Asymmetries of economic development of Ukrainian and EU border regions under emergences of knowledge-based economy

Chuzhykov Viktor
Doctor of Economics, professor, Head of the Department of European Integration, "Kyiv National Economic University named after Vadym Hetman", e-mail:alexfedirko@yahoo.com

Fedirko Oleksandr
Candidate of Sciences (Economics), associate professor, associate professor of the Department of European Integration, "Kyiv National Economic University named after Vadym Hetman", e-mail:alexfedirko@yahoo.com

Cite this article:

Chuzhykov, V., Fedirko, O. (2016). Asymmetries of economic development of Ukrainian and EU border regions under emergences of knowledge-based economy. Ed.: М.D. Baldzhy (ed.-in-ch.) and others [Systema pensiinoho zabezpechennia Ukrainy ta yevrointehratsiini protsesy; za red.: М. D. Baldzhy (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 7 (239), pp. 147-160.

Abstract

Key features of cross-border EU–Ukraine asymmetries have been uncovered. The nature and dynamics of the growing EU–Ukraine differences in the macroeconomic indicators of border regions have been detected. Authors analyzed some selective regional development indicators: gross domestic product (GDP of the region, or GRP), foreign direct investment, the unemployment level for NUTS-2 border regions of Ukraine, Poland, Slovakia, Hungary and Romania. Authors pay special attention to the scientific and technological development of the border regions, trying to identify some possible areas of convergence. Based on the cluster analysis method, border areas’ innovative development dendograms have been built for the EU and Ukraine. To achieve this complete linkages clustering method was used. Further, employing the K-means clustering approach authors obtained the mean values of the parameters for the three clusters of border areas. This allowed to explain the phenomenon of “high patent activity” and predict the benefits of further convergence of these regions in the sphere of innovation. Authors conclude their research by defining some key elements of systemic diffusion of the western regions of Ukraine and the EU border areas to propose possible common development strategies: innovation and investment, logistics and transport, and creative ones.

Keywords

asymmetries, innovations, trans-border cooperation, economic diffusion.

JEL classification: R400

UD classification: 339.9 : 332.05

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