Abstract
On the example of two directions - production of goods and services and welfare, it is developed a methodology for analyzing the interrelationship between various directions of regional development. The novelty of the results is determined by the fact that the direction indicators are constructed using a common basis formed using the characteristics of regional differentiation obtained from theoretically based models. The index for each direction, constructed in the basis, is maximally correlated with the index formed for the corresponding group of indicators. It is shown that for the considered two directions, the basis ensures higher consistency of the indices and ranks of the regions than the first principal components constructed for each group of the indicators separately. The advantage of the approach is that the indices for different directions based on the basis allow a general interpretation in terms of the differentiation characteristics and allow one to assess the change in the level of socio-economic development of the region when these characteristics change. The presented results confirm the significance of the influence of technical efficiency on the indices of regional development and its significance in the indicator composition for the direction of welfare.
Highlights
A theoretically grounded approach to the analysis of the interrelationship between various directions of regional development is the construction of indices on the basis of a component analysis of the indicators characterizing these areas
The technical efficiency estimates for the regions that are part of a homogeneous group are considered as indicators of the effectiveness of regional management, since the difference in the level of technical efficiency of the regions in a homogeneous group is due to the fact that the regions use in a varying degrees affordable, comparable due to homogeneity development opportunities
For the directions of regional development considered in this work, the indices in the basis characteristics ensure a higher consistency of the indices and ranks of the regions than the first principal components of the indicator sets
Summary
A theoretically grounded approach to the analysis of the interrelationship between various directions of regional development is the construction of indices on the basis of a component analysis of the indicators characterizing these areas. A natural way to solve this problem is the construction index of each direction using principal components analysis and comparison the regions by these calculated indices This method is used for comparison analysis. There are presented the results confirming the significance in the composition of the basis of the technical efficiency influence on individual socio-economic indicators and its significance as part of the index in the direction of "welfare”. This can help expand the scope of application of technical efficiency as one of the characteristics of multifactorial productivity, but as a characteristic of regional differentiation
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