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ANALYSIS OF THE SOCIO-ECONOMIC DEVELOPMENT OF UKRAINIAN REGIONS
Оlena KOZYREVА1, Rita SAGAIDAK-NIKITUK2, Natalia DEMCHENKO3
National University of Pharmacy, Ukraine
Abstract. For a long period of time from 1991 to 2016, the socio-economic development of Ukrainian regions was characterized by enhanced differentiation and persistent inequality. Permanent preservation of the gap between the maximum and minimum values of indicators of socio-economic development of regions, in particular, the GRP per capita (8.8 times in 2014); disposable income of populace (10.3% in 2015); unemployment rate according to ILO methodology (in 2.8 times in January-September 2016), the volume of realized industrial products (38,9 times in January-September 2016) indicate the persistence of centre-periphery relations between regions in the economic space of the country. This situation reduces the overall efficiency of the economy, which is reflected by the decline of Ukraine's position in the rankings of international organizations. According to the global competitiveness index in 2015, Ukraine has shifted from 76 to 79 place compared with 2014, according to the Index of Human Development, there was a slight increase from 83 to 81 place. To crown it all, taking into account the complexity of modern processes of Ukrainian regions' socio-economic development, the total assessment of determination of Ukrainian regions' levels of socio-economic development is required. The purpose of the article implies prompting the research results of determining the problem concerning the consolidated assessment of the socio-economic development of Ukrainian regions. Methodology. The article examines the processes of socio-economic development of Ukrainian regions and offers an analytical scheme of identification stage of problematic of the regions' socioeconomic development. The article justifies a system of partial indicators and on its basis calculates the integral and generalizing indicators of economic and social development of Ukrainian regions. Analysis of recent researches and publications. Issues of spatial development of the country's regions have researched Italo F., Baklanov P., Boyer G., Bramanti A., Grossetti M., Dmytryshyn L., Krugman P., Lappo G., Demyanenko О., Myrdal G., Fujita М., etc. Statement of the problem. However, reasoning the topical approach to the determination of the level of socio-economic development of the country's regions requires in-depth development that in its turn determines the relevance of this article.
Key words: socio-economic development of region, irregularity, gross regional product, unemployment rate, migration index, problematic.
JEL Classification: H50, J10
1. Introduction
Socio-economic development of Ukraine is based on the substantial positive changes in the regions. So, transition processes in Ukraine were differently marked on the development ofits regions: some of them managed to mobilize their capacity and gradually adapt to difficult economic conditions, while the others, as before, are currently in the state of deep economic stagnation, which has led to an increase in regional inequality.
To crown it all, taking into account the complexity of modern processes of Ukrainian regions' socioeconomic development, the total assessment of
determination of Ukrainian regions' levels of socioeconomic development is required.
2. Literature Review
Modern processes of the socio-economic development of Ukrainian regions' are complex and poorly defined and, therefore, require a detailed analysis to determine the factors of their irregularity.
In the scientific economic literature, there are three main approaches to the survey of socio-economic processes, which are based on: modelling, analytical
Corresponding author:
1 Department of Management and Economics, National University of Pharmacy. E-mail: [email protected]
2 Department of Management and Administration, National University of Pharmacy. E-mail: [email protected]
3 Department of Management and Administration, National University of Pharmacy. E-mail: [email protected]
schemes or a combination of both directions together (Piermartini, 2005; Ostashko, Voloschenko-Hold'em, 2011). Each of the abovementioned approaches has certain advantages and disadvantages, which are thoroughly analysed in the work (Tochilina, 2012).
Analysis of a number of studies [5-11], which studied the processes of the regions' socio-economic development, allows offering a certain identification stage of problematic concerning the country's regions socio-economic development.
3. Analysis of the economic development of Ukrainian regions
One of the main indicators determining the economic development level of the country regions is GDP per
person. Fig. 1 shows the distribution of Ukrainian regions on this indicator in 2013.
