Transformation of the economy of Ukrainian cities of regional significance: efficiency of the impact on the socio-economic developmen

Abstract

The paper proposes a methodological approach to evaluating the impact of the transformation taking place in the economies of cities of regional significance (CRSs) on the socio-economic development of regions (oblasts). The analysis is conducted for cities of regional significance in the western part of Ukraine. The article emphasizes the asymmetry of regional socio-economic development as a result of the concentration of business activity and capital in the CRSs, a higher level of reception of growing direct foreign investment in the economies of CRSs compared to capital investment; a strong impact of structural changes in the economies of CRS on the Gross Regional Product (GRP). The authors found that the development of most CRSs was based on industrial production. Only half of the oblasts in Western Ukraine analyzed in the study showed evidence indicating that economies of their CRSs are undergoing a transformation towards service economy (which should correspond to the post-industrial development of the country).