REGIONAL INEQUALITY IN UKRAINE: FROM REGIONAL CLUBS TO THE MONOCENTER
DOI:
https://doi.org/10.34132/pard2020.10.03Keywords:
regional inequality in Ukraine, economic growth of regions, regional policyAbstract
Regional inequality is observed in the economies of almost all countries. This is one of the factors on which economic growth largely depends. Regional inequality or internal regional disparities can theoretically affect both economic growth and create obstacles to further development. The nature of the impact of regional inequality depends on the level of economic development of the country, which, in turn, is due to several socio-economic, political, and cultural-historical factors. This is to some extent unique to each country and, in any case, it should be considered when formulating economic policy so that it brings positive results. Ukraine has undergone significant changes due to a number of political crises, the proclamation of decentralization reform, the military conflict in the East and the occupation of Crimea. This could not but affect regional disparities. The study showed that regional inequality in Ukraine has a negative impact on economic growth. In addition, its character has changed significantly: from club groups (western, central, eastern, and southern groups of regions around the peripheral agglomeration centers), to the belts around the capital as a monocenter. This was due to the centrifugal movement of capital and labor migration as a result of the loss of institutional power by peripheral centers, the possibility of obtaining rent in a monocenter, proclaimed fiscal decentralization and imperfect regional policies that do not significantly affect economic growth.
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