The Problems of Economy

17-23

Authors: Grafska O. I.

Global trends in and challenges for the socio-economic development, globalization, integration and service processes are characterized by high dynamism of their effect on all spheres of economic activity. Therefore, without a preventive response to external influences, effective development of the economic system of countries will be hindered. This is especially true for the tourism and recreation sector, which is international in nature and interconnected with global megatrends and economic development cycles of society. The aim of the study is to identify contemporary challenges for and megatrends in the development of the tourism and recreation sphere as determinants of the formation and use of the tourism potential of Ukraine. It is established that the need to focus on the main global trends in and challenges for the development of the tourism and recreation sector is especially important today to justify a balanced policy and mechanisms for surmounting the crisis in the domestic tourism sector as well as to identify additional opportunities and prerequisites for building the potential of the tourism and recreation sector in territorial communities and national socio-economic space as a whole. The study reveals the effect of urbanization, as a megatrend in socio-economic development, on the tourist and recreation sphere, namely, that it leads to excessive tourism, i.e., an increase in tourist flows. It is proved that today new information technologies are widely used in international tourism, which is an example for applying such technologies in domestic practice. The effect of virtual networks as modern global trends in the international tourism services market is characterized. The influence of COVID-19 processes on the tourism industry is investigated, and the main problems that the tourism industry is facing today are identified. The ways for overcoming the current crisis are proposed. It is found that the coronavirus pandemic has an impact not only on the tourism and recreation sector but also on the global economy as a whole.

30-38

Authors: Maksymenko A. O.

The article deals with studying the transformations in consumer-driven value chains, using the example of clothing and footwear manufacturers. It is noted that the production of ready-made clothes in the value chain includes several stages: pre-production, or production of fabrics and components (Original Equipment Manufacturer, or OEM); fabrication of clothes (Cut, Make and Trim, or CMT); design (Original Design Manufacturer, or ODM); supply, marketing and sales (Original Brand Manufacturer, or OBM). Each stage differs in terms of technological level and added value. The practices of Turkey, Pakistan, and Albania concerning the integration of textile enterprises, manufacturers of ready-made clothes and footwear into global value chains are analyzed. It is concluded that the entry into global value chains begins at the lowest stage (drafting, assemblage, fabrication). The process of integration into this chain is possible if the company is competitive in terms of delivery time, flexibility (the ability to produce small batches, quickly respond to market changes), and productivity. The need for state support (industry development strategy, formation of clusters and industrial parks, attraction of foreign direct investment) and participation in various international trade transactions is noted. Participating in the CMT stage in the short term is positive as regards offering jobs, and in the long term it can encourage enterprises to develop and sell final products in the domestic market. Market entry barriers are increasing with each next stage in the value chain. Moving up the stages in the value chain requires investing in technologies and human resources, establishing cooperation with educational and research institutions, building ties with enterprises of the industry they are engaged in and related ones.

55-62

Authors: Sytnik N. I.

The article deals with analyzing the practices of state support for the startup ecosystem in countries of Central and Eastern Europe using the example of Poland, Estonia, Belarus, and Hungary. These countries have indicators of startup ecosystem development similar to those of Ukraine. However, they are characterized by significant government participation in the formation of the national startup sector. In recent years, Ukraine has made progress in developing its startup ecosystem, but the role of the state in this process remains minimal. The aim of the article is to study the level of development of national start-up ecosystems in countries of Central and Eastern Europe as well as instruments of state support for ecosystems in this region, which can be used by Ukraine to stimulate the development of its national start-up industry. The article provides a comparative analysis of Ukraine with other countries of Eastern Europe according to rankings of startup ecosystems, competitiveness and innovativeness of the economy, business conditions, and level of education. It is established that Ukraine has high positions in the rankings of start-up ecosystems. However, it lags behind other countries of the region in rankings of national economies. In most countries of Eastern Europe, the state is an important agent of the startup ecosystem. Using the examples of Estonia, Poland, Hungary, and Belarus, the instruments of state stimulation of start-ups are studied. They are developed, as a rule, as part of strategic programs for digitalization of the country, development of innovative entrepreneurship and high-tech industries. The article identifies the priority areas of state support for start-up ecosystems in these countries, namely, legislative initiatives aimed at liberalization of the conditions of activities of new entrepreneurial structures; public investment; development of human resources; creation of competence centers; media and event management.

