From the viewpoint of economic theory, art becomes a rightful economic entity in market relations through the forming of the artistic market (market of art, art-market), where aesthetical and commercial values interact and make the ground for the perception of the artwork as a good and forming of respective economic behavior principles. The art-market still remains to be at the emerging stage in conditions of Ukrainian reality. Yet the lack of modern understanding of the role the art plays in the economic development of the state and cultural and artistic policy adequate to civilizational challenges prevent our country from taking a decent place in the western world. The paper defines the role of art in conditions of globalization as a specific type of spiritual-practical understanding of reality, which in its artistic-descriptive form provides for the perception of the world integrally in the context of aesthetics and emotions, strengthening human values and helping deeper and brighter understanding of the nature and importance of processes at certain historical stages of human development. Current features and trends of art-market development in the world and in Ukraine are characterized, including the special relationship to globalization processes and civilization development, enthusiasm over artwork and passion to purchase of modern art-products as an investment capital; modernization of traditional functions of artistic institutions and new role of mediators; lack of clear price policy and the impossibility of pricing control; virtualization of art-market under the impact of modern information-telecommunication technologies, etc. The art-market as an objective reality of nowadays is substantiated to be included in modernized market processes based on the partnership of artists and businesses. In this context, the artwork market should be considered as an aesthetic-practical system, in which activity in the art industry is of commercial nature, which requires the activation of innovative marketing instruments.
The influence of the shadow economy on the development of trade in the regions of Ukraine is investigated. The factors that reduce the utilization efficiency of trade capacity in the socio-economic development of Ukrainian regions are identified. The principal factors of expansion of the shadow economy in the trade sphere of Ukrainian regions are outlined. These include substantial fiscal burden on business, presence of regulatory problems, high level of markets monopolization, weak economic growth, population poverty, poor competences of local governments. The main negative consequences of shadow trade for the economy of numerous regions of Ukraine are considered, in particular the reduced innovative capacity of economic development, spread of corruption, deformation of business culture, decrease of goods quality and consumers’ safety, distortion of market information, impossibility of timely and adequate activity from public administration and local governments. Three probable effects from reducing the efficiency of utilization of the capacity of socio-economic development in Ukrainian regions because of shadowing in the trade sphere are described, namely the financial losses of state and local budgets caused by the decrease of tax payments, growing unemployment and illegal labor, and the shortage of business profits due to worsening investment climate and declining value of assets of trading companies. Proposals for prospective directions of the de-shadowing of the trade sphere are substantiated. Mechanisms for increasing the efficiency of utilization of trade capacity in the socio-economic development of Ukrainian regions are outlined. The priority means of solving existing problems include normalization of the status of an individual entrepreneur in the trade sphere; modernization of wholesale and retail trade infrastructure; creating the right conditions for the spread of e-commerce and non-cash payments for purchased goods.
trade sphere, trade operations, wholesale trade, retail trade, shadow economy, de-shading, socio-economic potential, regions of Ukraine
The paper outlines the nature of the spatial approach to the evaluation of the market capacity of Ukrainian regions, which is based on the evaluation of accessibility and capacity of regional markets and their attractiveness. The paper substantiates the fact that the evaluation of regions’ market capacity requires a complex approach that takes into account the available economic capacity of a region from the viewpoint of evaluation of demand and supply on the regional goods market. The availability of the relationship between the volume of market capacity and the number of economic entities is empirically verified. The declining level of spatial inequality by the market capacity index is revealed. The fact that empirical models of the evaluation of the unequal distribution of economic activity represented in the research of foreign scientists confirm that the most densely populated regions and regions with high employment density have better consumer opportunities is emphasized. Based on regional data, the paper proves that density of population and employment density that characterize the consumer parameters of regional markets and testify to their size from the viewpoint of demand and production density that characterizes the degree of economic activity concentration in regions and shows the size of the regional market from the viewpoint of supply have an essential impact on forming of regions’ market capacity. Retail trade is emphasized as an important component of market capacity. Modern trends of trade development in Ukrainian regions that testify to substantial interregional differences regarding the scale (size) of markets and competitiveness level are characterized. The trends that characterize the dynamics of retail and wholesale trade, structural peculiarities, and specifics of spatial distribution at the territory of trade networks regions, available differentiation in the level of accessibility to trade services are detected. The conclusions on the opportunities to use the results of the evaluation of market capacity in the regions in regional planning are made.
