ASSESSMENT OF THE COMPETITIVENESS OF THE REGION'S ECONOMY: DOMESTIC AND FOREIGN EXPERIENCE

Abstract

In modern conditions, the issues of ensuring the competitiveness of individual regions are becoming increasingly important. The competitiveness of the region's economy is usually seen as its ability to produce goods and services based on maximum involvement in economic processes and efficient use of those factors of production that a certain territory has. Achieving the competitiveness of the region's economy is possible in the case of effective use of existing and creation of new competitive advantages. The development of competitive advantages depends mainly on natural resources and conditions (their availability and efficiency), quantity and quality of labor, level of science development in the region, level of education, degree of interaction between science and industry, etc. Strengthening the role of regions in the development of the state and their active participation in international economic processes necessitates the improvement of methods for assessing the level of competitiveness of regional economies. Of particular importance is the application of international practice in determining the level of competitiveness of the economy of individual territories. Increased interest in the study of competition between regions necessitates the development of scientifically sound methods for calculating the index of competitiveness of regions. The index of competitiveness of the region for making managerial decisions, developing a strategy for the development of the region, it is especially important in attracting investment resources. To achieve this goal, a number of scientific research methods were used, namely: analysis and synthesis for the generalization of scientific information, comparative analysis and the method of generalization. The competitiveness of the economy at the regional level is the least studied, therefore, there is a need for a more detailed study of existing practices to determine the level of competitiveness of the region. The aim of the article is to explore the main approaches to determining the level of competitiveness of the region's economy that are used in domestic practice. To study the world experience of assessing the competitiveness of the region's economy and the possibility of its application in Ukrainian realities. Assessing the level of competitiveness is important not only for individual regions but also at the state level, as it identifies those regions that need government subsidies. Various methods of determining the level of competitiveness of the region's economy are widely used in Ukraine. The methodology developed and proposed by the World Economic Forum has become the most widespread. The competitiveness index is an important indicator that characterizes the development of the region. Today in Ukraine various methods of calculation of this indicator are used. The competitiveness index is determined by various participants in economic relations (authorities, potential investors) and is the basis of management decisions made by them.