| Summary: | One of the important problems in the formation of local budgets is the provision of balanced socio-economic development of the regions and the formation of inter-budgetary relations, with the aim of increasing the level of financial self-sufficiency by increasing fiscal decentralization.
In the absence of a financial resource, the problem of optimal redistribution of powers and budget funds between central and local authorities and local self-government requires a detailed analysis in the context of increasing the efficiency of the budget system.
In today's conditions, regions are becoming subjects of competition, which differently use their potential. Depending on the effectiveness of this use, they have a different ability to discover, use and maintain competitive advantage. All this leads to the need to develop systems for assessing, analyzing and managing the competitiveness of the regions on the one hand, and actualizing the problems of identifying key factors for increasing competitiveness, in the face of limited competitive resources, on the other hand.
Despite the acute practical relevance of the problems outlined, researching the competitiveness of the regions is a relatively new subject of study. This is due to the fact that in our country before the beginning of the liberalization processes, the region did not act as an independent economic entity, but was analyzed mainly from the resource and production side (definition of indicators of capital efficiency, etc.). During the reform process, the investment situation in the regions began to be studied, based primarily on foreign, and then domestic, methods for comparative analysis of investment attractiveness of the regions.
The object of research is the organizational-economic relations between the subjects of the socio-economic system of the region, in the process of forming its competitiveness.
The subject of the research is the factors that influence the increase of investment attractiveness of the region.
The territory of Ukraine is heterogeneous in terms of natural conditions and resources, population and composition of population, historical and geographical conditions of development, level and structure of economic development. All this is a prerequisite for its division into economic (or socio-economic) areas.
Specialization of districts is formed under the influence of various factors: natural (natural conditions and resources), social (population and economy needs, quantity and quality of labor, economic and financial potential, scientific and technical base), features of geographical location and historical development of the territory.
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