regional economy, market capacity, employment, population density, market capacity index
The war in Eastern Ukraine resulted in the creation of a new type of problem regions - border areas in adverse conditions. It is a specific type of territory, the configuration of which may change under the influence of the political situation. The main feature of such areas is the need for an additional level of security. The allocation of border areas into a separate group requires in-depth theoretical and empirical research. The purpose of the article is to identify border areas in adverse conditions and outline the main problems of their development. The following methods were used for the study: statistical, historical, abstract and logical, systematic and comparative analysis. In the article, the border areas in adverse conditions are allocated into a separate group of problem regions of Ukraine and their intragroup structuring is carried out according to certain criteria: the degree of security of the territories and their involvement in hostilities, the type of border with the aggressor state (land, sea), the activity and nature of the conflict with the aggressor state, or the state with which the relationships require a sufficient level of security. The analysis of the main indicators of social and economic development of border areas in adverse conditions is carried out. The problems of territorial development inherent in all subgroups of border areas in adverse conditions (remoteness from economic development centers; increased migration; threat of military conflicts; low investment attractiveness) and specific problems within each subgroup are highlighted. The task of regional policy is to support the development of border areas in adverse conditions. The mechanisms for regulating the development of such areas should be developed separately for each of the selected subgroups. These mechanisms should help to strengthen the economic potential of these territories and state support for their social and economic development, as well as stimulate entrepreneurial activity in border areas, etc.
problem areas, border areas, development, threat, security
The article comprehends the phenomenon of spatial exclusion for the conditions of Ukraine. The existing concepts and approaches to the definition of exclusion are analyzed. Spatial exclusion is interpreted as a phenomenon when part of space (territory) limited in use for economic activities of society (inhabitants of the territory) expresses physical, economic, legal, social, political, and other types of restrictions. The concept includes mechanisms, processes, and elements that lead to restrictions in terms of the use of territories: accessibility, restrictions on obtaining economic benefits from the use of spatial resources, declining living conditions of the population. On the basis of legal norms, theoretical provisions, as well as spatial situations that arise in the field of spatial planning in Ukraine, many signs of spatial exclusion have been formed. They are concentrated in violation of the legal provisions of the use of territories; the system of spatial resources management of the territorial community; the uneven localization of investment in space; housing construction and housing policy; inconsistencies in urban planning documentation and strategies for socio-economic development of territories. Some problems and processes are considered on the example of Ukrainian cities. The characteristic features of spatial exclusion and the possibility of applying the concept to regulate spatial policy in Ukraine are analyzed, in particular, spatial exclusion should be interpreted more broadly than certain restrictions arising from violations of laws or regulations. The issues of spatial and investment policy of the government, its understanding of the tasks of territorial development, transparency in decision-making are important. As a result of current mistakes of specialists and decisions focused on temporary benefits, conditions are created for the growth of the cost of solving urban problems in the future and the deterioration of the state of the environment.
The paper evaluates the development capacity of the tourism and recreation industry in Ukrainian regions and analyzes its attractiveness. The results of the calculation of the integral attractiveness index for the tourism and recreation industry in Ukrainian regions for 2013 and 2018 are outlined. The values of subindices in the total attractiveness index rate for the tourism and recreation industry in Ukrainian regions are calculated. The structure of capital investment in the tourism and recreation industry of Ukraine across its regions is characterized. The factors of impact on forming of the development capacity of the tourism and recreation industry in Ukrainian regions are revealed and systematized. The analysis of calculation of the integral ATRI index for Ukrainian regions in 2018 resulted in revealing the following features of regional tourism and recreation systems: 1) indisputable domination of Kyiv not only by the level of integral ATRI index across Ukrainian regions but also by 8 out of its 19 main features, testifying to availability of the balanced set of competitive advantages that allow maximum efficient use of tourism and recreation capacity without unique natural tourism and recreation resources and support attractiveness of the tourism and recreation complex at consistently high level; 2) availability of three powerful regions with the highest attractiveness level of their tourism and recreation systems after Kyiv; 3) active growth of attractiveness of the tourism and recreation industry of catching-up regions; 4) substantial group of regions (9) with unbalanced and often limited set of the tourism and recreation resources and low quality of socio-economic and tourism infrastructure, which affects the investment attractiveness of their tourism and recreation system and the overall level of their attractiveness.
