Evaluation of interaction between chosen indicators of development of regions in Ukraine

Keywords: regional development, regional economics, economic growth, Ukraine

Abstract

Research background: In recent years, special attention has been given to the research direction regarding the study of economic, social, and demographic aspects of regional development. This direction is especially important for transition countries, including Ukraine. Despite that, there is a lack of research studies in which interdependencies of economic and demographic indicators of Ukraine’s regions are investigated.

Purpose of the article: The paper assesses the relationships between the selected indicators of Ukrainian regions (export of goods per capita, foreign direct investment per capita, and the average resident population) and gross regional product per capita.

Methods: Research results were compared in the periods before and during the military conflict in the eastern part of the country, based on regional data for 2010 and 2015. We used a multiple linear econometric model and tested multicollinearity.

Findings & Value added: The analysis confirms that there is a positive correlation between export of goods and gross regional product and between foreign direct investment and gross regional product. That is why it is necessary to pay attention to the effective use of existing trade opportunities, especially within the framework of the Ukraine — EU Association Agreement, and to elaborate directions for further expansion of export activities. It is important to provide simpler and more understandable conditions in order to attract foreign investments in Ukrainian regions.

Our study also shows that there is no influence of the average resident population on gross regional product. In many aspects, the interaction between demographic and economic components takes place through the labour market. This situation indicates that insufficient attention is given to regional employment issues, and the quantitative and structural imbalance is observed on the labour market at the regional level. In our opinion, to improve the situation, targeted activities should be elaborated on in the frame of regional development programmes.

Downloads

Download data is not yet available.

References

Adamisin, P., Kotulic, R., Mura, L., Kravcakova Vozarova, I., & Vavrek, R. (2018). Managerial approaches of environmental projects: an empirical study. Polish Journal of Management Studies, 17(1). doi: 10.17512/pjms. 2018.17.1.03.

Basco, R. (2015). Family business and regional development – A theoretical model of regional familiness. Journal of Family Business Strategy, 6(4). doi: 10.1016/j.jfbs.2015.04.004.

Beenstock, M., Felsenstein, D., & Rubin, Z. (2017). Does foreign direct investment polarize regional earnings? Some evidence from Israel. Letters in Spatial and Resource Sciences, 10(3). doi: 10.1007/s12076-017-0192-z.

Capello, R. (2008). Regional economics in its 1950s: recent theoretical directions and future challenges. Annals of Regional Science, 42(4). doi: 10.1007/s 00168-007-0185-8.

Capello, R. (2009). Regional growth and local development theories: Conceptual evolution over fifty years of regional science. Géographie, économie, société, 11(1). doi:10.3166/ges.11.9-21.

Chmelíková, G., & Redlichová, R. (2012). Effects of direct investments on the regional development. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 60(7). doi: 10.11118/actaun201260070119.

Cseh Papp, I., Varga, E., Schwarczová L., & Hajós, L. (2018). Public work in an international and Hungarian context. Central European Journal of Labour Law and Personnel Management, 1(1). doi: 10.33382/cejllpm.2018.01.01.

Cvetanović, S., Filipović, M., Nikolić, M., & Belović, D. (2015). Endogenous growth theory and regional development policy. Spatium, 34. doi: 10.2298/SPAT1534010C.

Demchuk, P., & Zelenyuk, V. (2009). Testing differences in efficiency of regions within a country: the case of Ukraine. Journal of Productivity Analysis, 32(2). doi: 10.1007/s11123-009-0136-8.

Ejdemo, T., & Söderholm, P. (2015). Wind power, regional development and benefit-sharing: the case of Northern Sweden. Renewable and Sustainable Energy Reviews, 47. doi: 10.1016/j.rser.2015.03.082.

Fratesi, U., & Senn, L. (2009). Regional growth, connections and economic modelling: an introduction. In U. Fratesi & L. Senn, (Eds). Growth and innovation of competitive regions – the role of internal and external connections. Advances in Spatial Science. Berlin, Heidelberg: Springer.

