Estimation of Economic Security Level of Regions in Ukraine

Abstract

The research paper includes the review of evaluation approaches targeted at estimation of economic security level of regions in Ukraine. Authors present the results of the analysis of economic security conducted using two methods. The first applied method enabled to identify the most significant factors of economic security. The second one allowed to rank regions of Ukraine in accordance to the level of economic security. The achieved results were used as a basis to work out the ways to improve Ukraine's regional policy. Critical state of Ukraine's economy throughout the last years resulted in the increasing role of regions in resolving social and economic issues including such important ones as guaranteeing economic security. Nowadays a new economic background for creation more advanced approaches to economic security management on regional level. The estimation of the achieved level of economic security takes a major place among the managerial functions. However, existing method of evaluation based on aggregated indexes and integral indicators calculation allows neither to make a full enough assumption on economic security of a region nor conduct administration of these processes. The official methods of state economic security estimation consists of diverse indicators and is not practically used due to its complexity. These methods point out the following spheres: social, demographic and food security. Adapting the system of indicators used to estimate the level of state economic security to regional level, we suggest that the level and quality of life index should be considered as major one that characterizes the economic security level of a region. According to the encyclopedia of sociology (2) the term 'quality of life' unites such elements as the quality of material and cultural needs satisfaction, financing the personal development, as well as labour market development, level of income, consumption quality, quality of food and clothing, accommodation comfort, education, health care and service quality, the state of environment, structure of leisure time activities and the extent of social needs satisfaction, etc.. Aligning the quality and level of life indexes towards state's average can be the ground for regional economic security management and may allow to adjust regional social and economic policy aimed at territorial development. The integral indicator of level and quality of life may consider all aspects of regional development that directly influence the indicators of economic security on the regional level. Consequently, we consider the elaboration of methods for estimation of regional economic security level to be a highly important issue. Such economists as S. Ayvozyan, V. Bogomolov, Z. Varnalia, A. Bozzhenikov, S. Glaz'yev, O. Granberg, E. Libanova, G. Kozachenko, S. Kazantsev, V. Sen'chagov, O. Snipko and others contributed in resolving the outlined question. In spite of this, the search of efficient method for regional economic security level estimation remains to be the subject of precise scientific study. The carried out research was targeted at establishing a scientific rationale for usage of the mentioned methods used to assess the regional economic security level. The practical side of the study is focused on the importance of factor analysis usage. Method In our view, the level and quality of life should be presented as a multitude of events that occur in social and economic system of a region that can be estimated with particular index. Considering the question in such a way it is essentially important to identify the pull points to scheme the management process of social and economic development. The pull points are the spheres of social and economic process that impose significant impact on formation of economic security in a region. It can be visualized with diagram of a surface, peaks of