Year: 2025
Type: article
Abstract: The article presents a comprehensive analysis of the impact of a market-oriented approach on regional development, outlining its challenges for the public administration system and examining mechanisms for minimizing socio-economic disparities. The study is based on an interdisciplinary approach that integrates economic modeling methods, comparative analysis of international experience, and regulatory assessment of regional strategy. The findings indicate that, without appropriate government intervention, market mechanisms may exacerbate territorial inequality by concentrating capital in economically developed regions. The study substantiates the necessity of implementing a balanced policy that includes infrastructure investments, targeted support for peripheral areas, and the integration of innovative clusters. The conclusions provide recommendations for optimizing state regional policy to achieve sustainable development and economic convergence. Points for Practitioners Regional governance professionals can utilize the presented findings to optimize regional development policies, ensuring a balance between market mechanisms and state regulation. It is crucial to understand that market-oriented management is facilitated by well-developed institutional/neoinstitutional mechanisms and flexible governmental support for weaker regions. The necessity of strategic investment management. Regional development requires active capital engagement, particularly through the creation of a favorable investment climate. To achieve this, government authorities should minimize bureaucratic barriers and develop financial incentives for businesses, focusing on long-term economic benefits. Infrastructure development as a key factor in addressing regional disparities. The state should promote the financing of infrastructure projects in less developed regions to enhance their competitiveness and reduce economic gaps between regions. A flexible combination of market mechanisms and state support. Excessive government intervention may restrict competition, whereas a complete withdrawal from regulation could deepen socio-economic inequality. A balanced approach is necessary to ensure a fair distribution of resources without stifling market-driven initiatives. Engaging local communities and businesses in decision-making processes. Effective regional governance is only possible with the broad involvement of stakeholders, enabling policies to be better adapted to the real needs of the population and businesses. Stimulating Innovation and Digital Transformation. The use of modern technologies, particularly artificial intelligence and big data, enables the optimization of management processes, including the analysis of conditions and needs through IT capabilities and technological advancements. This, in turn, allows for the development of more effective and flexible regional strategies. The implementation of these approaches can promote more balanced regional development, reduce economic polarization, and ensure stable socio-economic growth across all regions of the country.
Author: Olha Dukhnevych
Institution: German University of Administrative Sciences
Language: English
Field: Social Sciences
Domain: Social Sciences
SDG: Reduced inequalities
Open Access status: diamond
OpenAlex ID: W4411253286