71-81

Authors: Barna S. S., Shpak Y. O.

The factors affecting the innovative development of energy service enterprises are considered. The aim of the study is to establish the relationship between the energy policy, willingness of the population to use measures to improve energy efficiency and innovative potential of energy service companies. The review of scientific papers on energy security and environmental safety shows the relevance of developing mechanisms for reforming the energy market through considering the level of development of innovations and their management at the energy company level. The objects of the study are 5 energy companies in Western Ukraine (Ternopiloblenergo, Lvivoblenergo; Chernivtsioblenergo; Rivneoblenergo; Volynoblenergo), which are the main energy providers in the region and, accordingly, reflect the general trends in the formation of the energy market. The methodological tools of the study are the focus group method, personal interviews, variation of parameters, statistical observation, induction, deduction, generalization. The article presents external and internal factors affecting innovative development of energy enterprises. The aspects of the regulatory policy in the energy market are considered. Risks for the development of the energy market and provision of quality energy services are identified. A low level of innovative development of personnel in the energy sector is noted. The importance of enhancing the cooperation of energy enterprises with the united territorial communities with the aim of implementing the approved legal norms for reforming the energy market in Ukraine is taken into account. Among the measures to strengthen the motivation of the population to use energy saving technologies, intensification of activities of media and other information providers is noted. The results of the study may be useful for managers of energy companies, the heads of the united territorial communities and associations of co-owners of apartment buildings, scientists working on projects to improve energy conservation.

91-103

Authors: Dankevych V. Y., Dankevych Y. M., Sheheda O. V.

The article outlines theoretical approaches to the study of the development of land relations and provides the substantiation of the methodological toolkit for the study. A set of legal and economic relations that arise in the course of turnover of land is investigated, namely, transactions of purchase and sale, inheritance, exchange, gift, pledge, lease and emphyteusis. The structure of land transactions and changes in their number over time by designated purpose are analyzed. The use of the Ward’s and k-means methods made it possible to divide regions of Ukraine into three cluster groups by level of development of land governance as well as to identify the existing problems. The European practice of the development of land relations and the formation of the agricultural land market is considered. The practice of the EU Member States has proved that a developed and well-institutionalized land market is a necessary prerequisite for ensuring food security of a country and developing its export potential. The analytical review and findings of the study of the features characterizing the evolution of land relations in Bulgaria, Estonia, Latvia, Lithuania, Poland, and Romania made it possible to identify the main elements of the formation of a full-fledged agricultural land market, namely: cadastre, specialized land institutions, market-based land valuation mechanism and state regulation. It is established that effective use of land resources in Ukraine is possible only provided that the land reform is completed and a full-fledged agricultural land market is formed. Only under these conditions the use of the available agricultural land can be intensified, and the food and economic security of the state can be ensured.

111-118

Authors: Zinchuk T. O., Patynska-Popeta M. M.

The purpose of the article is to investigate and describe the main trends in business development in rural areas in the context of Ukraine’s European integration prospects; identify the conditions, directions, and tools for setting up a rural business. Modern problems of Ukraine’s rural areas are characterized. It is proved that increasing the efficiency of the agricultural sector is a key factor for strengthening the economic potential of territorial communities. Main positive trends in the export of agricultural products of Ukraine, their impact on business development in rural areas are analyzed. The priority measures for innovative development of the agri-food sector are highlighted. Attention is focused on elaboration of alternative schemes for organizing rural development, which ensures diversification of employment and sources of income. The types of non-agricultural employment in rural areas are presented. The conditions, promising areas, tools for creating and developing business in rural areas are determined with regard to European practices. The need for stimulating local initiatives to unleash the potential of agricultural production and business, in order to fully use favorable for Ukraine conditions in the world agricultural market, is substantiated. It is argued that positive changes in the development of rural areas of Ukraine can be achieved by investing in innovation, support for business, human capital. Using the example of activities of united territorial communities (UTC) of Zhytomyr region, a system of measures for business development in rural areas is presented.

