Regional Development Potential Research Articles

Фіскальна безпека і децентралізація в умовах глобальних викликів і загроз

Trends in global financialization, as well as global shocks related to the COVID-19 pandemic, climate changes, intensification of the interstate economic and political competition for limited natural, energy, water, food and skilled human resources, including the global economic recession, political and financial instability negatively affect the state of the economy and public finances of Ukraine. Further strengthening country’s defense capabilities, as well as solving urgent problems in the areas of health, education and science, social and pension provision, and overcoming mass poverty are impossible without scientific substantiation, institutional support, alongside with a broad political, social and popular support for strategic priorities. restoration of economic growth, balancing public finances. Protecting fiscal security at the regional level aims to increase the resilience of the national economy. The authors of the article emphasize that the anti-crisis orientation of territorial redistribution of funds should take into account the requirements of the most rational allocation of productive forces, business promotion, resolving contradictions that arise in balancing budget revenues and constitutional social obligations. The processes of the decentralization of budgetary and tax relations should be accompanied by strengthening their social orientation. The priority of vital national interests is the ability of the state to ensure sustainable development of territories, economic entities, as well as compliance with modern standards of welfare. Improving change management due to the spread of the COVID-19 coronavirus disease requires strengthening the resistance to the unpredictable negative risks of unbalancing most areas of human activity in all aspects, from households to value chains of multinational companies. The formation of stable characteristics of the financial potential of regional development should take place along with the growth of fiscal activity of local governments.

Regional Innovative Development in the Context of Current Trends of Neo-Industrialisation

Russian economy is characterised by raw materials dependence, the impossibility of using the latest achievements of the sixth technological mode, rapid digital development, internationalisation of scientific and technological progress, the impact of technological shifts on structural transformations. These aspects lead to the implementation of an innovative scenario for the development of regions in the context of neo-industrial challenges, which is necessary for identifying and consolidating the most effective tools for innovating the modern Russian economy. This problem primarily affects regional economic systems with a set of innovative economic entities. To solve the problem, we analysed and generalised the scientific-theoretical, methodological framework, and practical aspects of regional innovative development, taking into account current trends and key parameters of neo-industrialisation. Considering neo-industrialisation in regional economic systems, the innovative development path increasingly depends on such critical parameters as human capital, intersectoral interaction, and technological modernisation processes. The paper presents scientific and theoretical substantiation of the possibilities of regional innovative development in the context of current trends of neo-industrialisation. Research methodology and tools include systemic, categorical, structural, and functional analysis, conceptual modelling. We identified and described objective factors, trends, and problems of ensuring the long-term regional innovative development. Further, we defined and classified the current trends of innovative development of the regional economy, as well as substantiated the key parameters of neo-industrialisation. Then, we created a model of regional innovative development. To explain the discrepancies between the actual and the desired level of the development of neo-industrialisation parameters, we presented an algorithm that allows identifying bottlenecks, forming a roadmap, and implementing a mechanism for strengthening the potential of regional innovative development. Additionally, we specified key aspects of the innovative development path of regions, considering the current state of the real sector. The obtained theoretical results can be used for forecasting the most important economic challenges and identifying strategic factors for the regional innovative development in the context of neo-industrialisation.

Spatial and temporal characteristics of atmospheric water vapour content and its relationship with precipitation conversion in China during 1980–2016

