The impact of the industrial policy on regional development in Ukraine
Keywords:
industrial policy, complex approach, regional development
Abstract
The paper deals with the study of the role of industrial policy on regional development, and aims to formulate the basic measures for future structural adjustments in Ukraine. Theoretical analysis of various approaches confirms market imperfection and proves the necessity of further empirical research in the field of assessment of the effectiveness of industrial policy. The use of a complex approach, bounded rationality and socio-economic dynamics provides a transdisciplinary view on a broad range of industrial policy considerations.
The progress in reforming process in the regions depends on the success of industrial policy providing different measures of support (including protection and production subsidies) across industries to see whether supported industries exhibit faster growth. Studies on economic growth and trade policies confirm the existence of a strong correlation between growth rate of trade and regions’ economic performance.
The analysis of two groups of factors – general and specific sources of the growth of transition economy – is directed on estimation of the effects of regional industrial policy in Ukraine. The first group of indices includes industrial output, fixed capital accumulation, human capital accumulation, economically active population, growth of R&D expenditures, macroeconomic stability, monetary indices, foreign trade, and foreign direct investments. The aggregate transition specific factors combine the indicators of success of reforms, including labour productivity, capital intensity, technological change, regional differences. The regional imbalance assessment is determined by the gross regional product per capita, regional employment, and expenditures on education.Downloads
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References
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Clemens, Michael A. and Jeffrey G. Williamson. "Why Did The Tariff-Growth Correlation Change After 1950?," // Journal of Economic Growth. – 2004. – v9(1,Mar). – pp. 5-46.
Saha, D. From heavy to light: structural change in Ukraine’s industry / Newsletter // The German Advisory Group. – 2015. – Issue No. 81, July.
Rodrik, D. The past, present, and future of economic growth, global citizen foundation // Working Paper 1. – June 2013. – [Electronic resource]. – Accessed mode : http://www.sss.ias.edu/files/pdfs/Rodrik/Research/GCF_Rodrik‐working‐paper‐1_‐ 6‐24‐13.pdf
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Robinson, J.A. Industrial policy and development: a Political Economy perspective. // Harvard University Department of Government and IQSS. – May, 2009. – p. 15.
UNIDO. The Role of industrial development in the achievement of the millennium development goals / Proceedings of the industrial development forum and associated round table // Compendium Edition. – Vienna. – 1-3 December 2003. – 466 p.
Amann, J.M., Cooper, J.M. & Davies R.W. The technological level of Soviet industry // Yale University Press, New Haven. – 1982. – p.59.
Myant, M., Drahokoupil, J. Transition economies. Political economy in Russia, Eastern Europe, and Central Asia // John Willy & Sons, Inc. – 2011. – p.143.
Saha, D., Kravchuk, V. The industrial sector of Ukraine: trends, challenge and policy options. Policy Briefing. – PB//05//2015.
The World Bank. Global Economic Prospects. Divergences and Risks. – 2016. – [Electronic resource]. – Accessed mode : http://www.worldbank.org/en/publication/global-economic-prospects
Doing Business. Measuring Business Regulations. World Bank Group. – 2016. – [Electronic resource]. – Accessed mode : http://www.doingbusiness.org/data/exploreeconomies/ukraine
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OECD (2011). Competitiveness and private sector development: Ukraine 2011. Sector competitiveness strategy.
The World Bank (2016). Global Economic Prospects. Divergences and Risks. – [Electronic resource]. – Accessed mode : http://www.worldbank.org/en/publication/global-economic-prospects
Published
2017-03-01
How to Cite
Nosova, O. (2017). The impact of the industrial policy on regional development in Ukraine. Bulletin of V. N. Karazin Kharkiv National University Economic Series, (91), 7-17. Retrieved from https://periodicals.karazin.ua/economy/article/view/8037
Section
Economic theory