130-143

Authors: Kyzym M. O., Salashenko T. I.

The article presents theoretical approaches to formation of a competitive electricity market: centralized and decentralized ones, making a choice between which depends on the degree of balance of physical and commercial electricity flows in the energy system, which determines the features of market modeling. Regardless of the approach, the modeling of a competitive electricity market is based on justifying its 7 key determinants including geographical delimitation, dispatch method, market infrastructure, time scaling, forms of trade, pricing methods, and product diversification. There is conflicting experience in the world concerning a competitive electricity market and no universal model of it. The analyzed models of the EU, USA and Australia show their significant differences. The decentralized approach was applied in the EU and a four-segment model of a competitive electricity market with zonal delimitation of energy systems was created. In the USA and Australia, the centralized approach with nodal delimitation of energy systems was used, and two- and one-segment models were created, respectively. The models of a competitive electricity market presented in the article also differ in dispatch methods, forms of trade, and products. Their only common characteristic is the orientation towards marginal pricing, although in each of the models it has specific features. Ukraine has formed a quasi-competitive electricity market using the European model. The correction of flaws of this model should be made with regard to the characteristics of the national energy system and the successful experience in liberalizing the electricity markets of other countries of the world, not just that of the EU.

153-159

Authors: Obelets T. V.

The aim of this work is to deepen the understanding of the impact of modern technological progress on the nature of transformation of the labor market, changes in the role of qualification level of the employed population, and determination of the skills and competences of employees necessary for forming competitiveness of labor resources and overcoming modern challenges in the labor market. The article presents an assessment of the potential of intra-industry polarization by individual types of economic activity, with consideration for the use of information and communication technologies (ICT) at enterprises. It is noted that information and communication technologies replace certain tasks performed by humans. Consequently, the share of employed among not only highly qualified and paid experts but low-skilled service personnel related to this sphere will increase as well. An assessment of the share of employees who used ICT in enterprises is performed. It is determined that, in Ukraine, the maximum number of employees who used ICT in their professional activities were employed in the fields of information technologies, telecommunications, as well as scientific and technical activities. The close to the Ukrainian average value share of employees using ICT in enterprises is observed in industry. The minimal use of ICT was in the field of transport, warehousing, postal and courier activities and water supply. The results obtained have allowed to single out a number of enterprises with the maximum potential for applying the latest technologies and reformatting the structure of the employed population. The role of skills and competences necessary for forming competitiveness of labor resources and overcoming various challenges in the labor market is determined. The core skills and competences for effective employment are defined with the use of the content-based model O*NET and proposed in the study. It is noted that promoting the development of non-routine skills is the most relevant strategy for the formation of labor competitiveness under modern conditions, especially as a result of the impulse created by the COVID-19 pandemic.

166-174

Authors: Yastremskii O. I., Kulyk V. V.

The aim of the article is to develop a methodology and study the results of calculating the load of direct and indirect emissions on final demand based on the data from the aggregated costs-emissions scheme of Ukraine. The article examines the total load of carbon dioxide, nitric oxide and methane emissions on the end use of three groups of economic activities of the Ukrainian economy in 2017. The largest emitter is the secondary sector (industry), whose share in the total load of emissions is about 50 % for carbon dioxide, nitric oxide, and methane. The tertiary sector (the services sector) is the second largest emitter. During 2013–2017, there observed a downward trend in the load of emissions on the final demand of the studied sectors, especially for 2013–2014. A scenario “reduction in the total economic cost of production ? change in emissions” is developed and implemented. It characterizes the elasticity of the release of all emissions to the total economic cost of production – a decrease in the total cost by 1 % leads to a relative decrease in the release of all emissions by 1.41 %, 1.62 %, 1.71 %. Prospects for further research are the expansion of the calculation scheme to 10 economic activities, 19 economic activities, 42 economic activities, 10 types of emissions; application of uniform methodological approaches and single arrays for comparative environmental and economic research; elaboration of a costs-emissions scheme with additional technologies “processing of emissions” and quadrants “interbranch flows of economic activities for processing emissions”, “additional release of emissions in processing emissions” for Ukraine.