AbstractAtmospheric precipitable water (PW) is the basis of precipitation (P) formation, and the spatial difference between them is one of the focus of water resources research. Based on daily P from 552 meteorological stations and four reanalysis datasets during 1980–2016, the spatial–temporal pattern of PW and precipitation conversion rate (PWCR) in China are investigated using the whole layer atmospheric PW calculation formula, univariate linear regression, and inverse distance weighting. Results showed that ERA‐Interim reanalysis seems to match the magnitude and pattern of P over China with small regional differences. At daily scale, an increase (decrease) in P was connected with an increase (decrease) of PW in most regions, and the temporal change showed that PW was highest in summer and lowest in winter. Across China, the mean daily PW for CFSR, ERA‐Interim, JRA 55, and NCEP‐1 varied between 41.18–48.43 mm, 39.02–43.13 mm, 37.41–41.79 mm, and 43.06–48.33 mm, respectively in summer and between 11.67–13.79 mm, 10.21–11.87 mm, 9.96–11.83 mm, 11.92–13.73 mm in winter. The spatial pattern of PW showed increased moisture over the southwest, with a maximum positive trend of about 0.25 mm per day, particularly over the Tibet Plateau. Moreover, summer and autumn had the highest and lowest PWCR, respectively. During summer, PWCR for CFSR, ERA‐Interim, JRA 55 and NCEP‐1 ranged between 8.3–11.9%, 8.1–9.7%, 10.3–11.7% and 9.4–14.1%, while in autumn, 6.4–9.8%, 5.9–7.7%, 7.1–9.5%, and 8.1–12.3% were reported, respectively. Therefore, the potential of P arising from PW was great in summer. The PWCR had a declining trend from east to west and from south to north in space and the regional fluctuation was large, making the regional development potential of atmospheric water resources obvious. These results that lead to a better understanding of water vapour conversion over China will help to rationally develop and utilize atmospheric water resources.

Global trends and tourism development in peripheral areas

ABSTRACT The article reveals main tourism trends after the pandemic and analyses the potential for tourism development on the example of the city of Kemi, located in Finnish Lapland. In current conditions of unprecedented health and economic crisis caused by the COVID-19 pandemic, fast developing technology, shift in customer preferences and climate change, it is important to quickly adjust and respond to the new realities in order to ensure a sustainable development at the regional level. This is especially relevant in Lapland, where tourism is a strategically important sector of the economy. The article aims at identifying main tourism trends in post-lockdown era caused by COVID-19 pandemic and determining the potential for regional tourism development of peripheral areas on the example of the city of Kemi. Based on the conducted analysis of recent literature; analysis of statistical data; qualitative sociological study, three priority groups of actions were recommended: enhancing visibility in the market, strengthening image of the city, and developing facilities in the city. Besides the fact that achieved results are important for further research, developed priorities can lead to the development of tourism in the city, attraction of new investments, creation of new jobs and thus development of the economy.

Flagship Universities as Development Potential of Regions and Industries

This article presents the research results of flagship universities activities, which support social and economic development of the Russian Federation regions, including the creation of innovation, technological and social region development centers. The research covers the period from 2015 to 2018. The following core areas of flagship universities were analyzed: educational, research, integration with regions and high-tech industries, international activities. Essential aspects of financial and economic activity and employment policy were considered. The analysis was based on 41 quantitative and 11 qualitative indicators, among which 8 indicators were prioritized. In the analysis the following data sources were used: statistical forms 1-Monitoring, rankings agencies data, etc. The effectiveness of flagship universities was studied. Problems and positive tendencies in flagship universities development were determined and analyzed.

Marketing Approach to Environmental and Economic Assessment of National Development

The main growth factor for a developing economy is the implementation of investment projects by economic subjects pursuing the objectives of increasing productivity and labour engagement, modernisation and development, production risk mitigation and increasing investment attractiveness, all aligned with the green technology context. Green technologies are a relatively new instrument of economic development. The purpose of this paper is to assess the environmental and economic security and sustainability of regional socioeconomic systems with an emphasis on establishing the relation between the innovative and environmental components of their development. Economic security and sustainable development of regional socioeconomic systems depend on a significantly wide range of factors of a balanced approach to regional development potential and its operation.

Решение задачи управления региональной социально-экономической системой с учетом эффективного объема трудовых ресурсов

In the paper, a problem of regional socio-economic system management is solved, as exemplified by one of Russia’s regions. An optimal management algorithm is created, with an effective capacity of the workforce taken into account. The statement of the problem is implemented based on a regional economic system macro model, with an effective capacity of a labor force and a physical capital to be viewed as development factors. The underscore preliminary proposition of the model is the fact that labor force effective capacity consists of both qualitative (labor productivity of a worker) and quantitative (labor pool) properties. The product is distributed into consumption, capital widening and sustainment investments, and regional socio-educational development potential. The qualitative property of the workforce is derived from these socio-educational potential investments. Adding a workforce effective capacity factor to the model is the key feature of the management problem statement. The problem-solving algorithm comprises two stages: building an objective optimal balanced growth trajectory and building an optimal trajectory of socio-economic system motion which would propel it to the balanced growth trajectory. The time of transitional period up to reaching an objective balanced growth trajectory can be changed by varying build-up rates of a socio-educational potential. The paper is first to use a two-factor approach in building an optimal investment distribution to solve the problem of socio-economic system management with a workforce effective capacity taken into consideration. Data on demography and volume of investments in educational, production, and social fields of the Udmurt Republic served as an information base of the model. Due to identify unknown parameters of the model, the data as of 2000-2019 was used. Optimal investment rates were calculated which would enable the socio-economic system to reach a balanced growth trajectory by the year 2025. The suggested method can also be used for building a development trajectory for a given socio-economic system, as well as for handling parametrical model calculations to determine their factors.

