FORMATION OF THE EUROPEAN INSTITUTIONAL MODEL OF THE REGIONAL ECONOMY STRUCTURAL MODERNIZATION

  • M. Shashyna Or Igor Sikorsky Kyiv Polytechnic Institute
Keywords: structural modernization, regional policy, institutional model, EU, structural changes

Abstract

Within the EU countries, an effective institutional model has been created to ensure structural regional modernization of the economy, which applies not only to all hierarchical levels of government, but also to non-governmental organizations. This system makes it possible to implement the principles of sustainable development of the outermost regions, as it is quite dense and detailed. The current realities of regional development of Ukraine’s regions, their disproportion and asymmetry raise the necessity for a thorough structural adjustment, the realization of which is impossible without analyzing the best practices of the world in the implementation of economic and structural regional policies.

The purpose of the article is to study the practical aspects of formation of the European institutional model of regional economy structural modernization.

The article substantiates the essence of the concept of "structural modernization of the regional economy". The historical process of forming the institutional model of the regional economy structural modernization in Europe is revealed. The principles of building the European model of structural modernization are revealed, namely: leadership and horizontal coordination, vertical coordination, stakeholder involvement, evaluation and review, definition of indicators and monitoring. The main institutions contributing to the structural modernization of European regions have been identified. The integral coefficients of structural shifts in the regions of Ukraine in 2017 were calculated and the regions that underwent the largest structural changes were identified. The main causes of structural imbalances in the regional economy of Ukraine are outlined.

The priorities of regional structural policy institutionalization should be the mechanisms of contradictions overcoming and interests harmonization at distribution and use of regional development potential, formation of normative-legal support of structural transformations  in economy of regions, development and implementation of measures for attracting investors in the economic sectors of the regions, which can be the drivers of transformational changes (mining and processing industry, high-tech industry, services, agriculture). It is proposed to form an institutional model of regional economy structural modernization of Ukraine on the basis of vertical integrated structures and institutions for promoting small business.

Author Biography

M. Shashyna, Or Igor Sikorsky Kyiv Polytechnic Institute

Ph.D., Associate Professor

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Published
2020-04-03
How to Cite
ShashynaM. (2020). FORMATION OF THE EUROPEAN INSTITUTIONAL MODEL OF THE REGIONAL ECONOMY STRUCTURAL MODERNIZATION. Municipal Economy of Cities, 2(155), 58-63. Retrieved from https://khg.kname.edu.ua/index.php/khg/article/view/5583