182-189

Authors: Babets I. G., Ruda O. I.

The article analyzes the main trends in the structural changes in capital investment and foreign direct investment in regions of Western Ukraine in 2013–2018. Using regression analysis of the panel data, the authors assess the dependence of indicators characterizing the structure of investment in the economy and the quality of life in cities of regional significance of Volyn, Transcarpathian, Ivano-Frankivsk, Lviv, Rivne, Ternopil, Chernivtsi regions for the period of 2013–2018. The study reveals a significant direct relationship between the average annual number of full-time employees and the volume of foreign direct investment per capita, the share of investment in housing construction and environmental protection in the total volume of capital investment in the cities of regional significance. The direct effect of the changes in the volume of capital investment per 1000 people and the share of investment in housing construction in the structure of capital investment on the level of housing provision for the population in cities of regional significance is confirmed. The direct dependence between improvement of the provision of hot water supply and sewerage services for the population in cities of regional importance and increase in foreign direct investment, capital investment and investment in environmental protection is determined. It is established that the changes in the share of investment in housing construction in the general structure of capital investment do not affect the provision of hot water supply and sewerage services for the population in view of modern features of individual construction. No connection is found between the level of air pollution, waste generation and indicators of structural changes in investment in cities of regional significance.

198-208

Authors: Dmytryshyn L. I., Zvarych O. I.

The aim of the article is the formation of a set of priorities of economic development as key factors of success of Ukraine’s regions and their further analysis. Based on the analysis of the relationship between the concept of economic development of regions and the level of their key success factors, it is established that the factors of economic development of regions provide the basis of the pyramid of key success factors and determine the competitive position of a region on a national or global scale.On the other hand, economic development of a region is ensured by a constant strengthening of the competitive position and increasing the competitive advantages of the existing industries and by creating new, highly efficient segments of the economy. In addition to regional key success factors, synthetic indicators, which allow assessing the competitive position of a region regardless of its level of development, are important.Therefore, for a spatial study of key success factors, a methodological approach to assessing the actual and potential levels of key success factors for a region as well as assessing the differentiation of regions by their level is proposed. A model of key success factors for regions of Ukraine in the long term is built. The implementation of the model implies classifying regions according to the criterion of using the existing and potential competitive advantages and, finally, assessing the level of economic development of a region.This describes the interdependence of the studied concepts: factors of economic development of the regions – competitiveness of the regions – economic development of the regions. A set of priorities of economic development of Ukraine’s regions are formed. Moreover, all of them – both traditional and modern – represent the regions in terms of rather innovative development than that of production or investment.The set contains the innovative, social and environmental components of economic development, which are characteristic of the approach of the new economy, and not production and technological ones, inherent in the production and investment approaches, respectively.

216-223

Authors: Olshanska O. V.

Higher education institutions are increasingly being transformed from establishments with traditional teaching and research functions to those playing a social role in ensuring sustainable regional development. The aim of the article is to substantiate the possibility of ensuring sustainable regional development based on socialization of higher education institutions. The study is aimed at expanding the understanding of traditional ways of ensuring sustainable regional development, taking into account the ability of higher education institutions to promote the dissemination of knowledge about sustainable development, maintain sustainable entrepreneurial ecosystems and generate management decisions that affect the achievement of sustainable regional development. The carried out assessment of the state of incorporation of the Sustainable Development Goals into strategic planning documents in Ukraine made it possible to justify five reasons for the need to reflect the Sustainable Development Goals in regional strategies. A conceptual scheme of the influence of higher education institutions on the subsystems of achieving sustainable regional development is proposed, changes in the indicators of sustainable development associated with universities are analyzed. The breaking down of the higher education institutions by region by indicators of the U-Multirank 2020 ranking in the dimension of regional engagement (bachelor graduates working in the region; master graduates working in the region; student internships in the region; regional joint publications; income from regional sources; regional publications with industrial partners). It is proved that the key to sustainable regional development and harmonization of the relationship “economy-society-nature” are specialists able to take into account all aspects of the economic, social and environmental development of the region. This made it possible to highlight the priorities for the further development of the social mission of higher educational institutions.

