REQIONAL PECULIARITIES OF INDUSTRY DEVELOPMENT IN UKRAINE

Abstract

Interest in regional arrangement of the industry as the main system-forming and driving factor of the national economy development has emerged from the first steps of transformation processes. For the time being, relevance of the study of this problem is intensified by decentralization processes of the national economic management as well as by finding the ways to enhance the economic development of the regions. In view of this, the purpose of the article is to reveal peculiarities of regional structure of industry of Ukraine with determining the main problems in the industrial arrangements of regions. Solution of these problems should form the basis of modernization projects. Development trends of Ukraine’s industry, with determining the problem features of regional arrangement of the industry, as well as formation of species and reproducing structures of production, level of high-end technologies, commodity proportions of foreign trade and peculiarities of modernization of the Donbas industry have been considered. It is grounded that the prospects for its industrial revival are acceptable at the expense of the industries already having a production base in these areas, and innovation and high manufacturability should be provided mainly through the development of new technologies. It is emphasized the importance of a fundamental change in attitude to the industry as the industrial base of the economy revival, the growth of social standards and security of the country as well as the need to develop the national industry by strengthening the role of knowledge, innovations and information technologies as the “drivers” of economic growth. It is proposed to legislate the ideology of industrial development at the state and regional levels and to create an enabling European legal and regulatory environment for business entities and local authorities when implementing the modernization projects. As an institutional incentive for the revival of the national economy on a new industrial basis, it is recommended to adopt the Law of Ukraine “On industrial development of territories of the local self-government” with the determining the roles and responsibilities of local authorities in the industrial development of their own territories and strengthening the participation of industrial enterprises in economic and social development of local communities.