K-Means Clustering Algorithm for Determination of Clustering of Bangkalan Regional Development Potential

Regional potential is the ability of an area that can be developed to improve the area according to its regional characteristics. This potential can cover social, economic, infrastructure, natural resources, and human resources and their work. To improve regional development, a strategic policy is needed that leads to improving the economy of a region. In this study the regional grouping of 3 agricultural, plantation, and livestock groups in Bangkalan Regency consisted of 18 sub-districts using the K-Means Clustering method, from which the data was processed preprocessing using Scaling transformations starting from the lower limit search and the upper limit, looking for the Lower Limit and Upper Limit, then grouping using K-Means Clustering. From the research, it was found that testing in the agricultural sector with 3 clusters for the initial cluster center 5,7,15 obtained final clusters according to the highest yield criteria in cluster 1 compared to clusters 2 and 3. For testing in the plantation sector with 3 clusters for the initial cluster center 4,7,16 the final clusters were obtained according to the highest yield criteria in cluster 2 compared to clusters 1, and 3 and for testing the livestock sector with 3 clusters at the initial cluster center 3,11,13 the final clusters were obtained according to the criteria it was known that more height in cluster 2 is compared to cluster 1 and 3.

Международные и внешнеэкономические связи мегаполисов и регионов России как важнейший фактор экономического развития территорий

In this paper, the authors hypothesized that the de-velopment of international and foreign economic relations during visits, receptions of foreign delega-tions, exhibitions and other international contacts held in a certain territory directly affects the devel-opment of foreign economic activity and, according-ly, is one of its most important factors of its eco-nomic development. The aim of the study is to sub-stantiate this hypothesis based on the collection, analysis and comparison of relevant economic indi-cators. An author’s forecast was made on the inten-sification of the process of further shifting the em-phasis in coordinating the foreign economic activity of the federal subjects of the Russian Federation from federal to regional levels, related to the suc-cessful implementation of the additional powers by the regions granted to them in the pandemic and the prospects in this regard for the development of fed-eralism in Russia. The authors also note the special role of foreign economic activity in the economic development of certain territories. The work is of interest from a scientific and cognitive point of view, taking into account some features of the dynamics of economic development and the implementation of international and foreign economic relations of the federal subjects of the Russian Federation and megacities, using the example of Ural Federal Dis-trict, including Sverdlovsk Oblast and the capital of Ural, Yekaterinburg, in modern conditions. The re-sults of the study can be used by federal and re-gional government bodies, local governments in the formation and implementation of territorial devel-opment strategies, scientific institutions in the terri-torial development and investment potential of cities and regions, higher education institutions in the process of studying issues of regional, national and world economy.

Analysis of the Filatov model of the construction industry in the Baikal region

In recent years, due to the slowdown in industrial development and the decline in the economic growth of the Russian Federation in trade and services, many companies from these activities in order to minimize their costs stop expanding production through new construction and at the same time freeze what they have started. In these conditions, managing the profitability of construction companies is one of the most important tasks for all levels of management: operational, tactical and strategic. Return on assets is the most important indicator of the efficiency of a commercial company, the main standard or average value in a market economy, with which individual indicators of companies are correlated to justify their competitiveness. The article suggests a way to manage the return on assets by decomposing the Filatov model (return on assets) into factors that reflect various aspects of the company’s activities. The object of the study is construction companies (construction of residential and non-residential buildings) in the Baikal region of the Russian Federation (Irkutsk region, Republic of Buryatia, Zabaikalsky Krai). The article presents the method No. 2 of integral analysis developed by Filatov E. A. The article was carried out within the framework of the scientific project of the Inc SB RAS no. XI.174.1.4 ‘Activation of the internal development potential of regions of resource specialization (on the example of the Baikal region)‘.

