Application of the methodology for determining the “growth poles” of the region’s industrial economy in the system of public administration

  • Released On
    Wednesday, 20 December 2017
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  • DOI
    http://dx.doi.org/10.21511/ppm.15(4).2017.07
  • Article Info
    Volume 15 2017, Issue #4, pp. 72-85
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The article deals with the topical issue of applying the theory of “growth poles” to the economic development of Ukraine. A variety of theoretical definitions of the “growth pole” concept existing in the world economic and scientific thought has been studied. The ways and issues of practical application of the theory of “growth poles” for the Ukrainian economy have been identified. It has been proved that the formation of “growth poles” in industry is the determination of priority locomotive branches of the region’s industrial economy. The possible mechanisms of their localization in the form of growth areas have been substantiated. The methodology for determining “growth areas” of the industrial region has been developed and applied to the industry of the Carpathian economic region. In order to identify regional economic growth areas, Ivano-Frankivsk, Lviv, Chernivtsi, and Zakarpattia regions have been analyzed, evaluated, and classified for the period 2011–2016: by the relative share of the industry in the total output produced in the region of interest; by the relative share of unprofitable businesses in the industry; by the level of profitability of industries (goods) and by the monetary value of the profit earned by industries. The procedure for classifying the branches has been put forward for the purpose of identifying economic growth areas by totality of leading businesses and by fiscal performance (size of tax payments) of industries. It has been proved that the advanced development of the region’s industrial economy is possible as a result of intensifying the areas of the growth poles, with the priority innovative and investment projects for the development of the locomotive regional branches serving as the principal growth areas of the regional economy.

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    • Figure 1. Growth areas of the Carpathian economic region determined by the highest performance of the industrial sales volumes by business profile for 2016
    • Table 1. Growth areas of the Carpathian economic region are identified as having the highest industrial growth rates in 2013–2016
    • Table 2. Growth areas of the Carpathian economic region are identified as having the highest performance in terms of relative share of the industrial sales volumes (goods, services) by business profile, percent
    • Table 3. Growth areas of the Carpathian economic region determined from the number of profitable industries for 2016
    • Table 4. Growth areas of the Carpathian economic region determined from the performance of the total industrial output (goods and services) by level of industry profitability for 2016