Purpose. The purpose of the study is to substantiate the dual nature of the interaction between the restoration of infrastructure and the local economic development of the de-occupied territories on the basis of assessing their direct and inverse impacts and determining the nature of such interaction within the concept of a closed chain of coherence. Methodology. The methodological basis of the study is a combination of conceptual, factorial, indicative and matrix approaches to assessing the interaction between infrastructure restoration and local economic development. The methods of theoretical generalization, logical modeling, comparative and causal analysis are used to develop the concept of the dual nature of interaction and substantiation of a closed chain of coherence. The indicative approach is used to form a system of calculated indicators, matrix method \u2012 for estimating the intensity of coherent relationships and typologizing coherence channels. The study was implemented in the form of a three-stage assessment using the data of the Ivankiv territorial community for 2022-2024; In the absence of the necessary statistical information, relevant proxy indicators are applied. Results. The study substantiates the need for a consistent assessment of the impact of infrastructure restoration on local economic development and local economic development on infrastructure restoration, followed by a comprehensive interpretation of the results obtained from the standpoint of the concept of a closed chain of coherence and the dual nature of interaction. It has been established that in the Ivankiv territorial community this interaction has an asymmetric character: at the initial transformation iterations, the decisive role infrastructural recovery, while further intensification of small business, the return of the population and investment activities formed the prerequisites for the transition of local economic development to the role of a source of resources for subsequent reconstruction cycles. This confirms the dual nature of the impact, which is manifested in the consistent change of functional roles of infrastructure restoration and local economic development. Originality. The scientific novelty of the study lies in substantiating the concept of the dual nature of interaction between the restoration of infrastructure and the local economic development of de-occupied territorial communities. A three-stage approach to assessment has been developed and empirically tested, which provides a consistent transition from the analysis of individual areas of influence to the determination of the nature of their interaction as a manifestation of the dual nature of a single process of territorial development. Practical value. The practical significance of the research results lies in the possibility of using the proposed approach to assess the interaction between infrastructure restoration and local economic development during strategic planning of the post-war recovery of territorial communities. The results obtained can be used by local governments to determine investment priorities, identify key channels of coherence, and assess the ability of the local economy to support further processes of restoration and formation of prerequisites for self-sustaining territorial development.
infrastructure restoration, local economic development, coherence, dual nature, impact assessment, de-occupied communities, restoration of territories
Objective. To assess the tax capacity of the territorial communities of Lviv Oblast under martial law, to measure the scale of the region’s fiscal polarization, to verify empirically the link between the local tax base and the investment activity of communities, and to justify a matrix model of the tax optimization strategy for community development. Methodology. The study draws on official data of the Finance Department of Lviv Oblast State Administration and open-data portals for 2025-2026 for all 73 communities of the oblast. Structural, correlation-regression and analysis-of-variance methods are applied, together with inequality measurement tools (the Lorenz curve, the Gini coefficient, the decile ratio), positioning of communities against the equalization thresholds (0.9 and 1.1) and matrix positioning in the coordinates of tax base versus investment activity. Results. Deep fiscal polarization is revealed: the gap between the maximum (Sokilnyky, 2.86) and minimum (Strilky, 0.16) index values reaches 17.9 times, the Gini coefficient equals 0.296 and the decile ratio is 6.9 : 1, while 55 communities (75.3 %) receive the base grant. The elasticity model ln K = 2.839 + 0.848·ln I (R? = 0.428; p < 0.001) shows that a 10 % rise in the tax capacity index is associated with an 8.5 % rise in the share of capital expenditure, and the investment activity of donor communities exceeds that of critically subsidized ones by 3.8 times. Originality. For the first time the tax capacity of all 73 communities of the oblast is assessed on wartime data with an econometric verification of the taxation-investment link; a strategy matrix of tax optimization for community development and a scheme-model of its implementation are developed. Practical value. The results can be used to differentiate the policy of strengthening the tax base of communities and to improve the equalization mechanism.
