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.

Highlights

  • 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 and by the monetary value of the profit earned by industries

  • In determining the prospects and objectives of the regional development as part of the national economy, the issue of uneven production growth in the economy takes an important place due to the existing dynamic advanced industries, which serve as the locomotive of the entire economic development, i.e., represent the “growth poles” that spread the effect of production growth throughout the region or country

  • This is due to the initial different adaptation to the new conditions for the regional performance characterized by a historically different structure of economic performance, poorly performing economic ties, and displacement of interregional relations by foreign economic relations; significant weakening of the regulatory role of the state associated with the attempt to delegate a considerable part of authoritative powers to the regional level, and is manifested in the reduction of state investments in regional development, cancellation of a fair share of regional economic and social consideration; actual uneven regional development and progressive lag of a large group of regions

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Summary

INTRODUCTION

The phenomenon of spatial polarization associated with the transition to market-based economic relations, modernization of the national economy allows to identify the competitive strengths and weaknesses of economic space entities This is due to the initial different adaptation to the new conditions for the regional performance characterized by a historically different structure of economic performance, poorly performing economic ties, and displacement of interregional relations by foreign economic relations; significant weakening of the regulatory role of the state associated with the attempt to delegate a considerable part of authoritative powers to the regional level, and is manifested in the reduction of state investments in regional development, cancellation of a fair share of regional economic and social consideration; actual uneven regional development and progressive lag of a large group of regions. Notwithstanding the ac- assumes that there is a wide choice cumulated best practices, the application of the of industries on the basis of which some spatial theory requires the improvement and discovery production entity or other will be developed as a of new dimensions of theoretical and method- “growth center” and a form of future growth poles. This concept is actively encouraged by Western specialists for the post-Soviet countries

METHODOLOGY
Industries with the highest growth rates
By the monetary value
Findings
CONCLUSION
Full Text
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