Fu, Y., & Gabriel, S. A. (2012). Labor migration, human capital agglomeration and regional development in China. Regional Science and Urban Economics, 42(3). doi: 10.1016/j.regsciurbeco.2011.08.006.

Guliak, R. (2017). New resonance approach to competitiveness interventions in lagging regions: the case of Ukraine before the armed conflict. Review of Economic Perspectives, 17(1). doi: 10.1515/revecp-2017-0002.

Hajduová, Z., Lacko, R., Mildeová, S., & Stričík, M. (2015). Case study in the field of innovation in selected companies in Slovak Republic. Annals of the Alexandru Ioan Cuza University-Economics, 62(1). doi: 10.1515/aicue-2015-0008.

Hitka, M., Lorincova, S., Bartakova, G. P., Lizbetinova, L., Starchon, P., Li, C., Zaborova, E., Markova, T., Schmidtova, J., & Mura, L. (2018). Strategic tool of human resource management for operation of SMEs in the wood-processing industry. Bioresources, 13(2). doi: 10.15376/biores.13.2.2759-2774.

Hudáková, J., Fiľa, M., & Maroš, M. (2017). Innovation potential of the regions in the Slovak republic. Acta Oeconomica Universitatis Selye, 6(2).

Jaskova, D., & Haviernikova, K. (2016). The assessment of Slovak regions' competitiveness. SGEM 2016, BK 2: Political sciences, law, finance, economics and tourism conference proceedings, Vol III, Book Series: International Multidisciplinary Scientific Conferences on Social Sciences and Arts.

Kersan-Škabić, I., & Tijanić, L. (2014). The influence of foreign direct investments on regional development in Croatia. Croatian Economic Survey, 16(2). doi: 10.15179/ces.16.2.3.

Lewandowska, A., & Stopa, M. (2018). SMEs innovativeness and institutional support system: the local experiences in qualitative perspective. Polish case study. Oeconomia Copernicana, 9(2). doi: 10.24136/oc.2018.017.

Lončar, J., & Marinković, V. (2015). Analysis of socio-economic indicators in the context of the regional development of Eastern Croatia. Hungarian Geographical Bulletin, 64(4). doi: 10.15201/hungeobull.64.4.7.

Lorincová, S. (2018). Human resource and corporate culture: gender-based differences in the assessment. Central European Journal of Labour Law and Personnel Management, 1(1). doi: 10.33382/cejllpm.2018.01.03.

Makkonen, T. (2011). Innovation and regional socio-economic development – evidence from the Finnish local administrative units. Bulletin of Geography, 15. doi: 10.2478/v10089-011-0002-0.

Markhaichuk, M., & Zhuckovskaya, I. (2019). The spread of the regional intellectual capital: the case of the Russian Federation. Oeconomia Copernicana, 10(1). doi: 10.24136/oc.2019.005.

Melnyk, M., Synyutka, O., & Kushniretska, O. (2016). Spatial policy of regional metropolis development in Ukraine: Conceptual principles of formation. Economic Annals-XXI, 159(5-6). doi: 10.21003/ea.V159-09.

Mura, L., Daňová, M., Vavrek, R., & Dúbravská, M. 2017. Economic freedom – classification of its level and impact on the economic security. AD ALTA-Journal of Interdisciplinary Research, 7(2).

Murphy, A., Levchuk, N., Stickley, A., Roberts, B., & McKee, M. (2013). A country divided? Regional variation in mortality in Ukraine. International Journal of Public Health, 58(6). doi: 10.1007/s00038-013-0457-2.

Nagy, B. Z. (2016). Regional inequalities in the European Union. Acta Oeconomica Universitatis Selye, 5(1).

Naranpanawa, A., & Arora, R. (2014). Does trade liberalization promote regional disparities? Evidence from a multiregional CGE model of India. World Development, 64. doi: 10.1016/j.worlddev.2014.06.001.

