Evaluation of interaction between chosen indicators of development of regions in Ukraine
DOI:
https://doi.org/10.24136/eq.2019.016Keywords:
regional development, regional economics, economic growth, UkraineAbstract
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
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.
DOI: https://doi.org/10.17512/pjms.2018.17.1.03
View in Google Scholar
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.
DOI: https://doi.org/10.1016/j.jfbs.2015.04.004
View in Google Scholar
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.
DOI: https://doi.org/10.1007/s12076-017-0192-z
View in Google Scholar
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.
DOI: https://doi.org/10.1007/s00168-007-0185-8
View in Google Scholar
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.
DOI: https://doi.org/10.3166/ges.11.9-21
View in Google Scholar
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.
DOI: https://doi.org/10.11118/actaun201260070119
View in Google Scholar
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.
DOI: https://doi.org/10.33382/cejllpm.2018.01.01
View in Google Scholar
Cvetanović, S., Filipović, M., Nikolić, M., & Belović, D. (2015). Endogenous growth theory and regional development policy. Spatium, 34. doi: 10.2298/SPAT1534010C.
DOI: https://doi.org/10.2298/SPAT1534010C
View in Google Scholar
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.
DOI: https://doi.org/10.1007/s11123-009-0136-8
View in Google Scholar
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.
DOI: https://doi.org/10.1016/j.rser.2015.03.082
View in Google Scholar
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.
DOI: https://doi.org/10.1007/978-3-540-70924-4
View in Google Scholar
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.
DOI: https://doi.org/10.1016/j.regsciurbeco.2011.08.006
View in Google Scholar
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.
DOI: https://doi.org/10.1515/revecp-2017-0002
View in Google Scholar
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.
DOI: https://doi.org/10.1515/aicue-2015-0008
View in Google Scholar
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.
DOI: https://doi.org/10.15376/biores.13.2.2759-2774
View in Google Scholar
Hudáková, J., Fiľa, M., & Maroš, M. (2017). Innovation potential of the regions in the Slovak republic. Acta Oeconomica Universitatis Selye, 6(2).
View in Google Scholar
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.
View in Google Scholar
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.
DOI: https://doi.org/10.15179/ces.16.2.3
View in Google Scholar
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.
DOI: https://doi.org/10.24136/10.24136/oc.2018.017
View in Google Scholar
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.
DOI: https://doi.org/10.15201/hungeobull.64.4.7
View in Google Scholar
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.
DOI: https://doi.org/10.33382/cejllpm.2018.01.03
View in Google Scholar
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.
DOI: https://doi.org/10.2478/v10089-011-0002-0
View in Google Scholar
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.
DOI: https://doi.org/10.24136/oc.2019.005
View in Google Scholar
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.
DOI: https://doi.org/10.21003/ea.V159-09
View in Google Scholar
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).
View in Google Scholar
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.
DOI: https://doi.org/10.1007/s00038-013-0457-2
View in Google Scholar
Nagy, B. Z. (2016). Regional inequalities in the European Union. Acta Oeconomica Universitatis Selye, 5(1).
View in Google Scholar
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.
DOI: https://doi.org/10.1016/j.worlddev.2014.06.001
View in Google Scholar
Nistor, P. (2012). FDI and regional disparities growth in Romania. Procedia Economics and Finance, 3. doi: 10.1016/S2212-5671(12)00223-7.
DOI: https://doi.org/10.1016/S2212-5671(12)00223-7
View in Google Scholar
Nowak, P. (2018). Regional variety in quality of life in Poland. Oeconomia Copernicana, 9(3). doi: 10.24136/oc.2018.019.
DOI: https://doi.org/10.24136/oc.2018.019
View in Google Scholar
Obtulovič, P. (2010). Biostatistics. Nitra: Slovak University of Agriculture in Nitra.
View in Google Scholar
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.
DOI: https://doi.org/10.1007/s12197-013-9277-8
View in Google Scholar
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.
DOI: https://doi.org/10.6000/1929-7092.2017.06.07
View in Google Scholar
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.
DOI: https://doi.org/10.1016/j.jce.2007.05.001
View in Google Scholar
Savi, P. (2009). A general view on regional economics. In M. A. Galindo, J. Guzman & D. Ribeiro (Eds). Entrepreneurship and business. Berlin, Heidelberg: Springer.
View in Google Scholar
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.
DOI: https://doi.org/10.1007/s10668-008-9184-x
View in Google Scholar
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.
DOI: https://doi.org/10.17221/270/2015-AGRICECON
View in Google Scholar
State Statistics Committee of Ukraine (2011). Ukraine's foreign trade. Statistical yearbook. Kyiv.
View in Google Scholar
State Statistics Service of Ukraine (2011). Population of Ukraine in 2010. Demographic yearbook. Kyiv.
View in Google Scholar
State Statistics Service of Ukraine (2014). Gross regional product in 2012. Statistical publication. Kyiv.
View in Google Scholar
State Statistics Service of Ukraine (2016a). Investment of external economic activity of Ukraine. Statistical publication. Kyiv.
View in Google Scholar
State Statistics Service of Ukraine (2016b). Statistical yearbook of Ukraine for 2015. Kyiv.
View in Google Scholar
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).
View in Google Scholar
State Statistics Service of Ukraine (2016d). Ukraine's foreign trade. Statistical yearbook. Kyiv.
View in Google Scholar
State Statistics Service of Ukraine (2017). Gross regional product in 2015. Statistical publication. Kyiv.
View in Google Scholar
Svec, M. (2011). Bridget Jones – the social risks of flexible forms of employment. Pravo v umeni a umeni v pravu.
View in Google Scholar
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.
DOI: https://doi.org/10.1016/j.resconrec.2017.07.017
View in Google Scholar
Wyrwa, J. (2018). Foreign direct investments and Poland’s economic development – current situation and development prospects. Acta Oeconomica Universitatis Selye, 7(2).
View in Google Scholar
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.
DOI: https://doi.org/10.1016/j.jce.2014.07.002
View in Google Scholar
