The article proves that an isolated, non-systemic approach to the analysis of potential sales markets when justifying production placement may not give the right result, since the spot will not be guaranteed to be the best for placement, because even in simple situations there are many other options for targeting sales markets when justifying placement production. It determines that with a systemic approach, variants of combinations of locally optimal production sites, the total production capacity of which is equal to the general (systemic) demand, will be compared. For each attractive place of production, a locally optimal place of production is determined from the list of existing attractive places of production. The article emphasizes that locally optimal locations cannot be directly compared with each other, as their choice is determined by orientation on different potential sales markets. With three potential sales markets, there will be 5 options for combinations of locally optimal locations (1 option, which involves placing production in three spots, 1 option involving the placement of production in one spot, 3 options involving the placement of production in two spots), which form competing variants of systemically optimal spots for the placement of production. The application of the proposed systemic approach to the justification of production placement and the corresponding methodology is demonstrated on a conditional example with geographic coordinates. The systemic approach offered in the article for justifying the optimal location of the production of a single good can be adapted to a more complex or compound situation when the optimal location of the production of several goods is justified at the same time (including when one of the goods is used for the production of other goods). The most important advantage of the systemic approach is that it can be used in different branches of industry and agriculture as well.
location of production, sales markets, region, competition, efficiency, technologies
The article addresses the concept of tourism and recreation domain and emphasizes the ambiguous approaches to its interpretation and the lack of established understanding of the economic nature and structural composition of the domain. It offers to consider the tourism and recreation domain in the region as a component of its economic system where tourism and recreation activity takes place – economic activity directed at meeting the tourism and recreation needs of the local population and residents of other regions and countries based on the use of natural and other resources and factors with peculiar tourism and recreation attractiveness. The article specifies that resources and factors of natural and artificial origin (attractions) are the key factors in the forming of the tourism and recreation destinations as areas where the tourism and recreation activity and processes of interaction between tourists and vacationers with the relevant infrastructure take place. The quality of attractions is much determined by the sectoral structure of the tourism and recreation domain of the regions, which stipulates the importance of outlining the author’s understanding of the structure of tourism and recreation activity as such economic activity type as tourism and recreation activity is absent in the national classifier. The article suggests singling out sanatorium activities (providing economic entities with accommodation and sanatorium treatment in the region) and tourism and recreation activity (providing economic entities with tourism, leisure, and other recreational and allied services in the region). In turn, tourism and recreation activity by resources attractiveness in the context of evaluating the economic competitiveness should be considered across the following types: natural resources factors-related (natural resources attractiveness) – cognitive hiking, sports and wellness, extreme, alpine skiing, environmental tourism, hunting, fishing, green rural tourism (agrotourism), wellness holidays; historical and cultural factors-related (historical and cultural attractiveness) – excursions, religious tourism, ethnocultural and festival tourism; commercial and social factors-related (commercial and social attractiveness) – business, entertainment, congress tourism, shopping. Key attractiveness factors are determined for each type. Their evaluation is the basic one for determining the development capacity and competitiveness of the domain in the region.
tourism and recreation domain, region, tourism and recreation activity, resources, attractiveness, tourism and recreation destinations
The article is devoted to the peculiarities of the regional development of Ukraine in the modern challenges of globalization. The main factors determining the nature and quality of strategic planning in different regions of Ukraine include the consequences of military aggression by Russia and the geopolitical changes caused by it on the European continent. New opportunities are open for the oblasts of the Western Region of Ukraine, given the prospect of further rapprochement between Ukraine and the EU. The main features of the current stage of globalization and European integration in the context of their impact on changing the principles and directions of regional development strategy in Ukraine are outlined. The peculiarities and nature of the impact of current global transformations on the development of individual regions of Ukraine are analyzed. The article notes that the specifics of the functioning of the regional economy in the current situation are determined primarily by tasks related to the logistics of the Ukrainian army. It is important to create appropriate conditions for the relocation of businesses from regions close to the war zone, as well as to provide the necessary social and economic support to internally displaced persons. The main global threats to the oblasts of the Western Region of Ukraine are caused by the rupture of traditional economic ties and increasing international competition for natural, financial, and human resources. The priority directions of adaptation of local governments and business circles of the Western Region of Ukraine to modern challenges of globalization are based on more effective use of European integration potential. The article includes suggestions for state authorities of Ukraine on priority areas for improving the principles and mechanisms of strategy at the regional level. It emphasizes the importance of implementing the model of end-to-end strategic planning of territorial development, starting from the State Strategy of Regional Development and ending with strategic development plans of individual communities. Strategies at the supraregional, regional, and subregional levels should be intermediate. In addition, the strategic plans of the respective territories should be implemented through sectoral programs for several years. The priority directions of improvement of the territorial strategizing system in the Western Region of Ukraine are developed.
