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.
Informal economy is rather difficult to define and demarcate in the methodological context. International Conference of Labour Statisticians in 2003 adopted a set of guidelines regarding definition of statistical categories of informal employment. These include for example employed unregistered own-account workers, contributing family workers, persons who work based on oral agreement, etc. Informal economy is a contentious topic in many developing countries as it brings about many elements that from several aspects adversely affect the development. The most commonly stressed are the fiscal implications (associated with tax revenue loss) and some social concerns. However, in some parts of the world informal sector went from being considered as a negative occurrence to be tolerated as a partial solution to some of the challenges that hinder development of rural regions and communities. The aim of the paper is to determine the relationship between informal economy and level of development and quality of life in Ukrainian regions. The paper examines the role of informal economy in regional structure of Ukraine, while confronting the findings with regional divergence in relevant indicators of development and quality of life. There are statistically significant differences in the size of the informal employment among different types of Ukrainian regions (by rural-urban typology). With increasing share of informal employment in the regions, the income level of households decreases significantly even when we take into consideration the level of unemployment.
This paper evaluates the effects of foreign direct investment (FDI) on the economic development of Ukrainian regions based on selected indicators (gross regional product, change of gross regional product, share of the industrial (manufacturing) sector, and employment and unemployment rates) in the 2003-2016 period. Employing an exploratory panel time-series approach, the results suggest that there is only a limited impact of FDI on the economic performance of the regions. The small influence of foreign direct investments is, among others, a consequence of political instability, weak governance, the military conflict in the East of the country, and incompleted reforms of the Ukrainian economy. We suggest that it is necessary to focus on targeted programs at both the regional and state levels in order to enhance the existing state of the economy. It is also important to ensure stability and transparency in the legislative processes, tax reforms, and other policy fields to facilitate the attraction of foreign direct investment, the creation of new jobs, and the increase of the income levels of the Ukrainian population.
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