Functional Features of the Structural Modernization of the Regional Economy in Ukraine

• Main Author: Shashyna Maryna V.
• Format: Article
• Language: English
• Published: PH "INZHEK" 2018-12-01
• Series: Problemi Ekonomiki
• Subjects: structural changes; modernization; transformational changes; economic growth; regional economy
• Online Access: http://www.problecon.com/export_pdf/problems-of-economy-2018-4_0-pages-120_126.pdf

The aim of the article is to systematize the functional features of the structural modernization of the regional economy in Ukraine, highlight issues and reasons for the lack of transformations and possibility for implementing transformational changes. By analyzing, systematizing, and summarizing relevant scientific works of a number of scientists, the essence and role of structural modernization in economic growth are considered. As a result of the study, the main problems of the structural modernization in Ukraine are revealed. It is established that the transformational changes in the regional economy took place irregularly, mainly by replacing the activity of some enterprises by others due to the insufficient level of development of the institutional environment and institutions as well as political, legal, and economic instability. It is found that the functional features of the regional economy are, first of all, their orientation to certain types of economic activity: primarily, industry and agriculture, to a lesser extent — construction and trade. That is why regions with a lower level of development of the industrial and agricultural sectors should perform the functions of providing human resources and human capital to stimulate the development of innovation and the formation of an innovative economy. The analysis of innovation activity has allowed to establish that the innovation expenditures, which are mainly undertaken due to the self-financing of development of enterprises, are not sufficient for the full modernization of the regional economy. It is determined that the main directions of the modernization should be development of human capital and innovative technologies. It is substantiated that the priority sectors for the implementation of structural reforms should be industry and agriculture. Prospects for further research in this direction are to identify key activities within the framework of structural modernization of the industry and the agricultural sector in Ukraine.