Market capacity of Ukrainian regions: dominants of forming and evaluation

Abstract

The paper outlines the nature of the spatial approach to the evaluation of the market capacity of Ukrainian regions, which is based on the evaluation of accessibility and capacity of regional markets and their attractiveness. The paper substantiates the fact that the evaluation of regions’ market capacity requires a complex approach that takes into account the available economic capacity of a region from the viewpoint of evaluation of demand and supply on the regional goods market. The availability of the relationship between the volume of market capacity and the number of economic entities is empirically verified. The declining level of spatial inequality by the market capacity index is revealed. The fact that empirical models of the evaluation of the unequal distribution of economic activity represented in the research of foreign scientists confirm that the most densely populated regions and regions with high employment density have better consumer opportunities is emphasized. Based on regional data, the paper proves that density of population and employment density that characterize the consumer parameters of regional markets and testify to their size from the viewpoint of demand and production density that characterizes the degree of economic activity concentration in regions and shows the size of the regional market from the viewpoint of supply have an essential impact on forming of regions’ market capacity. Retail trade is emphasized as an important component of market capacity. Modern trends of trade development in Ukrainian regions that testify to substantial interregional differences regarding the scale (size) of markets and competitiveness level are characterized. The trends that characterize the dynamics of retail and wholesale trade, structural peculiarities, and specifics of spatial distribution at the territory of trade networks regions, available differentiation in the level of accessibility to trade services are detected. The conclusions on the opportunities to use the results of the evaluation of market capacity in the regions in regional planning are made.