Cluster Model of Forestry Development in the Region

• Main Author: Tsalan Myroslava
• Format: Article
• Language: English
• Published: Mykolayiv National Agrarian University 2019-03-01
• Series: Modern Economics
• Subjects: cluster; cluster model; forestry; region; regional economy
• Online Access: https://modecon.mnau.edu.ua/en/?smd_process_download=1&download_id=10789

Introduction. The article considers the necessity of expanding the cooperative relations of forestry farms in order to ensure their competitive development. One of the ways of improving the forestry development in the region is to create a cluster model. Purpose. The purpose of the article is to consider the prerequisites and potential of the creation of a forestry cluster in the Transcarpathian region. Results. The emphasis is placed on the fact that the cluster approach of economic development has been already developed in the EU. The advantages of working in the cluster as an important mechanism for increasing the competitiveness of regions, industries and enterprises are noted. The cluster approach in forestry involves rational usage of forest resources, activation of wood processing, the development of tourism, the use of secondary raw materials, production of energy from waste wood processing, provides the opportunity to create new jobs, increase budget revenues and increase local population’s incomes. The preconditions for the development of a forestry cluster in the Transcarpathian region are outlined. The SWOT analysis of the creation, development, stages of forestry cluster formation in the Transcarpathian region was proposed. The division of the tasks of participants in the cluster model of forestry development in the Transcarpathian region was carried out. The cluster of forestry in the Transcarpathian region should become a platform for the interaction between business entities, regional authorities, the representatives of education, science and the public. Cluster policy should be implemented in conjunction with other measures to improve forest management. Conclusions. In the long run, it is important to combine the strategy of regional development, cluster development of forestry with the community development plan, so that they become interconnected and complementary. The cluster is a flexible and dynamic structure, the organization of which must meet the requirements of the present and constantly improve. In the long term, it is necessary to diversify the activities of the cluster, including through cooperation with foreign partners.