As can be judged from Fig. 1, the leader in the country in terms of GRP per person is the city of Kyiv - 109402 UAH, which is far ahead of the second region in the range, namely, Dnipropetrovsk region -46333 UAH. The following areas are Kyiv region -39988 UAH, Poltava region - 39962 UAH, Donetsk region - 37830 UAH, and Kharkiv region - UAH 31128. Outsiders of GRP per person in the country are the following regions: Chernivtsi - 15154 UAH, Ternopil -16819 UAH, Rivne - UAH 19003 and Kherson -UAH 19311.
In accordance with GRP indicator per person to the average rate within the country, regions were divided as follows (Fig. 2).
Region
Kyiv city Dnipropetrovs'k Kyiv Region Poltava Donets'k Ukraine together Kharkiv Zaporizhzhya Odesa Mykolayiv Cherkasy Kirovograd Lviv Luhans'k Ivano-Frankivs'k Sumy Chernihiv Vinnytsya Zhytomer Khmelnytsky Volyn Kherson Rivne Zakarpatya Ternopil Chernivtsi
109402
46333 I 39988 39962 37830
33473 31128 30526 29118 27355 26168 25533 I 24937 24514 24022 23517 22603 22303 20286 20165 19817 19311 19003 17044 16819 15154
10000 20000 30000 40000 50000 60000 70000 80000 90000 100000 110000
GRP per
person,
UAH
Fig. 1. The diagram of Ukrainian regions division according to the GRP indicator per person (2013)
Source: the author's calculations
0
2001 year 2013 year
56% (14) 24% (6) 56% (14) 20% (5)
20% (5) 24% (6)
Fig. 2. Division of Ukrainian regions in accordance with GRP indicator per person to the average rate within the country in 2001 and 2003: 1 - more than 100%; 2 - from 75% to 99%; 3 - less than 75%
Source: the author's calculations
-30
Reducing GRP per person, % ^3 3
-20
Region
-10 0
Kyiv Region Dnipropetrovs'k Donets'k Poltava Cherkasy Kyiv Kirovograd
-9,7
-12,5 -15 ■ -15,1 ■
-18
I 2,2
Lviv I 0,6 Zhytomer | 0,4
Kherson Volyn Odesa
10
20
17,4
13,8
12 10,6 9,6
Rivne
Zaporizhzhya Sumy
30
Growth of GRP per person, % 26,4
-30
-20
-10
n
Fig. 3. The dynamics of GRP changes per person to the average rate within the country in different Ukrainian regions in 2000-2013
Source: the author's calculations
Obviously, the structure of Ukrainian regions according to this indicator has slightly changed. Only Kyiv region was replaced from the second group to the first while Zaporizhzhia and Odesa regions were replaced vice versa, from the first group to the second.
The biggest increase of the GRP indicator per person to the average rate in Ukraine in 2013 in comparison with 2001 was detected in Kyiv region - 26,4%, Dnepropetrovsk region - 17,4%, Donetsk region -13,8%, and Poltava region - 12,0% (Fig. 3).
Meanwhile, a decrease of the GRP indicator was present in Sumy region- 23,3%, Zaporizhzhia - 18,0%, Rivne region - 15,1%, and Odesa region - 15,0%.
4. Analysis of the regions' social development
While scientists characterize the economic development of the regions by one indicator - the GRP indicator per person, several indicators characterize the social development. Thus, the analysis of some works (Omarov, 2014; Gaiman, 2009; Dobkin, Chernov, Kernes, 2010; Hranberh, 2001; Kuznetsova, 2014; Klebanova, Kizim, 2012) gives an opportunity to offer the following set: the income per capita, the unemployment rate and migration coefficient.
According to the rate of income per capita, Ukrainian regions in 2013 were distributed as follows (Fig. 4).
Region
0 10000 20000 30000 40000 50000 60000 70000
Fig. 4. Diagram of Ukrainian regions' distribution according to income per person in 2013
Source: the author's calculations
As can be judged from Fig. 5, the leader in terms of the income rate per person in the country is Kyiv city -UAH 65672,8 which is far ahead of the second value of Dnepropetrovsk region - UAH 33352,1.
At the following places are Zaporizhzhia region -31106,2 UAH, Kyiv region - 29361,5 UAH, Kharkiv region - UAH 27516,7 and Poltava region -26998,5 UAH. Outsiders by income per person in the country are Zakarpattia region - 17789,7 UAH, Chernivtsi region - 18984,8 UAH, Ternopil region -UAH 19273,0 and Luhansk region - UAH 19920,6.