Analysis of the DuPont model of the construction industry in the Baikal region

In the context of globalization, the role of the investment component in the dynamics of economic development is significantly increased. The DuPont model allows you to determine which factors caused the change in profitability or to make a factor analysis of the return on equity. The object of the study is construction companies (construction of residential and non-residential buildings) in the Baikal region of the Russian Federation (Irkutsk region, Republic of Buryatia, Zabaikalsky Krai). The article describes the methods of factor analysis developed by Filatov E. A., which make it possible to make an accessible and relatively simple conclusion about changes in the financial position of the enterprise, as well as to assess the degree of influence of factors on changes in the studied indicator. The purpose of this article is to generalize and systematize the theoretical and methodological foundations of factor analysis in a form that is accessible to specialists in the field of economics and management. The article should contribute to the formation of a basis for managers and economists to develop economic thinking, understanding the essence of economic processes and phenomena occurring within the framework of economic entities, and most importantly – the development of skills for their quantitative assessment, economic interpretation and search for reserves to improve the efficiency of functioning. The article was carried out within the framework of the scientific project of the Inc SB RAS no. XI.174.1.4 ‘Activation of the internal development potential of regions of resource specialization (on the example of the Baikal region)’

PRIORITY DIRECTIONS OF ACTIVATION OF INVESTMENT ACTIVITY OF THE REGIONS OF UKRAINE

The article highlights the key aspects of the modern development of investment activity in the regions of Ukraine and identifies the actual challenges of intensifying investment activity. On the basis of statistics the peculiarities of investment activity in Ukraine are investigated; characteristics of regional development potential, distribution of capital investments by regions are given, analysis of sources of financing of investment activity is provided. In the process of analyzing motives of investment activities investors were finded market motives. Important motives were the cost of labor, the level of overcoming barriers to import. The study identified a number of objective factors that impede investment activity are particularly acute: the imperfection of instruments to unlock the internal potential of the regions, — insufficient institutional support for investment policy in the regions and on the ground (investment policy development is traditionally the prerogative of the central authorities), tools to unlock the internal potential of regions through regional strategies. The severity of the problem of activation of investment activity is complemented by equally important subjective factors (corruption, low level of infrastructure development, poor protection of property rights, lack of sufficient financial sources for investments, excessive involvement of local authorities in the activity of enterprises). As a result, it is necessary to increase the level of competitiveness of regions by optimizing and diversifying the structure of the economy, ensuring the effective specialization of regions with priority use of their own resource potential. It is necessary to achieve balanced development of territories, development of interregional cooperation, prevent deepening of socio-economic inequality by forming "growth points", activate local economic initiative and strengthen rural potential, ensure socio-economic unity and unification of regional human development. It is necessary to apply new approaches to the formation and implementation of regional development policy, the creation of a unified system of strategic planning and forecasting of the development of the state and regions, optimization of the system of territorial organization of power.

FORMATION OF THE EUROPEAN INSTITUTIONAL MODEL OF THE REGIONAL ECONOMY STRUCTURAL MODERNIZATION

Within the EU countries, an effective institutional model has been created to ensure structural regional mod-ernization of the economy, which applies not only to all hierarchical levels of government, but also to non-governmental organizations. This system makes it possible to implement the principles of sustainable development of the outermost regions, as it is quite dense and detailed. The current realities of regional development of Ukraine’s regions, their disproportion and asymmetry raise the necessity for a thorough structural adjustment, the realization of which is impossible without analyzing the best practices of the world in the implementation of eco-nomic and structural regional policies. The purpose of the article is to study the practical aspects of formation of the European institutional model of regional economy structural modernization. The article substantiates the essence of the concept of "structural modernization of the regional economy". The historical process of forming the institutional model of the regional economy structural modernization in Europe is revealed. The principles of building the European model of structural modernization are revealed, namely: leadership and horizontal coordination, vertical coordination, stakeholder involvement, evaluation and review, definition of indicators and monitoring. The main institutions contributing to the structural modernization of European regions have been identified. The integral coefficients of structural shifts in the regions of Ukraine in 2017 were calculated and the regions that underwent the largest structural changes were identified. The main causes of structural imbalances in the regional economy of Ukraine are outlined. The priorities of regional structural policy institutionalization should be the mechanisms of contradictions overcoming and interests harmonization at distribution and use of regional development potential, formation of normative-legal support of structural transformations in economy of regions, development and implementation of measures for attracting investors in the economic sectors of the regions, which can be the drivers of transformational changes (mining and processing industry, high-tech industry, services, agriculture). It is proposed to form an institutional model of regional economy structural modernization of Ukraine on the basis of vertical integrated structures and institutions for promoting small business. Keywords: structural modernization, regional policy, institutional model, EU, structural changes.