globalization, Western region of Ukraine, strategizing, strategic planning, local self-government
Russia’s full-scale war against Ukraine has catastrophically exacerbated the socio-demographic problems in Ukraine and its regions. Powerful wave of forced resettlement has, on the one hand, put enormous pressure on the economic and social spheres of internally displaced persons (IDP) donor regions and, on the other hand, radically changed the demographic group in all regions of the country. The population of socially vulnerable categories has significantly increased: children, youth, the elderly, the disabled, and the lonely. Further military escalation leads to the transition of many people to the categories of vulnerable groups, while they did not belong there before the Russian invasion. It is due to the death of relatives, including loss of a breadwinner, injury, poor health, loss of housing, all property, or significant parts of it, loss of employment or business, other economic losses, inability to study, emotional and psychological disorders, etc. The majority of the population in these categories is not in a state of social maladaptation but does not have limited resources for livelihoods and social competitiveness. Timely and sufficient provision of social assistance to these socially vulnerable groups can significantly reduce the severity of socio-economic problems and provide them with a normal life quality. As of early 2022, the demographic situation in the Carpathian region of Ukraine can be described as relatively unfavorable: falling birth rate, irreversible process of demographic aging, reducing share of youth, and a high proportion of people with special needs. In addition, the Carpathian region has a much higher average household size than other macro-regions of the country, a higher share of households with children, and a higher level of employment of household members. Analysis of socio-demographic statistics in previous years and current demographic processes shows a likely acceleration in the growth of the share of socially vulnerable groups and the number of IDPs and residents of the region. The main tasks of regional and local authorities are to solve urgent problems of IDPs, expand social infrastructure, and ensure effective employment in the region, socialization of IDPs and their integration into society, and development and implementation of regional programs to improve demographic reproduction.
socio-economic vulnerability, Carpathian region of Ukraine, internally displaced persons, socially vulnerable groups, migrants, demography
The experience of conducting sociological surveys on migration mobility of Ukrainian youth is analyzed, including nationwide surveys of migrant workers with specifics for different age groups, surveys of youth commissioned by public authorities, and individual surveys of scientists and experts in special studies. A review of existing surveys allowed to identify the most extensive and authoritative studies and conduct a critical evaluation. These include “Youth of Ukraine” (commissioned by the Ministry of Youth and Sports of Ukraine), “Migration activity of student youth of the Carpathian region of Ukraine” (Dolishniy Institute of Regional Research of NAS of Ukraine), “Research on migration sentiments of student youth in the conditions of visa liberalization” and “Study of migration attitudes of students of Lviv (Lviv Polytechnic)”, “Social aspects of the transition from school to university students of rural schools and schools of national minorities of Ukraine” (Taras Shevchenko National University of Luhansk), “Migration moods of student youth” (Uzhgorod National University). The article reveals that the results of the national surveys “External labor migration of the population of Ukraine” for 2008, 2012, and 2017 provide very limited information in terms of different age groups. It argues that despite some experience, there are no systematic sociological surveys of migration mobility of youth in Ukraine to determine the potential of migration and the causal characteristics of migration movements. Given the rapidly growing potential of youth migration in Ukraine, the positive dynamics of educational emigration and the need for sociological surveys of youth on the impact of migration mobility on the development and capitalization of human potential are substantiated. The results of such survey will provide information on how migration impacts the potential of youth and the development potential of the donor territory. The assessment of migration across various components of human potential confirms its impact on the development of youth potential, as well as income and wealth, and reveals the level of its capitalization. The authors emphasize an urgent need to conduct situational surveys of youth on the potential of migration and re-emigration intentions during mass forced displacements.
