Economic development management in a water-capacious economy

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The world tendencies of spatial development, namely the availability of limited resources (primarily water) and the growth of the world’s food needs focus on the resource specialization of the region. On this basis, the purpose of the article is to study the impact of the water-capacious economy on the economic development of the country and its regions. The study used the traditional and special methods, including: historical and logical method – to analyze the functioning of regional socio-economic systems under limited water resources; and system analysis methods – to evaluate the impact of the water-capacious economy on the economic development of the country and its regions. The research results have important implications for the management of the territories. The authors show that the production specialization of the regions of Ukraine on the export/import of water-capacious products is not determined by their water supply. They also suggest that stimulating the region’s water-efficient activity should lead to a minimization of the water capacity of gross regional product and the reproduction of water capital, taking into account the water security of the regions. The authors also show that the water resources of the country and its regions and the natural water potential of the territories in the current situation become significant restriction to the economic development of territories, which allows to state the need to change the approaches to the regulation of regional development based on limited water resources.

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    • Figure 1. Export-import of virtual water and its characteristic for Ukraine
    • Figure 2. Water return of GRP in 2017, UAH per 1 m3
    • Figure 3. Water capacity of GRP in 2017, ths. m3 per 1 UAH
    • Figure 4. Total water consumption and drainage in 2017, mln m3
    • Figure 5. Average calculated water capacity of GDP of influential countries, which are the main world exporters of grain for the period 1975–2015, ths m3 per 1 USD
    • Table 1. Use of fresh water by regions of Ukraine, including freshwater and seawater, million m3
    • Table 2. Specific weight of water use according to directions in 2017, %
    • Table 3. Water capacity and water return of GRP in 2017
    • Table 4. Average calculated water capacity of GDP of the countries with the largest water resources in the world and those importing virtual water for the period 1975–2015, ths m3 per 1 USD
    • Table 5. Water supply index for influential countries
    • Table 6. Water supply index for individual regions of Ukraine