Application of an evaluation method of resource and environment carrying capacity in the adjustment of industrial structure in Tibet

With the degradation of natural resources and environment caused by industrial development in some developing countries, the requirement of implementing a “social ecological” approach to development is imminent. Resource and environment carrying capacity provides a means of assessing regional development potential by measuring regional sustainable development in terms of economy, population and resources & environment. This study develops a conceptual framework for resource and environment carrying capacity estimation to support the co-development planning of industries, population and resources & environment. First, the framework constructs an index system for evaluating importance of industry or influence based on the role of industry played in the local socio-economic system. Then, the framework computes the quantitative relations through the importance of local industry, population size and resource utilization and environment effects, and subsequently estimates the resource and environment carrying capacity of the study area. With a particular attention to its land resources, water resources and environment, the Tibet case study shows that: the non-ferrous metal mining, tourism, liquor and refined tea industries play a pillar role in the Tibet’s socio-economic system; under each industrial structure, land resource carrying capacity is the weakest, and water resources carrying capacity is the strongest; to focus on tourism will improve local resource and environment carrying capacity. The research results provide a solid guide for Tibet government’s co-actions in industrial restructuring, ecological protection, and the pursuit of economic development. This study will contribute to bridge the gap between theoretical research and practical applications of resource and environment carrying capacity, and help local governments plan the regional “socio-ecological” sustainable development.

Світовий досвід державної підтримки в системі публічного управління розвитком територіальних громад

Achieving sustainable development of the countries against the background of overcoming the problems and backwardness of some territories, reducing the disproportion of socio-economic indicators, creating conditions for the development of competitive economic environment, and achieving a high standard of living form the main directions of regional policy in many countries, including the European Union. Detailed study of the experience in the formation and implementation of regional policy, the positive examples and trends of some countries and, in particular, EU member states, that have achieved economic growth and improved the welfare of their residents, are relevant for the development of modern Ukraine and its regions during the ongoing European integration processes, socio-economic changes and the formation of Ukraine’s own national regional policy. Analysis of the uneven development of territories and the identification of the main characteristics of this asymmetry allow not only to determine the current state of disproportion in regional development potentials, but also to assess the regional policy directions aimed at eliminating the disproportion. European integration direction in Ukraine’s policy confirms the relevance of a comprehensive study of the regional policy experience in the world and the EU, in particular, especially that of the best practices of Central and Eastern Europe, the latter demonstrating stable positive changes in socio-economic development. This experience could be useful for Ukraine to form and implement its own regional policy principles of organizing regional and local development management and building up local self-government.

Теоретические и прикладные аспекты измерения потенциалов экономического развития регионов России

The paper presents a new direction in methodology of modeling the potentials of regional economic growth developed by the authors in their previous studies. The proposed approach is based on decomposition of the extended production function in the Mankiw – Romer – Weil model and measuring statistically unobserved composition factors characterizing innovative, investment and human potential of regional development. This model enables defining the weight vectors of initial indicators for different groups of spatial entities. Detected weights of statistically observed indicators are the basis for structural analysis of economic growth specifics in different regions. Multiway Data Analysis is the basic method to define these potentials quantitatively. Based on this method of multivariate analysis with statistically observed indicators describing various components of regional economic growth in the period from 2001 to 2015, obtained were estimates of each of the three specified potentials per year per Russian Federation constituent member under consideration. The dynamic analysis in form of such calculations assists in comparing the potentials in individual regions. The information gained also helps in the dynamic analysis of different potentials within regions concerning cities numbering over a million inhabitants. A detailed retrospective study of the regional growth made it possible to carry out an integrated analysis and form identical groups thereafter. The time series obtained can serve as statistical tools for determining the contribution of the three composition factors of growth to each constituent member of the Russian Federation through repeated application of Multiway Data Analysis already to these factors. By way of such calculation the aggregate potential of economic growth for the group of the regions under consideration can be formed