migration mobility, migration potential, youth, human potential, sociological survey
Today, human potential is the basis for the growth of the state’s capacity both on the domestic and international markets and as a whole, the basis for the socio-economic progress of society. Russia’s unprecedented invasion of Ukraine and the deployment of a full-scale war on the territory of our country led to immediate changes in the demographic situation of the country, which in turn caused corresponding consequences for the economy, which will be felt for a long time. Since the beginning of the war, more than 6 million people have left the territory of Ukraine; approximately 7.7 million have been forced to leave their homes and become internally displaced persons. Despite a considerable amount of research, today, the issue of preserving the human potential of Ukraine remains especially relevant in the conditions of Russian aggression. Thus, the purpose of this article is to outline the current problems of the loss of human potential as a result of Russian aggression, identify the opportunities, and search for ways to preserve and reproduce it, as well as implement an effective scenario for the management of human potential both at the national and regional levels. The article examines the essence of the human potential category and defines the author’s interpretation of the content of this category. Certain assumptions are also made regarding the economic prospects and the determining role of the demographic factor for the further economic future of Ukraine. The main ways to preserve the human potential of the state, as well as further reproduce it in the conditions of post-war economic recovery, are outlined. The article substantiates that in the future, human capital will play a decisive role. In the long-term perspective, the demographic factor may become decisive for the development of Ukraine’s economy. Today, in Ukraine, the categories of human potential and human development as interdependent and complementary categories are forced to function in the coordinate system of military-economic relations. Therefore, the modern economic policy of the state requires the strengthening of measures not only of the military-economic but also primarily of social-cultural and moral-ethical development of human potential within the country.
Identification of the governmental policy priorities in education and its needs on the level of local communities enables the substantiation of advantages of the network approach to the regulation of educational institutions’ competitiveness. Since the network approach stipulates the creation of political, professional, labor resources, and international and functional networks of stakeholders in education, there can be informational, service-providing, problem-settling, and social responsibility-related functional networks. Taking into account the need for educational institutions’ transition to the activity-related paradigm of social institutes’ development increasingly relevant in force majeure (COVID-2019 pandemic, Russia-Ukraine war of 2022), the up-to-date practices of social responsibility in education, including in martial law, should be determined. Therefore, the governmental policy of the educational institutions’ competitiveness maintenance in Ukraine is a topical issue nowadays. The article aims to substantiate the priorities of implementation of the governmental policy in education in conditions of authorities’ decentralization and current events. The article develops theoretical and practical foundations for making and implementing the governmental policy of the educational institutions’ competitiveness maintenance. The identified features of introducing the publicity principle in administrative processes enable the substantiation of the need to involve educational institutions in systemic interaction with the institutions of power. The special role of educational institutions in the development of communities and opportunities for their cooperation with local governments is emphasized. Other dimensions and opportunities for interaction between educational institutions and businesses, science, social infrastructure, society, and the population are determined. A matrix of interaction priorities relevant for educational institutions in Ukraine is suggested. The advantages of the establishment of multifunctional educational centers are mentioned among the most sought-after priorities. The article focuses attention on the importance of civic engagement and media activity of educational institutions and integration of educational institutions and community development strategizing.
