Dynamics and efficiency of structural changes in the industrial sector of the economy of Ukrainian regions
Journal Title: Регіональна Економіка - Year 2017, Vol 85, Issue 3
Abstract
Despite the tendentious decline in the share of industry in total output, the national economy as a whole has a high level of industrialization, compared to the member states of the European Union. Given the globalization of world economic processes and, as a consequence, increased competition in commodity markets, the industrial sector of the national economy needs relevant assessments, the results of which will provide an analytical basis for the formation of trends in state industrial policy, in particular at the regional level. <br>The purpose of the article is to conduct a structural and dynamic assessment of the industrial sector of Ukrainian regions economy. <br>The key indicators that characterize the structure of the industrial sector of the economy and the effectiveness of its functioning are: the share of industry in the release of all types of economic activity, the share of industry in gross value added (GVA) of all types of economic activity, the share of the GVA industry in its output. The results of the calculation of these indicators have shown that during 2013-2015 the structure of the national economy’s industrial sector (by output) and the structure of the industry have undergone some changes in the direction of increasing their share of the processing industry while reducing the share of other types of industrial activity. The most significant of these changes were in the Vinnytsia region. <br>The results of the integrated assessment of the dynamics of structural indicators of the industrial regions of Ukraine revealed in general the most effective functioning of the industrial sector of Poltava region economy, which is explained by the largest (among the regions) share of extractive industry in it and the development of quarries (in particular, gas extraction). The latter is characterized by the highest share of airborne emissions in production (>50 per cent) among industrial activities. A similar situation was observed in the Kirovohrad and Luhansk regions. Instead, Zaporizhzhya region having occupied the 1-st place among the regions of Ukraine by the level of industrialization in the economy in 2015, was an outsider by the indicator of the industry efficiency. This situation is due to a large share of the processing industry (79.57 per cent) in the structure of the industrial sector of the economy of this region. In general, the smallest part of the industrial activity in the production of processing industry is due to their specificity, which is usually in the presence of significant raw material and energy costs in the cost of products of the processing industry. The lowest share of vehicles in the production is peculiar to the production of chemicals and chemical products (10.92 per cent), while the highest is taken by textiles, clothing, leather and other materials (50.82 per cent). However, the share of highly efficient types of processing industries in the structure of the industrial sector of the economy of the Ukrainian regions is relatively small (<15 per cent). <br>The results of the conducted research confirmed the need for further restructuring of the industrial sector of the economy of the Ukrainian regions. Gradual optimization of the structure of domestic industry should take place simultaneously in four directions, that is, to cover all types of industrial activities and their subspecies. A key criterion for such an optimization is the increase in socioeconomic efficiency, which means improvement of the airborne security and its structure, in particular, increasing the share of gross operating profit, mixed income. As the implementation of state industrial policy takes place at the regional level, each oblast needs to form the specialized (in accordance with the needs and opportunities of its economy) strategic directions of industrial restructuring and to develop current programs for their practical implementation.
Authors and Affiliations
Svitlana O. Ishchuk, Lyubomyr Y. Sozanskyy
Keywords
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