240-246

Authors: Horal L. T.

The aim of the article is to systematize and generalize the multifaceted nature of the concept “development security” of an industrial enterprise. The article indicates that, in view of a complex combination of technical and technological, information, resource, financial and economic, intellectual, and personnel functional components, each of which in a certain way affects activities of a particular industrial enterprise, it is necessary to consider the complex phenomenon of development security of an enterprise, which implies eliminating threats to its development. In studying the concept “development security” of an industrial enterprise, the complexity of its formation was determined. This is primarily due to the complexity of the components, namely, “development” and “security” of the functioning of enterprises. Each of these concepts should be considered in several aspects (and / or in the context of several scientific disciplines): philosophical, social, financial and economic and managerial one. It is noted that man is an open, complex evolving system. Under conditions of the formation of a human-centered economy accompanied by a crisis opportunities for gaining new experience arise. Based on these conclusions, a system for determining the priority of cause-and-effect relationships in the system for managing security development of an industrial enterprise is proposed. The use of the suggested priority of cause-and-effect relationships in the system for managing security development of an industrial enterprise will make it possible to determine the direction of using enterprise management mechanisms both at the strategic and tactical levels in solving current problems.

256-264

Authors: Krivtsova Т. О., Liadova Y. O.

The aim of the article is to justify the ways to improve accounting and auditing. In view of this, the authors analyze the influence of factors of the internal and external environment, which are conditioned by the current global financial crisis, on the development of the credit component of financial security of enterprises.Using the methods of generalization, internal and external factors influencing the development of the credit component of financial security of enterprises are identified. The degree of liquidity of the assets of individual enterprises and the possibility of using the credit component in their activities are analyzed based on the calculation of their creditworthiness, solvency, financial stability, and financial status (factors of the internal environment).Bu means of econometric modeling, it is found that the development of the credit component of financial security of the studied business entities is slowed down due to excessive growth in their current liabilities, compared to the relatively moderate rate of changes in the volume of their assets, as well as the limited possibilities for long-term borrowing and low return on assets.The regression analysis of the impact made by fluctuations of the exchange rate of the domesticcurrency against the US dollar and the euro (environmental factor) on the development of the credit component of financial security of the studied business entities revealed that this factor negatively affects both the volume of credit resources and the business entity as a whole.Under modern conditions of the global financial crisis,the practical implementation of the research results will improve quality and speed of making managerial decisions, which are based on accounting and audit data. In this regard, it makes sense to direct further research at identifying and eliminating the consequences of the global financial crisis of 2020 in activities of business entities.

274-280

Authors: Prokhorova V. V.

The aim of the article is the formation of a business model as a tool for improving the strategic positions of enterprises in competitive markets under modern turbulent conditions. Based on the results of the study, it is determined that at present, when new technologies are constantly appearing, consumer preferences are changing, new social trends are forming, the key factor ensuring success in competition is the correct choice of the business model of an enterprise. Successful innovative products are no longer a guarantee of success in the market. Thus, only comprehensive innovation activity that goes to the level of permanent monitoring of the adequacy of a business model to changing conditions, and designing it into an improved version is a determining factor for success in the competitive struggle. Fundamental changes — evolutionary and radical transformations — have shaped the economy and business environment in recent decades. Technologies, especially information and communication ones, have radically changed the requirements for building a successful business and managing it. Accordingly, revolutionary technologies require developing new business models as a tool for improving the strategic positions of enterprises in competitive markets. In today’s hyper-competitive environment, there is no ideal business model that can create sustainable competitive advantages. In the future, when changes will occur even faster, only the enterprises that will be able to use their full potential will succeed. The winners will be adaptive enterprises that can quickly respond to new challenges. The article presents a detailed description of the process of forming the essence of the concept “business model” and defines its structure; analyzes the characteristics of schools of thought that study business models; highlights the principles and objectives of the business model as an instrument for improving the strategic positions of enterprises in competitive markets.