educational institutions, competitiveness, governmental policy, decentralizaiton, martial law
The construction industry is the most attractive investment for both domestic and foreign investors, although the industry is developing in today’s modern conditions. Since the beginning of the war, it has been especially obvious that market companies are forced to adapt to the conditions, including changing suppliers, sales patterns, and marketing strategy. The effective functioning of construction enterprises depends on management decisions, which should be aimed at developing a strategy that would lead the enterprise out of financial instability. Approaches to the creation and implementation of management decisions should be based on the features of construction structures as a product, determined by the specifics of the construction process. The following features of the construction process are distinguished: a long period of the production cycle; the factor of natural and climatic, political, and economic conditions that create the need to take into account additional risks; seasonality of construction, when the pace of work decreases in the cold season; the impossibility of building a large number of objects at the same time. In order to support and ensure the necessary level of competitiveness, enterprises involved in the construction industry select priority areas of development, adapt to fluctuations in the external environment, maintain an appropriate level of economic security, and use the latest technologies for the organization of management processes. Construction companies that have enough experience in the real estate market themselves encourage and explain to the client the attractiveness of investing in certain objects. Usually, the investor offers three schemes of operation: buying companies for himself, investing with the purpose of resale, and investing with the purpose of renting. This article examines the process of attracting funds in schemes for the formation of financial resources of construction companies and their sensitivity to changes in the current market conditions.
construction, investment, derivative securities, property rights
The article argues that the developed transport infrastructure is quite essential for the maintenance of dynamic, balanced, and efficient functioning of all economic sectors in Ukrainian regions and the socio-economic development of the country as a whole. It emphasizes that as of the beginning of the war, Ukraine had a well-developed and powerful transport infrastructure that included railway, marine, river, road, air, and pipeline transport. The authors point out that the damage and destruction of transport infrastructure in Ukraine is currently a substantial problem for the shipment and delivery of humanitarian aid to the northern regions of Ukraine. The article aims to research the transport infrastructure losses in Ukrainian regions caused by hostilities and determine the perspectives of recovery and diversification of the transport logistics routes. It provides the analysis of the pre-war transport infrastructure condition in Ukraine, which shows that the development of public automobile routes in the country fails to meet the motorization needs and paces. The level of pre-war transport infrastructure development in Ukraine is compared to those of developed countries. The functioning problems of transport infrastructure and logistics centers caused by the Russian military aggression are analyzed, including the main transport infrastructure losses in Ukrainian regions from hostilities. The article argues that it is not sufficient to assess the efficiency of the transport network spatial distribution only based on the density of transport networks. European methodology based on the parameters displaying the person-centered approach to the assessment of the transport infrastructure efficiency and opportunities for its improvement should be applied to assess transport productivity. The approach provides that the productivity of transport networks is assessed by the parameters of their accessibility and proximity to the population. The article emphasizes the features of the pre-war regulatory and program frameworks for the processes of transport infrastructure modernization. A range of regulatory innovations developed by the Government to improve logistics and transportation in current realities is analyzed. The major obstacles to efficient transport logistics are outlined. The main constraints are determined, and favorable factors of the transport infrastructure development in Ukraine are identified. The article addresses the issues of transport routes and cargo traffic diversification. The main attention is focused on the perspectives of the transport infrastructure recovery and the search for new logistics routes for goods promotion.
transport, transport infrastructure, automobile routes, logistics, transport logistics, logistics flows, logistics system
The article provides an overview of the trends in the relocation of manufacturing companies to safe regions from territories where active hostilities have taken place. The main threats of the enterprises relocation under the war have been identified, in particular: disruption of economic ties; logistics challenges; lack of a qualified workforce due to the outflow of residents from the country; high cost, legal and technical complexity of relocation procedures; resource loss as well as goods, fixed assets, etc. during relocation. There are also mobility restrictions for certain types of enterprises due to their territorial «attachment» (primarily, agribusiness, major manufacturers and logistics enterprises). The growth share of business relocation abroad can be recognized as a threat to the balanced spatial development of Ukraine. It has been emphased that the state program for business relocation with appropriate financial assistance and support should be launched in order to foster the process within the country and reduce the rate of enterprises relocation abroad. Other important directions for improving and increasing the efficiency of the state policy of enterprises relocation include: expanding list of eligible regions for business relocation; development and implementation of an efficient system of leasing industrial equipment and provision of a state financial guarantee for enterprises which have an intention to relocate. Moreover, technical and economic predictions of urgent actions to ensure an efficient process of enterprises relocation should be developed as well as promotion domestic products on the domestic and international markets, searching for a new export opportunity. Special attention has been paid to legislation concerning the development of industrial parks and its adaptation to the process of business relocation. The importance of involving regional employment centers in job search assistance and training personnel for relocated enterprises has been underlined.It has been concluded that the launch of a new business in the territories where there are no active hostilities will allow, firstly, to broaden the tax base for local authorities, secondly, to create a new jobs, to restrain the outflow of workforce abroad, and contribute to improving their solvency.
