Key trends and development peculiarities of the economy of Ukrainian regions

Author:

Ishchuk Svitlana O.1ORCID

Affiliation:

1. Dolishniy Institute of Regional Research of NAS of Ukraine

Abstract

The scale of the national economy and, at the same time, its strong heterogeneity in the regional context, which is deepening under the influence of threatening destructive factors (military aggression by the russian federation), determine the relevance of scientific research in this area. The article aims to assess economic specialization of Ukrainian regions and the trends in their further development in the context of modern challenges. The study of the long trends in indicators of socio-economic development of Ukraine shows the instability of the national economy and the high degree of external factor influence on it, including geopolitical factors. The main trends in the change of the Gross Regional Product physical volume index in Ukraine during 2012-2020 in regional breakdown are defined. The regions are ranked according to their contribution to the Gross Domestic Product, and its dynamics are analyzed. The article offers the author's typology of regions proceeding from their economic specialization calculated based on indicators of a share of key types of economic activity in Gross Added Value. Following the methodology, all regions of Ukraine are divided into five groups according to their economy specialization type: industrial (Dnipropetrovska, Donetska, Zaporizka, Ivano-Frankivska, Kyivska, Lvivska, Poltavska, Rivnenska, Harkivska oblasts); agricultural (Vinnytska, Zhytomyrska, Kirovohradska, Ternopilska, Hersonska, Hmelnytska, Chernivetska, and Chernihivska oblasts); commercial (Volynska oblast); diversified (Zakarpatska and Odeska oblast); changing (Luhanska, Mykolayivska, Sumska, and Cherkaska oblasts). The article recommends assessing the functioning effectiveness of the economy of Ukrainian regions based on financial (expressed by the financial result before tax) and social (expressed by the average wage) indicators. The contribution (amount of taxes and fees) of each of the regions to the State budget of Ukraine is determined. The article argues that primarily industrial regions constitute the financial basis of the national economy and its innovation potential.

Publisher

State Institution - Institute of regional research named after M.I. Dolishniy of NAS of Ukraine

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