288-294

Authors: Romashko O. M., Nemish Y. V.

The aim of the article is to justify and test a methodological approach to assessing the level of financial resources based on a summarizing rating indicator, using an example of an oil-producing enterprise, as well as to study the changes in the state of financial resources of Ukrnafta OJSC during 2016–2018. The article discusses several methodological approaches to assessing the financial state of an enterprise applying the method of ratios, without bringing them to a single indicator. These methodologies imply assessment of a significant number of indicators and need for their interpretation.However, as regards the simplicity of calculation and interpretation, a methodology for assessing financial resources proposed by R. K. Shurpenkova and T. V. Kalaitan is of interest.It involves express analysis of 5 key financial indicators characterizing liquidity, solvency and financial stability as well as determination of a synthetic rating indicator of financial resources. Based on the financial statements of Ukrnafta OJSC for the last 3 years, using this methodology, an assessment of the financial resources of the enterprise is carried out.The retrospective analysis of Ukrnafta OJSC allows to conclude that the company has an unsatisfactory financial state since the value of the rating indicator for assessing financial resources is less than 1. To improve the situation, the company should optimize the structure of current and non-current assets, attract additional funds from the owners and make timely settlements with creditors by using budgeting and drawing up a payment calendar, as well as reduce the amount of current liabilities by obtaining credit funds for a longer period of time.

303-311

Authors: Trushkina N. V., Rynkevych N. S.

At the present stage of enterprise functioning, problems of transforming organizational culture with the use of marketing tools are particularly relevant. The aim of the article is to substantiate and develop a marketing strategy for managing the development of organizational culture. To achieve this goal, there used the following general scientific research methods: analysis and synthesis, generalization, systematization, logical framework approach, expert survey. The article presents the results of the authors’ marketing research of Ukrainian enterprises functioning in the food, coal, construction industry and the services (transport, consulting, banking, household ones), education, science, government sectors, in order to identify the features of organizational culture. The relationship between marketing and development of organizational culture is proved. The content of the main tasks of marketing in the transformation of organizational culture is revealed. The logical framework of the interaction between management of the development of the culture and the marketing strategy of an enterprise is proposed. A marketing strategy for managing the development of organizational culture is elaborated. It presents a conceptual model of long-term processes of marketing activities that must be implemented to achieve the company’s long-term goals through introduction of self-development programs and continuous improvement of professional qualities of the personnel with the help of digital technologies. This strategy should be formed and implemented according to the following algorithm: risk level assessment; formation of a marketing strategy (analyzing the external and internal marketing environment, determining the prerequisites for the development of the strategy; identifying the strategic goals of the enterprise; establishing the level of subordination of strategies; integrating the strategy for managing the organizational culture development and marketing; elaborating strategic programs; making managerial decisions on the implementation of the strategy; justifying and forming a scenario approach); implementation of the strategy; analysis of the results obtained and control over the implementation of the marketing strategy; resource, organizational, economic, financial and information support for the implementation of the strategy. This will ensure the successful integration of the processes of personnel and marketing activities of an enterprise and effectively transform its culture.

325-330

Authors: Yakymchuk I. M.

