Spatial Diversity of Unemployment in Ukraine

Abstract

The aim of this study is to analyze the spatial differentiation of unemployment rate in the regions in Ukrainian oblasts. Based on the definition of the unemployment rate, the determinants of unemployment rates registered in Ukraine were featured. To analyze the spatial diversification of unemployment rate, the method of spatial econometrics with the use of panel data and fixed effect method was applied. The results show that in Ukrainian economy one can distinguish two breakthrough moments that influenced the formation of unemployment rates in the oblasts discussed. The first of these was the period of the gas conflict with the Russian Federation in 2008 and 2009, the next difficult period for the Ukrainian economy in 2014-2015, when the annexation of the Crimean Peninsula and the military conflict with the Russian Federation took place. In both cases, the Ukrainian economy has been negatively affected, with GDP per capita declining with an increase in unemployment rate.