tax capacity, tax capacity index, territorial community, local taxes and fees, horizontal equalization, fiscal polarization, investment activity, strategy matrix, Lviv Oblast
Purpose. The purpose of the article is to identify and econometrically evaluate the determinants of structural transformation in the industrial complex of the Carpathian region in wartime. Methodology. The study is based on the estimation of panel regression models, where the dependent variable is a vector of shares of individual industries in total industrial output, and the independent variables include indicators of foreign trade, capital investments, FDI, innovation activity, the labor market, and domestic consumption. Findings. Foreign trade factors were established as key drivers of growth in the shares of transport equipment manufacturing and electrical equipment manufacturing, confirming the significant integration of regional enterprises into European value chains. For electricity, gas, and steam supply, a substantial stimulating effect of high-tech imports was revealed, meeting the critical need of the sector for modern equipment to modernize power generating capacity and restore infrastructure. The statistical insignificance of investments and innovations for most medium- and high-tech industries (except the food industry) was identified, indicating that enterprises operate under contract assembly conditions relying on imported technologies amidst a capital deficit. The validity of the efficiency wage theory was confirmed: an increase in labor costs stimulates output in the food industry, furniture manufacturing, and equipment repair due to enhanced labor productivity. The impact of domestic consumption aligns with Engel’s law, highlighting the export orientation of most industrial branches in the Carpathian region. Originality. The study deepens the theoretical and methodological framework and provides empirical justification for the determinants of regional industrial structural transformation. It proves that analyzing the shares of individual industries is more informative than using an aggregated index, as it reveals not only the scale of inter-industry redistribution but also the qualitative direction of development for specific industrial sectors. Practical value. The strategic priorities for industrial policy were identified: transitioning from tolling operations to in-house R&D and dual-use technologies; developing industrial parks; implementing war risk insurance; adopting an efficiency wage model; and engaging local enterprises in reconstruction programs.
Purpose. This study develops and substantiates an organizational and economic mechanism for public investment aimed at ensuring balanced regional development in Ukraine, taking into account the institutional, financial, and administrative constraints affecting investment management at the regional and local levels, as well as the influence of wartime risks and post-war recovery needs on regional investment policy. Methodology. The study employs a combination of general scientific and specific methods. Theoretical generalization and systematization are used to reveal the conceptual foundations of public investment on the basis of domestic and foreign scientific literature. A systemic and structural-logical approach underpins the construction of the mechanism’s structural model, comprising organizational and economic components. Comparative analysis is applied to distinguish the established system of public investment management at the central level of governance from the underdeveloped system at the regional and local levels, and to identify the changes required to extend the mechanism to the subnational level. Institutional-legal analysis is used to examine the regulatory framework governing public investment in Ukraine, while the abstract-logical method underlies the formulation of conclusions and directions for further research. Findings. The results demonstrate that the effectiveness of public investment management is shaped by a complex interaction of institutional, financial, and administrative factors. In particular, the study highlights that, while a coherent institutional and legal framework for public investment has been established at the central level of governance, no comparable system currently exists at the regional and local levels, which limits the capacity of territories to implement strategic projects, develop infrastructure, and attract private capital. Key constraints identified include organizational shortcomings, limited financial resources, insufficient procedural transparency, and a shortage of qualified personnel. Based on the integration of institutional and structural analysis, a two-block model for the organizational and economic mechanism of public investment development — comprising an organizational block (management, institutional capacity, strategic planning, digitalization) and an economic block (diversified funding sources, public-private partnerships, financial incentives) — is proposed. It is shown that public investment projects contribute to infrastructure development, job creation, improved quality of life, and reduced migration, while also stimulating innovation, economic modernization, and a favorable regional investment climate. Originality. The originality of the study lies in the development of an integrated structural model of the organizational and economic mechanism of public investment, adapted to the conditions of wartime and post-war recovery, that for the first time combines organizational and economic components specifically at the subnational level, where a coherent management system has not yet been established. Practical Value. The proposed mechanism can be used by central and regional/local authorities to build the institutional and legal architecture for public investment management, establish regional and local investment councils, develop public-private partnership mechanisms, create investment passports and databases of ready-to-implement projects, and design monitoring and evaluation systems (KPIs) for public investment project effectiveness in the context of economic transformation and post-war recovery.
public investment, regional development, balanced development, investment policy, public investment management, regional economy, organizational and economic mechanism, public-private partnership, institutional capacity, regional policy, post-war recovery
Purpose. To analyze the problems existing in coal microregions and to investigate and substantiate the importance of the components of the marketing and logistics dimension in projects implemented within the just transition process. Methodology. The methodological framework of the study is based on systemic, place-based, and problem-oriented approaches. Structural and spatial analysis methods were applied to identify the components of the logistics sector and the spatial characteristics of its facilities; comparative analysis was used to assess the functional orientation of logistics projects; and synthesis was employed to develop an integrated approach to the logistics component of territorial marketing. The information base comprises research on regional development, transport logistics, and just transition, as well as the Action Plan for the Just Transition of the Coal Microregion of Lviv Region for the period up to 2030. Results. It was established that the contraction of coal mining and the monofunctional nature of the economy lead to job losses, a decline in economic potential, and an increased risk of socioeconomic depression in the coal microregion. The importance of the logistics component as one of the avenues for diversifying its socioeconomic development is substantiated. The spatial (territorial), commercial, economic and infrastructural, social, security, and environmental components of the logistics sector are systematised, and the need for their integrated consideration in territorial marketing is identified. The spatial and functional features of transport and logistics centers, an agro-industrial hub, industrial parks, cross-border infrastructure, and railway infrastructure in the coal microregion of Lviv Region are determined. Originality. An integrated approach to shaping the marketing and logistics dimension of the just transition of a coal microregion is further developed through the integration of spatial, commercial, economic and infrastructural, social, security, and environmental components. Practical value. The research results may be used by local self-government bodies and regional authorities in implementing the Action Plan for the Just Transition of the Coal Microregion of Lviv Region, developing territorial community development strategies and comprehensive spatial development plans, and planning logistics centers, industrial parks, and transport infrastructure.
