FINANCIAL LOGISTICS IN THE SYSTEM OF INTERGOVERNMENTAL RELATIONS AS A FACTOR OF SUSTAINABLE REGIONAL DEVELOPMENT

This study investigates the role of financial logistics within intergovernmental relations as a key determinant of sustainable regional development. The relevance of this research is grounded in the growing need for effective fiscal coordination and decentralization strategies amid regional disparities, economic uncertainty, and increasing pressure on public finances. Financial logistics, encompassing the planning, coordination, and execution of intergovernmental financial flows, is analyzed as a systemic factor influencing regional sustainability outcomes. To capture complex dynamics and potential threshold effects, a non-linear econometric model is developed and applied to panel data from five countries - USA, UK, Germany, Poland, and Ukraine - for the period 2022–2024. The dependent variable, Sustainable Regional Development Index (SRD), is examined against core independent variables including Financial Logistics Quality (FLQ), Intergovernmental Transfers (IGT), Budget Decentralization Efficiency (BDE), Fiscal Flexibility (FLEX), and Transaction Costs (TRC). The findings reveal significant non-linear relationships. Germany and the USA recorded the highest SRD values, peaking at 88,03 and 88,52 respectively, driven by high FLQ and BDE alongside moderate TRC. Ukraine demonstrated marked improvement, with SRD rising from 72,49 in 2022 to 84,55 in 2024, supported by reforms enhancing decentralization and reducing fiscal friction. In contrast, the UK and Poland experienced volatility due to inconsistent decentralization and rising transaction costs. The results affirm that an optimal balance between financial autonomy and central oversight is essential for sustainable regional growth. Conclusions emphasize the need for integrated, adaptive fiscal systems. Future research should incorporate institutional quality measures, political risk variables, and extend the time horizon to validate long-term effects.