relocation, national production, entrepreneurship, business relocation, Russia-Ukraine War
The article examines the state of foreign trade security of Ukraine in 2013-2020. Based on the positive dynamics of the integrated indicator of foreign trade security, the compliance of foreign trade indicators with economic security criteria in most regions of Ukraine is verified. The results of calculating the integrated indicator sensitivity to changes in foreign trade security indicators identify the most common threats to foreign trade at the regional level in 2020. Based on a cluster analysis of Ukraine’s regions for foreign trade security in 2020, common features and problems of foreign trade are outlined. The pre-war state of foreign trade of the regions of each group and the peculiarities of export-import operations under martial law are analyzed. Based on the analysis of foreign trade indicators in 2022 and taking into account the factors of foreign trade security, the key threats to each group of regions during the war are identified. Russia’s aggression is the main external threat, which has a systemic nature and determines the state of the economic security of the regions. As a result of the threat of war, domestic threats are growing, caused by the inefficient structure of the regional economy and raw material exports. For the regions where the export of raw materials predominates, the main threats include the imbalance of foreign trade due to a sharp decline in exports as the result of logistics disruption, complete or partial loss of foreign markets, and increasing import dependence. In wartime, the decline in exports of high-tech goods or science-intensive services due to hostilities, destruction of enterprises and telecommunications, and loss of intellectual potential are the greatest threats to foreign trade security of regions with a significant share of high-tech products and science-intensive services.
foreign trade security, foreign trade, region, threats, cluster analysis, grouping of regions, martial law
The article reveals the essence of tax risks of the enterprise; the types of losses they will receive in the event of certain tax risks are described. It is noted that the tax risks of the enterprise should be analyzed in terms of economic, legal and social plane. The external and internal factors of tax risk of business entities are identified; the directions of influence of tax risks on financial and economic security of the enterprise are characterized. The constituent elements of the mechanism of neutralization of tax risks of the enterprise are given. An algorithm for the implementation of the process of tax risk management in domestic enterprises and approaches to the analysis of the probability of their occurrence are presented. The essence of tax planning at the enterprise is described. The expediency of conducting a high-quality audit of the payment of taxes and fees by the company, which will reduce tax risks, increase payment discipline and form the optimal tax burden on the company, is proved. The necessity of forming an effective system of tax compliance is substantiated. It is noted that such a system will prevent conflicts between enterprises and the state in the field of taxation and will help to avoid significant losses on both sides.
The development of small businesses is an important area of creating a competitive market environment in Ukraine. Today it is quite obvious that the success of market transformations will largely depend on how the small business potential as the dynamic and mobile sector of the economy is realized, the existence of a well-balanced system of state-legal measures, and their internal monitoring. After conducting internal monitoring of small businesses, the following main conclusions were made: first, the companies have qualified proactive staff willing to work and able to perform tasks despite the complexity of work, high labor intensity and workload, and second, respondents believe that without a proper level of cooperation between themselves, between managers and subordinates, and with public authorities, it is impossible to achieve high results. This monitoring made it possible to characterize the internal state of activity of enterprises provided by their employees and is the first step towards the implementation of the concept of “change management” in the process of entrepreneurship development. On the one hand, it is a collection of information, on the other hand - a tool of “feedback” between management and subordinates and with public authorities at all levels, which enables the monitoring of the dynamics of the indicators across specific issues. An integrated approach to the process of enterprise development based on the concept of “change management” will increase the effectiveness of positive change in enterprises, remove most of them from the shadow sector, create more jobs, as well as increase the overall well-being of citizens and the state as a whole by increasing its GDP. The article thoroughly describes and demonstrates the factors restraining small business development during 2021-2022.
change management, small enterprise, internal monitoring, external environment, competitiveness
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UDC 352.338.486:379.8; JEL L83, J13