coal microregion, just transition, transport logistics, Action Plan projects, territorial marketing, integrated approach, spatial component, commercial component, economic and infrastructural component, social component, security component, environmental component
Purpose. The purpose of the study is to assess the impact of intersectoral integration and digitalization on the economic performance of service economy sectors in the European Union and to identify intersectoral differences in the combination of integration, digital, and performance characteristics. Methodology. The methodological framework is based on the theory of intersectoral linkages, concepts of digital transformation, and systemic and ecosystem approaches. Statistical, structural, and comparative analyses were applied. The empirical database was compiled using Eurostat and OECD data for NACE Rev. 2 sectors H, I, J, M, and N across EU countries. Results. The study reveals substantial sectoral differentiation in development dynamics, the nature of intersectoral linkages, the level of digitalization, and economic performance. The highest labour productivity was recorded in the information and communication sector, while professional, scientific and technical activities generated the largest volume of value added; the lowest labour productivity was observed in accommodation and food service activities. Transport and storage were found to exhibit pronounced two-way linkages, whereas accommodation and food services are characterized predominantly by backward linkages. Information and communication, professional, and administrative and support service activities act as important suppliers of resources and services to other economic activities. It is demonstrated that technological digitalization is more strongly associated with productivity than the digitalization of sales channels, while the performance effects of intersectoral integration depend not only on the intensity of linkages but also on their functional orientation. Scientific novelty. The scientific novelty lies in the integrated comparison of the direction of intersectoral linkages, the level of technological and market digitalization, and the performance indicators of EU service economy sectors. Practical value. The practical value of the results lies in their potential use for identifying sectors with insufficient digital maturity and a limited capacity to translate intersectoral linkages into productivity and value-added growth.
intersectoral integration, digitalization, service economy, European Union, economic performance, labor productivity, intersectoral linkages, cloud technologies, e-sales, value added
Objective. To substantiate the conceptual foundations of a new regionalism for Ukraine in the context of war, postwar reconstruction, and European integration, and to develop an institutional and financial model for the transition from a predominantly redistributive budget equalization policy to a territory-oriented development policy compatible with the principles of EU cohesion policy. Methodology. Systemic, institutional, and comparative approaches were applied, along with the case study method to analyze the experiences of Poland, Romania, and Croatia. The information base consists of EU and Ukrainian legislation, materials from the European Commission and RDNA5, documents from the Ukraine Facility, and scholarly works on place-based development, Cohesion Policy, and smart specialization. Results. The paper justifies the need to transition from a policy of resource allocation among administrative units to the development of functional territories, taking into account their potential, security risks, demographic changes, and institutional capacity. A model of the “5Ps of New Regionalism” is proposed: space, potential, partnership, powers, and cohesion policy. The directions for its implementation are identified: the formation of a national territorial typology; the introduction of multi-year regional programs; the professionalization of regional development agencies; the combination of grants, loans, and guarantees; the development of smart specialization; and the transition from evaluating the absorption of funds to a system of economic, socio-demographic, and institutional outcomes. Originality. A place-based approach has been developed by adapting it to Ukraine’s security-asymmetric economy, in which territorial disparities are determined not only by productivity and the quality of institutions but also by risks of asset destruction, forced migration, and the transformation of logistical links. The principle of asymmetric decentralization is substantiated, according to which the scope of delegated functions depends on the proven institutional capacity of regional structures. Practical Value. The proposed approach can be used to formulate Ukraine’s State Strategy for Regional Development for 2028-2034, to develop territorially differentiated recovery programs, and to prepare Ukraine’s institutional system for the implementation of the requirements of Chapter 22 of the EU acquis.
