Financial factors of the region's competitiveness in the context of decentralization

Abstract

Increasing the competitiveness of the regions of Ukraine should be aimed at achieving the economic and social standards of the EU. The financial support of these indicators at the proper level contributes to the filling of local budgets. The development of local self-government in Ukraine is in the active stage of its reform. In such conditions, the progressive pace and direction of the reforms is ensured by decentralization. Optimizing the revenue and expenditure side of local budgets requires a separate study with the aim of providing scientific arguments for giving regions greater financial independence and responsibility. The integral analysis of regional competitiveness can serve as a guide for the socio-economic development of the region and the basis for developing a strategy for its development. Pridneprovsky region is much more attractive for investors of different countries as it ranks first among the regions of Ukraine in terms of the volumes of attracted foreign direct investments. An analysis of the structure of expenditures of local budgets shows the social orientation of budgetary policy. The relatively high share of social spending is positive for the society. In the context of decentralization, the financial resources of local authorities should be targeted to certain developed and approved programs with strict state control. The main conditions for increasing the competitiveness of the Dnepropetrovsk region as a promising industrial region should be: a stable macroeconomic environment for investment; liberal import regime and strong export strategy; effective policy of the state; effective strategy of foreign investment in conditions of limiting own resources, simplified procedures and rules by local authorities for small businesses to reduce operating costs; sustainable investment in human capital; integrated technology support; creation of clusters with the purpose of providing integration links between small and large business entities, affordable loans and interest rates, creation of competition in the banking sector, training of bank personnel in assessing the risks of lending to small and medium businesses, concessional lending and other financial factors.