№ 1/2018

Fìnansi Ukr. 2018 (1): 47–61

FINANCIAL AND ECONOMIC REGULATION

LUNINA Inna ¹, BULANA Oleksandra

¹Institute for Economics and Forecasting of NAS of Ukraine
OrcID ID : https://orcid.org/0000-0003-3812-4802

The state fund for regional development in the context of european integration processes

The State Fund for Regional Development is an important tool of Ukraine's regional policy and one of the ways of implementation of the Regional Development Strategy for the period up to 2020. According to the author’s estimation, economic disproportions between regions in 2011-2015 were unchanged despite the existence of the Fund. The aim of the article is to investigate the Fund’s activity in the context of Ukrainian regional policy goals and develop the ways to increase the Fund’s effectiveness within EU integration efforts. The article studies the key issues of the allocation of the Fund's resources in the spheres of project implementation. The authors found that although the financial resources of the Fund are mainly directed to the implementation of the projects of regional and local authorities to improve the access of the population to basic social, communal and other services, financial support for investment projects of economic entities, the implementation of which should ensure the development of regional economy and reduce inter-regional imbalances, is practically absent. As a result of the generalization of the European practice of state support for regional development, it is established that it is aimed at enhancing the internal factors of economic growth in the regions, in particular by co-financing investment projects of business entities, supporting clusters of enterprises and scientific institutions in high-tech sectors of the economy, financing programs for job creation in the least developed regions. The authors justify the need to increase the role of the State Fund for Regional Development of Ukraine in strengthening the competitiveness and balanced development of the region's economy by providing financial aid to the enterprises from the least developed regions. It is proved that in order to solve the strategic tasks of Ukraine's regional policy it is necessary to increase the expenditures of the Fund up to 0.22-0.24% of GDP for the additional co-financing of investment projects in the regions whose development requires state support.

Keywords:The State Fund for Regional Development, regional policy, interregional disproportions, investment projects, state aid

JEL: R00

Lunina I. . The state fund for regional development in the context of european integration processes / I. . Lunina, O. . BULANA // Фінанси України. - 2018. - № 1. - C. 47-61.

Article original in Ukrainian (pp. 47 - 61)

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