attractiveness, national heritage, territorial community, tourism and recreation industry, regions
Ukraine is a unitary state, yet historically various regions, oblasts, districts, and local areas have different levels of economic development. To secure sustainable economic and social development and provide social services guaranteed by the state for each citizen according to the Constitution, the mechanism of redistribution between revenues and expenditures of oblasts, regions, and territories through the budgets of a higher level is used. The paper aims to research the peculiarities of improving interbudgetary relations in conditions of authorities’ decentralization. The paper defines the nature of interbudgetary relations. The basic and reverse subsidies to Ukraine and Lvivska oblast are analyzed. The advantages and disadvantages the communities face at changing approaches to balancing local budgets are determined. Regulative documents that cover the interbudgetary relations in Ukraine are analyzed. Special attention is paid to the problem of local finances reforming, including the development of interbudgetary relations. The scheme of the economic interbudgetary relations system in Ukraine is developed. The ways to improve the system of interbudgetary relations in Ukraine are suggested. The negative and positive aspects, advantages, and disadvantages of the system of interbudgetary relations in Ukraine require the following improvements. 1. It is necessary to avoid the complete budget alignment in the process of budgets balancing by interbudgetary transfers as the major objective. 2. The interbudgetary transfers should be distributed based on a formal approach. 3. The changes have to be introduced to the calculation of medical and educational subsidies in terms of financial standard of budget provision to avoid the money deficit for coverage of necessary expenditures. 4. There is a need to improve interbudgetary relations at the levels of districts, villages, towns, and cities of district subordination. 5. Improvement of the mechanism of targeted benefits provision, their real evaluation, and control for the use of funds.
The relevance of the human development study in the context of mobile processes is substantiated. The difference between human development and the level and quality of life, well-being, human resources development, and sustainable development is determined. Problematic aspects of human development in Ukraine are analyzed. Negative economic determinations of human development in Ukraine intensify mobile processes, which is confirmed by the migration situation. The country's economy is becoming dependent on migration, which creates numerous risks of socio-economic and political nature. It is necessary to develop the conceptual foundations of human development policy in a highly mobile society for their leveling. Such a policy is proposed to be considered as a set of measures aimed at forming a favorable internal environment of human life with respect for the rights and freedoms of choice and movement, preserving the possibility of return and protection of citizens regardless of location. An appropriate concept for the formation of human development policy in a highly mobile society in Ukraine should be developed. The concept should combine three blocks of goals: general provisions of security, principles of regulation of movements, which apply to all categories of mobile persons, the purpose of which is to preserve social unity in conditions of a highly mobile society by increasing its spiritual and informational mobility; internal mobility with the aim of ensuring the redistribution of human potential according to the peculiarities of regional development, the high-quality infrastructure of internal movements for the formation of flexible relational human space, as well as direct and indirect impact on mobility through improving the human development environment (output vector). The latest paradigm of human development of a highly mobile society should be formed on the basis of the concept implementation in the ideological plan at the national level.
human development, level and quality of life, welfare, population mobility, human development policy, highly mobile society
The main tools for the formation and implementation of Innovation Policy and Cohesion Policy, which are used to achieve the priorities set in smart specialization strategies at the national and regional levels, are studied. The peculiarities of their use in the context of individual regions of the EU are analyzed, taking into account the trends and development needs of each individual region or country; depending on the selected areas of smart specialization; depending on the type of region according to the OECD classification by economic profile, etc. The most common tools for implementing smart specialization priorities are identified: supporting the functioning of clusters, improving business start-up procedures, public procurement, financial assistance, cooperation with other regions, creating various platforms to stimulate cooperation between enterprises, scientists and authorities, improving the training processes, etc. Two types of cluster policy are analyzed: funding support activities, such as cluster mapping and supporting cluster development, without identifying priority areas (such as the Czech Republic); support for certain areas of activity. Two types of public procurement are outlined: those that promote innovation, i.e. the purchase of direct results of innovation activities, and innovative, i.e. the purchase of an innovation process, the results of which are not yet presented on the market. Forms of providing financial assistance to economic entities in the development of innovations that use certain regions of the EU in their smart specialization strategies are given, including lending, subsidies, access to project funding programs, etc. The tools of regional innovative development in the context of traditional, new and experimental tools and their contribution to the generation, dissemination and use of knowledge are systematized. The active and passive tools for supporting the development of innovations in the field of small and medium business and the peculiarities of their use at the global, regional and micro levels are presented.
