Business environment of regions in Ukraine: Peculiarities of structural-institutional changes
-
DOIhttp://dx.doi.org/10.21511/ppm.19(1).2021.38
-
Article InfoVolume 19 2021, Issue #1, pp. 456-469
- Cited by
- 1074 Views
-
353 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
The development and efficient functioning of entrepreneurship is the basis of a market economy, as well as the key to the country’s innovative socio-economic development and growing competitiveness on an international scale. The formation of a transparent and qualitative business climate is an incentive for the efficient entrepreneurship development. The paper is aimed at identifying structural-institutional transformations in the business environment and their impact on the development of small businesses. The analysis of socio-economic parameters of the business environment is based on the elasticity method and the system approach, which have been tested on the example of cities in the Western region of Ukraine. Outlining the features of setting up the business environment and its functioning has provided the grounds for detecting major problems hampering efficient business development. The comparative analysis has confirmed a close relationship between socio-economic transportation processes and conditions created for businesses. The evaluation of institutional environment has confirmed that cities striving to improve transparency in climate regulation and urban environment management achieve the growing investment activity and positive dynamics of small businesses development. The calculated elasticity coefficients prove that the growing investment activity positively impacts the number of small businesses and the volume of products sold by them. However, the expected growth in employment was not achieved due to the high level of shadow activity on the labor market and migration activity of the population.
- Keywords
-
JEL Classification (Paper profile tab)R11, R12, R58
-
References50
-
Tables4
-
Figures1
-
- Figure 1. Dynamics of the development of small enterprises in the cities of regional significance in the Western region, 2012–2017
-
- Table 1. Matrix of cross-correlation between economic development and favorability of the business environment*
- Table 2. Cities of the Western region in investment sector transparency rankings for the 100 largest cities of Ukraine
- Table 3. Correlation between the socio-economic and institutional environment in the cities that are regional centers of Ukraine
- Table 4. Evaluation of the impact of investment processes on structural transformations in small businesses in cities of regional significance in the Western region of Ukraine
-
- Acs, Z. J., & Szerb, L. (2007). Entrepreneurship, economic growth and public policy. Small Business Economics, 28(2-3), 109-122.
- Audretsch, D. B., & Belitski, M. (2017). Entrepreneurial ecosystems in cities: establishing the framework conditions. Journal of Technology Transfer, 42(5), 1030-1051.
- Audretsch, D. B., & Moog, P. (2020). Democracy and Entrepreneurship. Entrepreneurship Theory and Practice.
- Audretsch, D. B., Belitski, M., & Desai, S. (2019). National business regulations and сity entrepreneurship in Europe: a multilevel nested analysis. Entrepreneurship Theory and Practice, 43(6), 1148-1165.
- Balcerowicz, E., & Ustenko, O. (April 1, 2006). Regulatory Policy in Ukraine: Current State and What Should Be Done to Improve the Business Environment. Center for Social and Economic Research CASE Report (No. 324).
- Belitski, M., Chowdhury, F., & Desai, S. (2016). Taxes, corruption, and entry. Small Business Economics, 47(1), 201-216.
- Braithwaite, J. (2006). Responsive regulation and developing economies. World Development, 34(5), 884-898.
- Braunerhjelm, P., Desai, S., & Eklund, J. E. (2015). Regulation, firm dynamics and entrepreneurship. European Journal of Law and Economics, 40(1), 1-11.
- Bertelsmann Stiftung, BTI 2018 Country Report — Ukraine. Gütersloh: Bertelsmann Stiftung, 2018.
- Center for Insights in Survey Research. (n.d.). Fifth All-Ukrainian Municipal Survey. (In Ukrainian).
- Chekh, N., & Vinnyk, I. (2017). Regulatory environment of business activities in Ukraine. Innovative Technologies and Scientific Solutions for Industries, 1(1), 124-129.
- Chukhno, A. A. (2003). Postindustrialna ekonomika: teoriia, praktyka ta yikh znachennia dlia Ukrainy. [Post-industrial economy: theory, practice and their significance for Ukraine] (632 p.). (In Ukrainian).
- Díez-Martín, F., Blanco-González, A., & Miotto, G. (2021). The impact of state legitimacy on entrepreneurial activity. International Entrepreneurship and Management Journal.
- Doing Business. (2019). Measuring Business Regulations. Reports.
- Dolishnii M. I., Kozoriz, M. A., Milkovoda, V. P., & Danylenko, A. S. (1997). Pidpryiemnytstvo v Ukraini. Problemy stanovlennia ta rozvytku [Entrepreneurship in Ukraine. Problems of formation and development] (363 p.). (In Ukrainian).
- Focus. (n.d.). Pravilnyy rakurs. Reyting komfortnosti ukrainskikh gorodov [The correct angle. Comfort rating of Ukrainian cities]. (In Russian).
- Halchynskyi, A. (2005). Hlobalni transformatsii: uroky dlia Ukrainy [Global transformations: lessons for Ukraine]. Polityka i chas – Politics and time, 8, 18-28. (In Ukrainian).
- Heiets, V. M. (2003). Transformatsiini protsesy ta ekonomichne zrostannia v Ukraini [Transformational processes and economic growth in Ukraine] (440 p.). Kharkiv: Fort. (In Ukrainian).
- Indeks nastroiv maloho biznesu 2018. [Small Business Sentiment Index 2018]. (In Ukrainian).
- Inwest Ukraine. (n.d.).
- Kapitalni investytsii RAES u 2018 rotsi sklaly bilshe triokh miliardiv hryven [RNPP’s capital investments in 2018 amounted to more than three billion hryvnias]. (In Ukrainian).
- Karta pidpryiemstv Ukrainy. [Map of enterprises of Ukraine]. (In Ukrainian).
