Modeling of state socio-economic systems in the countries of the European region

• Main Authors: Maryna Hrysenko, Olena Pryiatelchuk, Liudmila Shvorak
• Format: Article
• Language: English
• Published: LLC "CPC "Business Perspectives" 2019-09-01
• Series: Problems and Perspectives in Management
• Subjects: clustering; economy; model; regression; socialization; wealth
• Online Access: https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/12543/PPM_2019_03_Hrysenko.pdf

Recent global economic and social challenges confirm the existence of a number of systemic problems in socio-economic relations. Thus, the spread of the concept of sustainable development, which combines social, environmental and economic aspects, became a characteristic feature of the global development trend in recent decades. Highly developed world countries are currently implementing the principles of social economy (a special state management model for socio-economic development) in their policies with the aim to overcome abovementioned challenges and to reach the millennium development goals. The implementation of these principles, realized by the state management in these countries during the last decades, enables us to evaluate the available results and highlight the characteristics of individual national business models of social economy. The study of the most important social and economic global indicators by means of modeling, clustering and regression analysis made it possible not only to emphasize the most important indicators characterizing socio-economic development, but also, taking into account the establishment of interrelationships between social and economic parameters, to single out separate groups of countries (exclusively the European region has been selected for the research) united by common principles and methods of social and economic policy and its implementation outcomes. The obtained results allow us to predict further trends of socio-economic development of separate groups of countries taking into account the available material and technical resources, the situation on the labor market and the level of competitiveness of national labor resources, the features of the functioning of the monetary and tax systems, etc. Given the results of clustering, it was possible to identify both specific models for socio-economic development specific to certain groups and their inherent tendencies of functioning. Besides, a set of specific methods and mechanisms of government control which are common and the best suitable for these systems is determined.