СОЦІАЛЬНО-ЕКОНОМІЧНА КОНВЕРГЕНЦІЯ РЕГІОНІВ УКРАЇНИ

Abstract

The paper discovers problems of forming an effective regional policy aimed to converge regional socioeconomic development. Convergence of socio-economic development of Ukrainian regions has been evaluated. The authors described the essence and theoretical background of convergence assessment. It was provided the analysis of conditional convergence in neoclassical model. The authors built the model of differentiation processes of socio-economic development of Ukrainian regions. In addition the distribution of definition “disparities of regional development” is analyzed in Ukrainian scientific circles, stressing "disparity" and "differentiation”. The authors developed production Cobb-Douglas function for Ukrainian economics. In its basis Solow-Swann model has been evaluated for Ukrainian regions and beta convergence is analyzed. It has been proved that beta convergence occurs when the rates of growth are higher with lower levels of socio-economic development of regions. The results can be proved by other types of convergence. Some regions, including Kyiv and certain regions in the western part of the country, have a high level of development, while other regions, particularly those in the eastern and southern parts, remain less developed. Despite regional differences, there is a trend towards reducing the disparities between regions. Some less developed regions demonstrate a faster growth rate compared to already developed regions, indicating a process of social-economic convergence. Various factors influence the social-economic convergence of regions. Among them are investments, infrastructure development, access to education and healthcare, privatization of enterprises, support for small and medium-sized businesses, regional policies, and others. The concept of "catchup" reflects a situation where less developed regions demonstrate exceptionally high growth rates and catch up with more developed regions. This can occur through accelerated innovation, adoption of new technologies, or other stimuli. Regional disparities, such as uneven access to resources, unutilized economic potential, or inequality in living conditions, can hinder the process of socio-economic convergence.