Assessing the Relationship Between Financial Imbalances and Endogenous Regional Economic Development of Ukraine

Abstract

The article deals with the methods of evaluating the effectiveness of financial instruments in stimulating regional development. The correlation between financial imbalances and endogenously oriented regional development was evaluated using correlation-regression analysis. The main design indicators for identifying the link between financial imbalances and endogenously oriented regional development are identified: gross regional product; intergovernmental transfers; local budget revenues (tax revenues, non-tax revenues, other revenues) of Ukraine. A correlation matrix was constructed to relate the main indicators of financial imbalances and endogenous-oriented development using the correlation coefficient. The dynamics of capital investments and GRP of Ukraine and the share of capital investments in GRP of Ukraine for the years 2013-2017 are considered. The investment attractiveness of the regions of Ukraine was estimated using the index of investment attractiveness of the regions of Ukraine in 2013-2017. The matrix for revealing the connection between capital investments, gross regional product and volume ofselling products (goods, services) of economic entities of endogenous-oriented development of Ukraine is constructed. It has been investigated that there are several regions that are potentially attractive to investors, namely: Volyn, Donetsk, Chernivtsi, Sumy regions, which are among the leaders and show increasing competition among themselves. It has been determined that capital investment is the most important factor in capital recovery.