secured. It is substantiated that taking into account the existing potential for the formation of sustainable biomass in Ukraine, bioenergy is capable to be the most promising renewable energy source, but it is possible only if normative-legal, economic-legal (market and fiscal), and organizational-information instruments will be applied at the level of the state, society and business structures. 
biofuel market, bioenergy, state stimulation policy, state stimulation policy instruments, socially responsible interaction instruments, stakeholders, energy security, strategy 

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