- Karyy, O., & Knjazevska, O. (2009). Tasks prioritization of strategic planning of cities development: experts’ approach. Economics & Sociology, 2(1), 58-66.
- Korohod, I. V. (2016). Rol maloho biznesu v strukturnykh transformatsiiakh regionalnykh hospodarskykh system. [The role of small business in the structural transformations of regional economic systems]. Chernihiv. (In Ukrainian).
- Kukharskaya, N. A. (2013). Sushchnost i napravleniya transformatsii ekonomicheskogo razvitiya Ukrainy v usloviyah rynochnykh reform [The essence and directions of transformation of economic development of Ukraine in the conditions of market reforms]. Ekonomіchnі іnnovatsii – Economic innovations, 52, 113-123. (In Russian).
- Liu, S., Qian, H., & Haynes, K. E. (2021). Entrepreneurship in Small Cities: Evidence From U.S. Micropolitan Areas. Economic Development Quarterly, 35(1), 3-21.
- Melnyk, M. I. (2007). Teoretyko-metodolohichni pidkhody doslidzhennia biznes-seredovyshcha. [Theoretical and methodological approaches to the study of the business environment]. Strukturna transformatsiia terytorialnykh suspilnykh system – Structural transformation of territorial social systems, 5(67), 423-436. (In Ukrainian).
- Melnyk, M. I. (2012). Formuvannia biznes-seredovyshcha Ukrainy v umovakh instytutsiinych transformatsii [Formation of the business environment of Ukraine in the conditions of institutional transformations]. (568 p.).
- Moroz, S. G. (2019). Rehuliatorna polityka rozvytku maloho pidpryiemnytstva v Ukraini. [Regulatory policy for small business development in Ukraine] (Candidate’s thesis) (263 p.).
- Plan ekonomichnoho rozvytku mista Dubno na 2019–2020 roky [Plan of economic development of the city of Dubno for 2019–2020]. (In Ukrainian).
- Plan mistsevoho ekonomichnoho rozvytku m. Uzhgorod [Plan of local economic development of Uzhhorod]. (2018). (In Ukrainian).
- Ponomarenko, T., Zinchenko, O., Khudoliei, V., Prokopenko, O., & Pawliszczy, D. (2018). Formation of the investment environment in Ukraine in the context of European integration: An example of Poland. Investment Management and Financial Innovations, 15(1), 361-373.
- Pyvovarov, M. G. (2018). Strukturna transformatsiia subiektiv pidpryiemnytstva Ukrainy ta yii naslidky [Structural transformation of business entities of Ukraine and its consequences]. Zbirnyk Naukovykh prats DNUZT imeni akademika V. Lazariana “Problemy ekonomiky transportu” – Collection of research papers of DNUZT named after the academician V. Lazarian “Problems of transport economics”, 15, 32-42. (In Ukrainian).
- Regional Doing Business. (n.d.). Kudy vkladaty hroshi v Ukraini [Where to invest in Ukraine]. (In Ukrainian).
- Regional Doing Business. Web-site. (n.d.). (In Ukrainian).
- Rehionalnyi indeks dilovoho seredovyshcha 2016 [Regional index of business environment 2016.] (pp. 20-26). (In Ukrainian).
- Reitynh prozorosti 100 mist. [Transparency rating of 100 cities]. (In Ukrainian).
- Reitynh prozorosti “100 naibilshykh mist Ukrainy”. [Rating of transparency of the investment sector “100 largest cities of Ukraine”]. (In Ukrainian).
- Reverchuk, S. K. (1996). Malyi biznes: metodolohiia, teoriia i praktyka [Small business: methodology, theory and practice] (192 p.). (In Ukrainian).
- Reyting investitsionnoi effektivnosti gorodov Ukrainy, itogi 4-go kvartala 2016 g. [Rating of investment efficiency of cities of Ukraine. results of the 4th quarter of 2016]. (In Russian).
- Reyting investitsionnoi effektivnosti gorodov. Evro-Reyting [Rating of investment efficiency of cities. Euro-Rating]. (In Russian).
- Reyting komfortnosti ukrainskikh gorodov. [Comfort rating of Ukrainian cities]. (In Russian).
- Reyting-list gorodov. Evro-Reyting. [Rating list of cities. Euro-Rating]. (In Russian).
- State Statistics Service of Ukraine. (n.d.). Neformalno zainiate naselennia za rehionamy za 2018 [Informally employed population by region in 2018]. (In Ukrainian).
- State Statistics Service of Ukraine. (n.d.). Website. (In Ukrainian).
- The World Bank. (n.d.). Development Indicators. GDP per capita.
- Varnalii, Z. (2008). Male pidpryiemnytstvo: osnovy teorii i praktyky [Small business: the basics of theory and practice] (302 p.). (In Ukrainian).
- Vlasiuk, O. S., & Mokii, A. I. (2012). Strukturno-instytutsionalni transformatsii ta ekonomichna bezpeka derzhavy [Structural and institutional transformations and economic security of the state] (pp. 396-470). (In Ukrainian).
- Voloshchuk, N. Yu. (2016). Rehionalni osoblyvosti rozvytku sfery maloho pidpryiemnytstva: dys. ... kand. ekon. nauk [Regional features of small business development: Ph.D. in Economics thesis] (224 p.). Uzhhorod. (In Ukrainian).
- Vorotina, L. I., & Honcharov, H. O. (2015). Struktura ta osnovni kharakterystyky natsionalnoi systemy ekonomichnoi bezpeky maloho pidpryiemnytstva v Ukraini [Structure and main characteristics of the national system of economic security of small business in Ukraine]. Zbirnyk naukovykh prats Bukovynskoho universytetu. Ekonomichni nauky – Collection of scientific works of Bukovynian University. Economic sciences, 11, 84-93. (In Ukrainian).