The theoretical foundations of organizational and managerial innovation in increasing efficiency of manufacturing, practical business aspects of organizational and managerial innovation in enhancing business efficiency are studied. These issues were considered both by Ukrainian and foreign scientists. However, today, despite the multitude of works highlighting these issues, there are no comprehensive studies dealing with the generalization and systematization of existing supply chain models. Organizational and managerial innovations in increasing efficiency of logistics are considered using the example of a supply chain. It is proved that organizational and managerial innovations are continuous in time, starting from the initial one, which, after a situational analysis, goes through planning, programming, particular actions aimed at its implementation and making decisions for the future. Given the existing risks and the complexity of innovative solutions, specific approaches are proposed to increase efficiency of logistics using the example of a supply chain. Improving a supply chain with particular tools allows introducing market changes in the organization of the supply chain. Application of innovation in logistics requires quick decisions to address the issues of production, management and environmental impacts on logistics processes. It is found that a supply chain with the necessary attributes provides many benefits to companies that use its tools through outsourcing agreements. Considering the practice of European companies, it is proven that the introduction of logistics tools increases the company’s profitability after six months of their constant use and its participation in logistics outsourcing projects, contributes to the growth of the company’s market share, speeds up its penetration into new markets by expanding the geography of the functioning of logistics operators and banks – supply chain business partners.

338-346

Authors: Haidenko S. M., Svichko S. O.

The article discusses the theoretical aspects and prerequisites for the formation of entrepreneurship as an active factor affecting both the economic progress in general and development of regions. A new interpretation of the institutional approach in the context of using it under modern conditions of transformation of systems and methods of regional development management is proposed. A logical model of factors influencing the development of entrepreneurship is built, and a refinement concerning the use of the concept “object of observation” in economic research is made. The authors’ version of the content of the concepts “entrepreneurial climate” and “entrepreneurial environment” is provided, and the relationships in the responsible conceptual cluster are determined. Business environment is proposed to be considered as an aggregate of positive and negative factors which significantly affect performance of a business. The article describes basic characteristics of business environment, among which the investment climate, regulatory policy and readiness of society for innovative changes are of paramount importance. The development trend and effectiveness of regional management is provided not by the central bodies but by an integrated local mechanism, which is formed by coordinating the goals and interests of independent social organic structures within the framework of regional integrity and regional policy. A significant result of the study is the developed conceptual cluster, which is formed around the term “climate”. The relations between the characteristics of business climate and regional environment, which are attributed to the line of human factor, mentality and traditions, are established. “Climate”, “environment” are also interconnected through a system of barriers, tensions, and conflicts, together they act as assets of regional development. Based on the result obtained, it is concluded that scientific theory and scientific support (practical tools for transformation) are the dominant components of regional development, which can give a powerful impetus to the regional business sector.

356-364

Authors: Stoiko O. Y.

The aim of the article is to study the problems of developing fintech and banking in Ukraine and develop promising areas for their interaction. It is established that in the context of the introduction of financial and technological innovations, traditional approaches to the provision of banking services no longer meet the modern needs of consumers and the requirements for improving the efficiency of banking. The main advantages and disadvantages in activities of commercial banks and fintech companies are identified. The advancement of financial technologies has a positive effect on activities of domestic commercial banks, which enhance the quality of customer service, improve automated means, and increase the protection against cyberattacks and fraud.At the same time, traditional commercial banks can provide significant assistance to fintech companies in terms of expanding infrastructure, increasing capital, and enabling access to a well-developed client database. It is proved that the most effective strategy of relationships between commercial banks and fintech companies is not competing but using various mutually beneficial cooperation options. With the introduction of the latest technologies in Ukraine, a significant breakthrough was the launch of the first mobile bank – Monobank, which operates without physical branches and is able to carry out all basic banking operations.The analysis showed that the online service of Monobank in the second half of 2019 grew by an average of 100 thousand customers every month and also had a positive trend in all key performance indicators. The feasibility of the participation of commercial banks in promoting P2P and P2B electronic platforms is substantiated. It provides mutual benefits for both parties: for banks – avoiding liquidity and defaultrisks, and for electronic credit platforms – getting access to a significant amount of banking resources. A promising area of interaction between fintech and banking is the introduction of Open Banking, which will enable access of fintech providers to banking data and give possibility for creating new products and services.Another potential impetus for the implementation of innovative solutions may be applying BankID remote digital identification, which will make the domestic financial market more accessible and open for its participants, simplify the procedure for rendering services and provide conditions for creating innovative services and improving the existing ones. The important role of the National Bank in the development of financial technologies and mutual cooperation of commercial banks and fintech companies is highlighted. Further research will be aimed at an in-depth study of individual areas of cooperation between fintech and banking.

