Application of Cluster Analysis To Determine the Level of the Budget Potential of the Ukrainian Regions

Abstract

Urgency of the research. Today's realities of financial relations prove the increasing role of regions in ensuring the social and economic development of the country. Therefore, there is a necessity to assess the budget potential and develop directions for its strengthening Target setting. It is expedient to determine the level of the budget potential of the Ukrainian regions and to develop directions for its strengthening. Actual scientific researches and issues analysis. An analysis of published scientific work has shown questions of budgetary potential are investigated by such scientists as S. V. Boiko, A. Ye. Buriachenko, N. S. Pedchenko, L. D. Safonova, V. Yu. Strilets, Ye. O. Malik, S. M. Frolov and others. Taking into account the considerable level of scientific research by these authors, it is necessary to continue research on the application of economic and mathematical methods in the study of financial processes, in our case, the use of cluster analysis to determine the level of budget potential of the regions. Uninvestigated parts of general matters defining. Despite a significant level of theoretical development of budget potential, the following aspects remain unresolved: the methodology for assessing the budget potential of the region, determining the level of budgetary potential, and developing directions for strengthening of budgetary capacity. Therefore, the problem has not lost its relevance today. The research objective. The object of the article is to study the theoretical issues of the budget potential of the Ukrainian regions and methods for its evaluation, the definition of the Ukrainian regions clusters in terms of budget potential. The statement of basic materials. The article substantiates the application of cluster analysis for determining the level of budget potential of the Ukrainian regions, clusters of Ukrainian regions are determined by the level of budget potential using cluster analysis and directions for strengthening the budget potential of regions are developed. Conclusions. One of the priority directions of the Ukrainian regions’ budget study should be statistical and mathematical methods, where a special place should be occupied by cluster analysis.

Development of the principles of “Green” logistics in the cities of the Russian federation

“…The negative impact of the logistics system on the environment is considered in scientific literature as the external influences [11,13].…”

Cluster Approach For Territorial Development Management

“…Actually, in general, the cluster approach gains popularity in economy. In recent years, many papers on this subject have been published by Russian authors (Gorochnaya et al, 2020;Ilyasov et al, 2019;Koroleva & Kurnikova, 2020;Kudryavtseva et al, 2020;Perminova et al, 2019;Perova & Papko, 2019;Taranova et al, 2015;Zhelnova, 2012) and by authors from other countries (Haddad & Rahman, 2020;Kumar et al, 2017;Ma et al, 2020;Mishchenko & Mishchenko, 2018) on the necessity to group regions depending on their particularities and differentiate the approaches for managing regions (Baranov et al, 2015). Researchers use modern data mining methods, in particular, self-organizing maps as one of the clusterization methods (Gritsay et al, 2018;Liashenko et al, 2018;Orazi et al, 2020).…”

Assessment of financial sustainability of the local budgets: case of Ukraine

“…The cluster analysis data in the sample formed by the level of budget potential (D. Mishchenko & L. Mishchenko, 2018) were adjusted using the statistical data for 2017-2019. Given the practical homogeneity of the characteristics of local (regional) budgets in each of the clusters, the city of Kyiv, Dnipropetrovsk region, Lviv region and Ivano-Frankivsk region (one region from each of the four clusters) were selected for the analysis of financial sustainability of local budgets.…”