The unemployment rate of Ukrainian regions' population in 2013 was as follows (Fig. 5).
Subject to Fig. 5, the leaders of the unemployment rate in the country are Kyiv city - 6,7%, Odesa -6,7%, and Kharkiv region - 7,8%, while the outsiders are Zhytomyr - 11,5%, Poltava - 11,5%, and Luhansk - 11,4% regions.
According to migration coefficient, Ukrainian regions in 2013 were distributed as follows (Fig. 6).
As can be judged from Fig. 6, the biggest positive migration coefficient has Kyiv region - 6,4%, Kyiv city - 6,0%, and Kharkiv region - 3,0%, while the negative migration coefficient has Luhansk region (-3,6%) and Donetsk region (-2,5%).
9,1
1 9,3 ■ 9,4
9,9 9,9
11
11,3
11,4 ment rate,
%
0 1 2 3 4 5 6 7 8 9 10 11 12
Fig. 5. Diagram of Ukrainian regions' distribution according to the unemployment rate in 2013
Source: the author's calculations
The results of integral estimation of Ukrainian regions' social development index (IC), which is offered in the work (Omarov, 2014), are described in Fig. 7.
According to Fig. 7, the city of Kyiv (1,0) is significantly ahead of other regions of the country subject to the integral indicator of social development. Kyiv region is in the second place - 0,6346, it is followed by Odesa region- 0,5065, Kharkiv region - 0,4338, and Dnipropetrovsk region - 0,3725.
It should be stressed that the above-mentioned indicators of Ukrainian regions' social and economic development have different nature and have no
threshold, which could identify their problematic, and the need for the state support.
5. Conclusions
A significant number of half-peripheral and peripheral regions requires support from the state, aimed at aligning trends of the socio-economic development of top regions and problem regions, as well as the introduction of a mechanism to promote economic activities in the growth poles. The implementation of these measures requires regional support from the state, aimed at
Region 0 1 2 3 4 5 6 7 Positive migration rate, %
Kyiv Region 1 6,4
Kyiv 6
Kharkiv ■
Odesa ■ 1,9
Chernivtsi 1,5
Ivano-Frankivs'k 0,9
Poltava 0,8
Volyn 0,7
Lviv 0,6
Mykolayiv 0,6
Vinnytsya 0,2
Cherkasy 0,2
Dnipropetrovs'k 1 0,1
Ternopil 0,1
Khmelnytsky 0
-0,2 ■ Rivne
-0,4 M Zhytomer
-0,4 H Sumy
-0,4 Chernihiv
-0,5 ^m Zaporizhzhy
-0,6 Zakarpatya
-0,8 Kirovograd
-0,8 Kherson
Donets'k Luhans'k
Negative migration -4 rate, % -3 -2 -1 Region
Fig. 6. Diagram of Ukrainian regions' distribution according to migration coefficient
Source: the author's calculations
aligning trends of the socio-economic development of the regions.
However, the problems of reducing the inequality among socio-economic development of the Ukrainian regions, grounding of the current concepts of socioeconomic development of the country's regions require
in-depth development. The main purpose ofthis article is to analyse the processes of socio-economic development of Ukrainian regions. The system of fractional indicators is justified and, on its basis, the integral and generalizing indicators of economic and social development of the regions of Ukraine are calculated.
Regl0n Kyiv Kyiv Region Odesa Kharkiv Dnipropetrovs'k Zaporizhzhya Luhans'k Chernivtsi Donets'k Ivano-Frankivs'k Lviv Poltava Mykolayiv Volyn Khmelnytsky Sumy Vinnytsya Kirovograd Zakarpatya Cherkasy Chernihiv Zhytomer Kherson Rivne Ternopil
0,6346
0,5065
0,4338 0,3725
0,3247 0,3107
0,2848 I 0,2769 0,2721 0,2686
0,2403 0,2272
0,207 0,1809 0,1796 0,173 0,1307 0,1297 0,1253 0,1084 0,1065 0,0915 0,0777 0,0466 0,1 0,2 0,3
0,4
Ic
0,5
0,6
0,7
0,8
0,9
Fig. 7. Diagram of Ukrainian regions' distribution subject to the integral indicator of social development in 2013
Source: the author's calculations
1
0
References:
Piermartini, R., The, R. (2005). Demystifying Modelling Methods for Trade Policy, World Trade Organization, Geneva, p. 59.
