Formation of components of economic development of the country and its regions within the framework of decentralization

Abstract

The reform of economics’ decentralization caused the need to interpret differently the role and importance of regions in the structure of the economic system. The regional economy, along with the national economy, becomes an equal participant in economic activity both on the domestic and foreign markets. The purpose of the article is to study the peculiarities and formation of components of economic development of Ukraine and its regions in the process of decentralization of economic power, revealing its tendencies and contradictions, as well as ways of their overcoming. Methodology. The article uses general scientific and special methods: generalization, systematization, economic and statistical analysis, and modelling. This allowed us to study the peculiarities of the economic development of Ukraine and its regions in the process of decentralization, to identify its tendencies and contradictions, as well as to justify ways to overcome them. Results. The analysis of components of economic development in a regional context provides an opportunity to identify the main trends and prospects for the economic development of the country. Among the components of economic development, the main role is performed by the economic component since it determines the main trends of the economy of the country and regions. There are offered qualitative and quantitative components’ parameters that provide sustainable economic development in conditions of uncertainty. Practical meaning. The implementation of these results will overcome the disproportion of regional economic development in Ukraine. Equalization of the regional economic development involves the creation of a favourable investment environment in the regions, as the current trends of regional development lead to the fact that regions and other territorial entities become independent gamblers near the state in the global economic space. Value/оriginality. The article analyses the factors and consequences of the decentralization of the economy. Unlike the existing approaches, this makes it possible to more systematically present the results of economic development at the present stage.