smart specialization strategies, tools for implementing smart specialization strategies, European Union
Environmental issues are extremely relevant today at the national and international levels. The EU has become the basic platform for the unified environmental strategy formation and the development of the European principles, as well as national systems of environmental legislation. The purpose of the article is to determine the peculiarities of the European market of environmental goods and services formation and development, disclose the regulatory framework for organic production in the EU, and outline strategic directions for the Ukrainian environmental market development. The article considers the peculiarities of the European market of environmental goods and services formation and development. The instruments of normative-legal regulation of the EU environmental market are defined, among which the Directive of the Council of the EU № 834/2007 and the Directive of the EU Commission № 889/2008 are singled out. Given the global environmental situation, the EU governments pay close attention to product safety and environmental friendliness. Therefore, in recent decades, it is especially important to improve the regulatory framework to control the friendliness of the environmental product. The structure of certified agricultural lands in the EU is analyzed. Emphasis is placed on the study of the development peculiarities of the EU market for organic products, namely the constant growth of demand for these products and growing prices. The current state of the environmental market of Germany and France is characterized. The main tendencies of the Ukrainian environmental market formation and development are determined. The analysis of the domestic market of organic products is carried out. Strategic directions of the Ukrainian environmental market development are defined, including the increase of the certified organic land area, the number of certified organic farms and volumes of organic production, the ensuring of environmental marking, the forming of the ecological management and products certification system, etc.
market of environmental goods and services, organic products, European Union
In the search for efficient decisions directed at the stimulation of regional development and improvement of regions’ innovativeness and investment attractiveness, the EU regions have long ago started paying attention to local communities. In particular, Polish local governments are granted an opportunity to conduct an active spatial policy of investment attraction using various instruments. In this context, the industrial parks play an important role among the created institutes of the business environment, because they create advantages for local communities and businesses. In particular, they promote investment attraction, entrepreneurship activation, employment and jobs increase, material cost minimization, etc. At the same time, the development of entrepreneurship environment institutes requires support at national, regional, and local levels. The development will be almost impossible without the creation of proper legal, political, economic, and social conditions for their activity. The paper aims to define major stimuli of industrial park development based on the Polish experience, the economic structure of which is similar to the Ukrainian one. This will contribute to the development of the ways to boost industrial park development in Ukraine, especially in the border areas. For the matter, the author outlines the major instruments used by Polish local communities to boost investment and entrepreneurship activity in the framework of industrial park development. The scientific paper emphasizes the analysis of legislation on creation, functioning, and support of Polish industrial park development, and further perspectives of their activity. Special attention is paid to general characteristics of the condition of industrial parks located in Polish border regions. The advantages of each of them are determined and examples of their creation and development are given. The research resulted in the allocation of two groups of stimuli of industrial parks development which are the precondition, according to the author, of industrial parks becoming the instrument of investment attraction, economic boost of the territories, and entrepreneurship activity growth: the stimuli of development of industrial parks’ organizational structure (public financial assistance; information and advisory support; grans of European funds; international cooperation / partnership; independent spatial policy at the local level) and the stimuli of entrepreneurship development in industrial parks (infrastructure (physical and soft); public financial assistance; tax incentives; investment grants; financial loans).
industrial park, regional development, border regions, regional policy, local governments
Economic Problems of Development of Types of Economic Activity
The article deals with the problem of information and analytical support for making management decisions within the assortment policy of the tour operator. The alternative approaches to the formation of profit indicators as the criteria for making management decisions within the assortment policy of the tour operator are analyzed. The danger of using such indicators as operating or gross profit as a target criterion of the tour operator’s assortment policy is substantiated. The article proves the advantages of using an alternative target criterion in the process of formation of the sales program of the tour operator in the form of a contribution margin indicator, which is formed on a systematic basis on the principles of direct costing. It suggests the methodical approach to determining the marginal cost of a tourist product based on the cost function of E. Heinen, which is based on the dependence of variable conversion costs on the number of repetitions of the business function for the period. The contribution margin indicator formed within the system of «simple direct costing» is emphasized to be a suitable criterion for forming only the operative sales program of the tour operator (for a short period of up to 1 year), as it does not take into account possible direct fixed costs, which are relevant when making strategic management decisions within the assortment policy of the tour operator. The article proves that within the framework of the strategic analysis of the sales program of the tour operator it is expedient to use the approach to the formation of the financial result that is based on the concept of complicated direct costing, which provides the appropriate decomposition of the fixed costs. The concept of multilevel contribution margin accounting system by K. Agthe was adapted for the needs of the tour operating industry, taking into account the specifics of hierarchical structuring of the elements of the tour operator’s sales program: «product – group of products – sales program».
tourist product, assortment policy, direct costing, variable and fixed costs, contribution margin
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