Application of multivariate analysis methods for modeling regional economic development: the role of the construction industry in the face of current challenges
Year: 2024
Type: article
Abstract: The article explores the socio-economic development of the regions of Ukraine in the context of the impact of the construction sector, which plays a significant role in shaping the country's economic dynamics. The focus is on analyzing the factors that determine regional development, with particular emphasis on construction activity, which is one of the key drivers of economic growth. The purpose of the study is to model the factors influencing the socio-economic development of the regions of Ukraine and to assess the role of construction in this process. Using factor analysis and principal component analysis methods, the authors examine the relationships between key economic indicators, determining the extent of the impact of construction activity. The modeling results identified three main aggregate factors that have the greatest influence on regional development: the state of the environment and industrial development, construction activity, and agricultural development. Particular attention is given to analyzing regional differences in the development of the construction sector and assessing its role in shaping social infrastructure. It was found that construction activity, which has been significantly affected by the conflict, is crucial for the recovery and further growth of the economy in Ukraine's regions. In this regard, the article provides recommendations for optimizing government policy aimed at stimulating the construction sector to enhance economic resilience and regional infrastructure development. Significant attention is also devoted to the application of multivariate classification methods, specifically cluster analysis, for grouping regions based on the level of construction activity. This approach made it possible to identify regions with different dynamics in the construction sector and to determine the most important factors affecting their economic development. Conclusions were drawn about the uneven development of construction across Ukraine, and priorities were established for directing resources toward the recovery and stimulation of the construction sector in affected regions. Thus, the article makes a valuable contribution to advancing approaches to regional development analysis and the formulation of policies focused on economic recovery and improving quality of life in Ukraine.
Authors: O. Korepanov, I. Lazebnyk, V. Kovtun
Institution: V. N. Karazin Kharkiv National University
Language: English
Topic: Economic Issues in Ukraine
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4408021853