regional policy, new regionalism, EU cohesion policy, place-based development, multilevel governance, smart specialization, Ukraine’s reconstruction, European integration
Objective. To identify current trends in the development of the European Union’s regional economy, to systematize the institutional and practical foundations for the implementation of EU regional policy, and to substantiate the possibilities for adapting European approaches to strategic planning for regional and local development in Ukraine in the context of European integration, reconstruction and structural transformation of the economy. Methodology. The methodological basis of the study comprises a place-based approach to regional development, the tenets of institutional theory and the principles of strategic planning. Systematic, comparative and retrospective analysis were applied, along with a critical analysis of EU and Ukrainian regulatory and policy documents, the synthesis method for generalizing trends in regional development, and graphical methods for visualizing its parameters. Particular attention is paid to the institutional mechanisms of cohesion policy, strategic investment, innovation policy, the development of rural areas and the transformation of approaches to regional support in 2025–2026. Results. It has been established that the EU’s regional economy is developing against a backdrop of intensifying geopolitical, technological, demographic and structural challenges, which is driving the transformation of cohesion policy instruments and mechanisms for supporting territories. The key trends in the EU’s regional development have been systematized: the orientation of strategic planning towards European values and territorial cohesion; the use of strategic investments to stimulate economic growth and improve quality of life; the adaptation of budgetary and program mechanisms to external and internal changes; the strengthening of the role of innovation, digitalization and the green transition; and the development of regional programs and interregional integration. It has been established that the effectiveness of the European model is ensured by multi-annual programming, the alignment of strategic priorities, a clear division of powers, uniform standards, transparency and the ability to adjust programs in line with the results achieved. Originality. The paper elaborates on the transformation of the EU’s regional economy under the influence of the interplay between geopolitical, innovation- and technology-related, green and digital factors. Current trends in the EU’s regional development have been systematized, and the institutional possibilities for their adaptation in Ukraine have been identified, taking into account the objectives of European integration, post-war reconstruction, decentralization and the need to strengthen the capacity of regional and local institutions.
regional economy, European Union, trends, strategic planning, state regional policy
Purpose. The purpose of the article is to identify the institutional and functional features of entrepreneurship governance in Germany, examine the distribution of functions, powers, and responsibilities among key institutions, and determine elements of the German model relevant to improving entrepreneurship governance in Ukraine. Methodology. The study applies a comparative institutional approach based on legislative acts, government and programme documents, and materials of public institutions. Comparative, structural and functional analysis, systematization, generalization, and graphical visualization are used. Findings. The German model combines federal policy coordination with decentralized implementation by the Lander and local authorities. Its key feature is the separation of policy formulation from administrative implementation, regulation, control, and financial support. Federal ministries formulate policy, while specialized institutions perform administrative, regulatory, supervisory, and financial functions. BAFA implements programmes, the Federal Cartel Office enforces competition law, the Federal Network Agency regulates network industries, and KfW provides financial support. Chambers of industry and commerce perform delegated public functions and represent business interests. The Ukrainian model is more centralized, with a less pronounced separation of functions and financial support distributed among several institutions. Originality. The scientific novelty lies in the comparative systematization of the institutional models of entrepreneurship governance in Germany and Ukraine according to the functional distribution of policy formulation, administrative implementation, regulation, control, and financial support, which makes it possible to identify differences in the degree of institutional specialization and functional separation. Practical value. The results may improve entrepreneurship governance in Ukraine by clarifying institutional responsibilities, strengthening specialization and coordination, and improving interaction between public authorities and business.
entrepreneurship governance, public institutions, functional specialization, institutional model, multilevel governance, small and medium-sized enterprises, Germany, Ukraine
The purpose of the article is to conduct a comprehensive comparative analysis of the regional innovation systems of Ukraine and the EU based on the adaptation of the European Regional Innovation Scoreboard methodology, taking into account the specifics of national official statistics to identify key gaps, competitive advantages, and vulnerabilities of Ukrainian regions in the context of European integration. The methodology is based on the European Regional Innovation Scoreboard (EU-RIS) and European Innovation Scoreboard (EIS) approaches, adapted to Ukraine’s conditions and official statistics requirements. The spatial framework is aligned with NUTS-UA standards. To overcome wartime statistical limitations, proxy indicators, bibliometric analysis of Scopus databases, and a combined method for allocating patent and licensing activity (UANIPIO, EUIPO) by region were applied. The results reveal a deep structural gap between the regional innovation ecosystems of Ukraine and the EU across virtually all parameters. In particular, the study identifies the dominance of inertial budget-centrism, the persistence of a «closed innovation» model, and a low level of business sector activity in R&D, commercialization, and international patenting (PCT, EUIPO) against the backdrop of a high level of digitalization in certain regions. The originality of the study lies in the development of an adapted methodological toolkit for benchmarking regional innovation systems under conditions of limited official national statistics and martial law, which enabled a detailed comparison of Ukrainian Oblasts with European regions. The practical value of the results lies in their potential use by state authorities and local self-government bodies to improve public innovation policy, implement smart specialization strategies, overcome digital and technological disparities, and accelerate the integration of domestic businesses into European research spaces.
regional innovation systems, innovations, regions of Ukraine, European Union, Regional Innovation Scoreboard, European integration, innovation development, local statistics
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UDC 332.1:330.34:351.778.5(477); JEL R11, R58, H54, O18