Nistor, P. (2012). FDI and regional disparities growth in Romania. Procedia Economics and Finance, 3. doi: 10.1016/S2212-5671(12)00223-7.

Nowak, P. (2018). Regional variety in quality of life in Poland. Oeconomia Copernicana, 9(3). doi: 10.24136/oc.2018.019.

Obtulovič, P. (2010). Biostatistics. Nitra: Slovak University of Agriculture in Nitra.

Pistoresi, B., & Venturelli, V. (2015). Credit, venture capital and regional economic growth. Journal of Economics and Finance, 39(4). doi: 10.1007/s12197-013-9277-8.

Porrini, D., & Striani, F. (2017). Sustainable development as a macro-regional goal. Journal of Reviews on Global Economics, 6. doi: 10.6000/1929-7092.2017.06.07.

Ran, J., Voon, J.P., & Li, G. (2007). How does FDI affect China? Evidence from industries and provinces. Journal of Comparative Economics, 35(4). doi: 10.1016/j.jce.2007.05.001.

Savi, P. (2009). A general view on regional economics. In M. A. Galindo, J. Guzman & D. Ribeiro (Eds). Entrepreneurship and business. Berlin, Heidelberg: Springer.

Sedlacek, S., & Gaube, V. (2010). Regions on their way to sustainability: the role of institutions in fostering sustainable development at the regional level. Environment, Development and Sustainability, 12(1). doi: 10.1007/s10668-008-9184-x.

Simo, D., Mura, L., & Buleca, J. (2016). Assessment of milk production competitiveness of the Slovak Republic within the EU-27 countries. Agricultural Economics-Zemedelska Ekonomika, 62(10). doi: 10.17221/270/2015-AGRICE CON.

State Statistics Committee of Ukraine (2011). Ukraine's foreign trade. Statistical yearbook. Kyiv.

State Statistics Service of Ukraine (2011). Population of Ukraine in 2010. Demographic yearbook. Kyiv.

State Statistics Service of Ukraine (2014). Gross regional product in 2012. Statistical publication. Kyiv.

State Statistics Service of Ukraine (2016a). Investment of external economic activity of Ukraine. Statistical publication. Kyiv.

State Statistics Service of Ukraine (2016b). Statistical yearbook of Ukraine for 2015. Kyiv.

State Statistics Service of Ukraine (2016c). The number of population (estimated) as of 01.01.2016 and the average number of population in 2015. Retrieved from http://www.ukrstat.gov.ua/operativ/operativ2015/ds/kn/kn_u/kn1215_u.html (17.12.2018).

State Statistics Service of Ukraine (2016d). Ukraine's foreign trade. Statistical yearbook. Kyiv.

State Statistics Service of Ukraine (2017). Gross regional product in 2015. Statistical publication. Kyiv.

Svec, M. (2011). Bridget Jones – the social risks of flexible forms of employment. Pravo v umeni a umeni v pravu.

Tian, X., Geng, Y., Viglia, S., Bleischwitz, R., Buonocore, E., & Ulgiati, S. (2017). Regional disparities in the Chinese economy. An emergy evaluation of provincial international trade. Resources, Conservation and Recycling, 126. doi: 10.1016/j.resconrec.2017.07.017.

Wyrwa, J. (2018). Foreign direct investments and Poland’s economic development – current situation and development prospects. Acta Oeconomica Universitatis Selye, 7(2).

Zhang, H., Zhang, H., & Zhang, J. (2015). Demographic age structure and economic development: Evidence from Chinese provinces. Journal of Comparative Economics, 43(1). doi: 10.1016/j.jce.2014.07.002.

Published
2019-06-30
How to Cite
Horská, E., Moroz, S., Poláková, Z., Nagyová, Ľudmila, & Paska, I. (2019). Evaluation of interaction between chosen indicators of development of regions in Ukraine. Equilibrium. Quarterly Journal of Economics and Economic Policy, 14(2), 341-357. https://doi.org/10.24136/eq.2019.016
Section
Articles