ВПЛИВ ІНФРАСТРУКТУРИ РИНКУ НА РЕАЛІЗАЦІЮ СТРАТЕГІЇ РОЗВИТКУ ПРИЧОРНОМОРСЬКОГО РЕГІОНУ

Transformation of regional problems into opportunities based on optimization of regional development potential is determined as one of the most important tasks of crisis management.The aim of the article is to make an assessment of the market infrastructure state of the Black Sea region and to justify the expediency of the development strategy realization, in particular, by cross-border cooperation intensifying, based on the infrastructure improvement. The study is based on the use of general scientific and special-scientific methods of scientific knowledge.The method of system analysis was used to study the preconditions of the regional development strategy formation and its successful implementation.Cross-border cooperation is an important mechanism for social and economic development, international cooperation of Ukrainian regions, in particular the Black Sea region.It has been determined that the Black Sea region should become the basis for the implementation of the direction of cross-border cooperation of the State Strategy for Regional Development until 2027.Transport potential has been identified as the most important component of the «hard» part of the infrastructure for the implementation of the strategy for the development of cross-border cooperation in the Black Sea region.Among the elements of «soft» infrastructure deserves special attention to the financial system, the education system, and the public administration system. It is justified that the goal of state regulation of regional development is to ensure sustainable development of the region, taking into account the interests of stakeholders, the main of which are society, business and the state.It is determined that the development of transport infrastructure is a common point of regional development strategies and cross-border cooperation programs.The formation of cross-border clusters on the basis of maritime transport enterprises in the region is appropriate.The existence of cross-border clusters is recognized as a prerequisite for increasing the investment attractiveness level and the regional entities innovation activity.The need to improve the tools of public administration in the field of cross-border cooperation and develop of directions to solve legal, organizational, financial, economic, social, cultural problems that arise in the process of cross-border cooperation has been identified

URBANIZATION AND DYNAMICS OF ECONOMIC GROWTH (THE CASE OF NUTS 2 REGIONS OF EUROPEAN UNION)

Regional development policies based on local potential triggers a shift in the economic structure of territories. Exogenous and endogenous factors determine potential of regional development and it is necessary to use different indicators and methods to its evaluation. For the paper purpose, it is required to define metropolitan and peripheral functions as well as urban areas in the form of geographic models, depicting their spatial distribution in the European Union (EU). Nowadays, regions are increasingly becoming the drivers of the economy. All regions possess development opportunities – however, use these options enough, and hence the competitiveness of regions must be efficient enough. The paper focuses on dividing the EU NUTS 2 regions based on geographic models of the European economy into efficient and inefficient ones and identifying an optimal benchmark for inefficient regions as a strategy for enhancing their economic structure to measure regional efforts and progress.

Engagement of Regional Stakeholders in Territory Marketing of Latvian Regions

This article is aimed at empirical establishment of the role of territory marketing in strategic development of Latvian regions from the point of view of regional stakeholders – population, entrepreneurs and the heads of local governments. The potential of regional development is characterized by the flows of strategic resources, which on the basis of resource approach concept form methodological base of strategic, i.e. long-term, development of regions instead of the short-term one. The results of the author’s empirical research showed that the significance of marketing factors, i.e. factors which were created by people in the course of purposeful market activity, was much higher than the significance of non-marketing factors. At the same time, non-marketing factors were much better developed in Latvian regions than marketing factors and it was a practical economic problem, which hindered strategic development of Latvian regions. The authors offer to use a new index, i.e. real marketing force of the factor, and have developed a new scientific product which is an assessment of real marketing force of some factors for Latvian regions. It can be used by specialists and practitioners in the sphere of regional policy and development to assess, monitor and use such tools of territory marketing, which are based on regional stakeholders’ opinion as the framework of legitimacy of these tools.

Methodological approaches to the assessmentof regional development of RD

The article examines the methodological approaches to the assessment of regional development of RD. In principle, it can be said that Dagestan has significant potential for regional development. However, the current state and development of the economy indicates the complete absence of any coordinated policy of the federal and regional authorities to regulate the development of this sector of the regional economy.