Ostashko, T., Voloschenko-Hold'em, L. (2011). Emergency measures of WTO to protect the markets of agro-food goods, Kiyv: National Academy of Sciences, Institute of Economics and Forecasting, p. 224. The Prospect of Deep Free Trade between the European Union and Ukraine, (2006). Centre for European Policy Studies, Brussels, p. 238.
Tochilina, V. (2012). Markets of real economy in Ukraine's institutional ofWTO: conditions and integration, Kiyv: National Academy of Sciences, Institute of Economics and Forecasting, p. 552.
Omarov, Sh.A. (2014). Sustainable Development Strategy of Ukraine's regions: assessment and forecasting: monograph, Kharkiv: PH "INZHEK", 288 p.
Gaiman, O.A. (2009). Nonlinearity of economy and uneven development of regions: monograph, Kharkiv: PH "INZHEK", 428 p.
Dobkin, M., Chernov, S., Kernes, G. (2010). Fundamentals of Sustainable Development of the Kharkiv region by 2020: monograph, PH "INZHEK", 512 p.
Hranberh, A. (2001). Fundamentals rehyonalnoy economy, Moscow: SU HES, p. 495.
Kuznetsova, O.V. (2004). Economic development of regions: theoretical and practical aspects of state regulation: monograph, Moscow: Editorial URSS, p. 304.
Klebanova, T.S, Kizim, N.A. (2012). Nonequilibrium and cyclic dynamics of the socio-economic development of regions: assessment, analysis and forecasting: monograph, Kharkiv: PH "INZHEK", 512 p.
Елена КОЗИРЕВА, Рита САГАЙДАК-НИКИТЮК, Наталия Демченко
АНАЛИЗ СОЦИАЛЬНО-ЭКОНОМИЧЕСКОГО РАЗВИТИЯ РЕГИОНОВ УКРАИНЫ Аннотация. В течение длительного периода времени с 1991 по 2016 год социально-экономическое развитие регионов Украины характеризовалось усилением дифференциации и сохраняющегося неравенства. Постоянное сохранение разрыва между максимальными и минимальными значениями показателей социально-экономического развития регионов, в частности ВРП на душу населения (в 8,8 раза в 2014 году); доходов населения (10,3% в 2015 году); уровня безработицы согласно методологии МОТ (в 2,8 раза в январе-сентябре 2016 года), объема реализованной промышленной продукции (38,9 раза в январе-сентябре 2016 года) свидетельствуют о сохранении центр-периферийных отношений между регионами в экономическом пространстве страны. Такая ситуация снижает общую эффективность экономики, что отражается в снижении позиций Украины в рейтингах международных организаций. В соответствии с глобальным индексом конкурентоспособности в 2015 году Украина переместилась с 76 на 79 место по сравнению с 2014 годом. Поэтому, учитывая сложность современных процессов социально-экономического развития регионов Украины, необходима общая оценка уровня их социально-экономического развития. Цель статьи -обосновать результаты исследований интегральной оценки социально-экономического развития регионов Украины. Методология. В статье рассматриваются процессы социально-экономического развития регионов Украины и предлагается аналитическая схема выявления проблемных вопросов социально-экономического развития регионов. В статье обоснована система частных показателей и на ее основе вычисляются интегральные и обобщающие показатели экономического и социального развития регионов Украины. Анализ последних исследований и публикаций. Вопросы пространственного развития регионов страны исследовали Итало Ф., Бакланов П., Бойер Г., Браманти А., Гроссетти М., Дмитришин Л., Кругман П., Лаппо Г., Демьяненко О., Мюрдаль Г., Фуджита М. и др. Постановка проблемы. Однако обоснование актуального подхода к определению уровня социально-экономического развития регионов страны требует углубленного анализа, что в свою очередь определяет актуальность данной статьи.
