The rating model of Ukraine's regions according to the level of economic development

Abstract

The identification of the real level of economic development of the region is an important condition to design effective regional development policy. Economic development is characterized by a large number of indicators. This study provides an approach for assessing the level of economic development based on the use of a comprehensive index, which is a convolution of initial indicators. The model involves the use of both a group of absolute indicators and a group of relative measures of dynamics. Each of the groups of indicators has its special data normalization procedure and its special method of convolution into a partial comprehensive index. The outcome of the evaluation is obtained by weighted multiplicative convolution of partial comprehensive indexes. In this study, the level of economic development of regions of Ukraine according to the data of 2017 has evaluated. As a result, Ukraine's regions were allocated into three groups: with the level of economic development above average, with the average level of economic development and with the level of development below average. The article suggests a way to determine the boundary values of the comprehensive index for grouping. Comparison of the obtained results of grouping with the results of clustering of the Ukraine's regions by the k-means method with the same data showed their identity. The article shows that Ukraine's regions can be allocated by the level of economic development into other number of groups.

Assessment of Regions’ Socio-Economic Development Based on Bon-Metric Data

“…The approach presented illustrates the possibility of obtaining groupings, which allowed us to identify the regions' structure based on the set of non-metric indicators. Note that the results obtained in general, correlate with the grouping results obtained by applying cluster analysis technology based on a system of metrics [17]. Thus, the application of the presented approach, which is based on the construction of Kemeny's median, allows solving the problems of ranking and grouping of a set of objects on a collection of non-metric indicators.…”

Using a comprehensive index technology to analyze structural changes in the regions’ economic development in a COVID-19 pandemic: the case of Ukraine

“…The initial indicators are transformed to normalize form according to the formula (15) or formula (16) [17]:…”

“…To solve the problem of grouping, you can also use the approach presented in [17], in which the definition of the boundaries of the ranges is carried out by calculating the ratios of two adjacent values of the integrated indicator:…”

“…Given the natural multidimensionality of regions' economic development description, widely used methods of multidimensional statistical analysis for their structuring by the level of this characteristic and determination of disparities between regions, in particular, cluster analysis, factor analysis, multidimensional scaling, structural equation method, Solow-Swan, and Mankiw-Romer-Weil growth models [12,[15][16][17][18][19][20][21][22][23], which allows grouping regions into homogeneous aggregates based on various quantifiable indicators, to identify gaps in the development of individual regions. Among the shortcomings of these approaches, in our opinion, it is worth noting the difficulty of taking into account the importance of individual indicators.…”

Assessment model of regions’ economy in the context of their sustainable development

“…Normalization can be done in different ways. The most common approach uses the conversion of initial data using the largest and / or smallest sample values [17]. The way of normalization depends on the origins of the initial indicators and their range of values.…”