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Industrial development in decentralized conditions: experience of leading industrial countries and conclusions for Ukraine

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  • I. Shovkun

Abstract

The article deals with the issues of industrial development in the conditions of decentralization of power and economic authorities of the state, which has been launched in Ukraine. Since the problem of the deindustrialization of the national economy remains very acute, this study presents the tools and instruments to address it, which has a policy of decentralization in its arsenal. The purpose of this work is to reveal the content of decentralization, generalize the ap-proaches to ensuring economic growth and increasing public welfare on the basis of regional industrial development, as well as on the substantiation of the feasibility of their use in Ukraine. The author highlights various essential aspects of decentralization and reveals the nature of its influence on the investment climate. Generalized the approaches to decentralization of state powers and finding effective forms of regional socio-economic development on an industrial basis, on the examples of countries-leaders in the world industrial-technological sphere. Justified the expediency of deepening decentralization and industrial development in order to strengthen the economic capacity of Ukrainian regions. The author constructs various econometric models to show the presence of a long-term statistically significant influence of industrial business and budget decentralization on the welfare of national population (2001-2016). A cluster analysis was carried out that confirmed the existence of the impact of fiscal decentralization and the development of production business (including industrial and agricultural) on the welfare in the country's aggregate regions. Also, it allowed to determine the priority of the processing industry in comparison with other types of production in ensuring the prosperity of the regional population. It is shown that the key to improving the condition of regional economy should be the development of a new industrial sector based on the technologies of the Industry 4.0 in line with the strategy of development of the country's industrial complex.

Suggested Citation

  • I. Shovkun, 2018. "Industrial development in decentralized conditions: experience of leading industrial countries and conclusions for Ukraine," Economy and Forecasting, Valeriy Heyets, issue 4, pages 38-64.
    • Handle: RePEc:eip:journl:y:2018:i:4:p:38-64
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    File URL: http://eip.org.ua/docs/EP_18_4_38_uk.pdf
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    References listed on IDEAS

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    Cited by:

    1. I. Shovkun, 2019. "Investment climate as a factor of industrial development in Ukraine," Economy and Forecasting, Valeriy Heyets, issue 4, pages 70-103.

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