382-388

Authors: Bondarevska K. V.

The article outlines the author’s vision of the institutional support for social security in the labor market and its components, in particular, relevant institutions (state and local government bodies, institutions of state regulation of the labor market and social partnership, educational institutions, mediation institutions) and other institutions (legal and regulatory, financial, informational support, economic laws regulating labor market functioning, social rules and norms of behavior, traditions and values, corporate norms). Moreover, the main components of the mechanism of institutional support for social security in the labor market are identified. They include the influence of subjects of social security in the labor market on relevant objects, based on resource support and principles, using corresponding methods, tools and leverage. Features of the current state of the institutional support for the labor market are examined and its main problematic aspects, in particular, in the context of activities of the State Employment Service of Ukraine, are highlighted. The need to apply best practices is considered with regard to the formation of an active state policy in the labor market and the concept “flexicurity”, which is a combination of flexible and non-standard forms of employment with appropriate social protection of employees. Among the priority areas for improving institutional support for social security in the labor market, the author identifies the following: providing a legislative framework for social security and defining measures to ensure it; implementing social standards of developed European countries in domestic practice; bringing the legal framework for social security in the field of employment in accordance with international requirements, with consideration for domestic realities; improving the functional aspects of institutional support by redistributing the powers and functions of state bodies in the context of decentralization as well as taking into account the need to introduce innovations in the activities of relevant institutions.

397-406

Authors: Oganezova G. V.

The relevance of the topic is due to the absence in economic studies of specific algorithms for activating self-preservation that determines the health of a country’s population, and therefore, its human capital. The author sees the solution to this problem in institutionalization of self-preservation. The paper presents a methodological approach to the formation of the institution of self-preservation, which includes a theoretical analysis of scientific approaches to studying health and self-preservation, practical analysis and diagnosis of self-preservation of the country’s population, substantiation of the need for mechanisms for institutionalizing self-preservation and their development. The methodology for institutionalizing self-preservation is based on an institutional approach and the theory of health risk factors. Self-preservation is described as an individual’s obligations to preserve his/her health, which are manifested in actions aimed at achieving socio-economic well-being, allowing a healthy lifestyle, ensuring ecological parameters of everyday life, characterizing his/her participation in medical events. The analysis of self-preservation in Ukraine from the standpoint of the theory of health risk factors shows that an institutional trap – the institution of health-damaging behavior was formed in the country. For its transformation, a mechanism for institutionalizing self-preservation is proposed. The mechanism consists of regulatory, organizational, economic and information tools that coordinate the interaction of economic entities in such a way as to neutralize the negative impact of health risk factors and enhance their positive impact, which contributes to increased personal responsibility for health.

416-423

Authors: Sierova I. A.

The article considers the correctness of the construction of international indices and the possibility of their use in analytical practice. The interconnection of such concepts as: assessment of accuracy of source information – assessment of accumulation of errors during its processing – assessment of accuracy of quantitative estimates obtained based on analysis of main advantages and disadvantages of international indices, is tracked. The emphasis is made on scaling as a method that allows combining the general principles of mathematical analysis and specific methods of data collection. The expediency of selecting a method of data conversion during the transition from the ordinal scale to the interval one is determined, which is a necessary condition for the possible comparability of ranking positions in the presence of various research objectives and arrays of the data collected. The relationship between the methods of data classification as the basis of their primary systematization is considered. To determine the possibility of comparing international indices with regard to the general characteristics of a cluster and the changes within this cluster, the method of cross-clustering is used. The issues of the correctness of aggregate estimates are raised.There proved the erroneousness of revealing dynamic patterns at failing to meet the conditions when the quality of the research tools used is determined by their validity and reliability, and the quality of the results obtained is determined by the accuracy of measurements,. It is found that the stability of the socio-economic system should be confirmed by the statistical stability of the indicators that characterize this system. A scheme of relationships of requirements for data in the construction of international indices is proposed.