Application of the methodology for determining the “growth poles” of the region’s industrial economy in the system of public administration

Abstract

The article deals with the topical issue of applying the theory of “growth poles” to the economic development of Ukraine. A variety of theoretical definitions of the “growth pole” concept existing in the world economic and scientific thought has been studied. The ways and issues of practical application of the theory of “growth poles” for the Ukrainian economy have been identified. It has been proved that the formation of “growth poles” in industry is the determination of priority locomotive branches of the region’s industrial economy. The possible mechanisms of their localization in the form of growth areas have been substantiated. The methodology for determining “growth areas” of the industrial region has been developed and applied to the industry of the Carpathian economic region. In order to identify regional economic growth areas, Ivano-Frankivsk, Lviv, Chernivtsi, and Zakarpattia regions have been analyzed, evaluated, and classified for the period 2011–2016: by the relative share of the industry in the total output produced in the region of interest; by the relative share of unprofitable businesses in the industry; by the level of profitability of industries (goods) and by the monetary value of the profit earned by industries. The procedure for classifying the branches has been put forward for the purpose of identifying economic growth areas by totality of leading businesses and by fiscal performance (size of tax payments) of industries. It has been proved that the advanced development of the region’s industrial economy is possible as a result of intensifying the areas of the growth poles, with the priority innovative and investment projects for the development of the locomotive regional branches serving as the principal growth areas of the regional economy.