ANALYSIS OF THE PRECONDITIONS FOR AN INTEGRATED ADAPTIVE STRATEGY OF NATIONAL ECONOMIC DEVELOPMENT AT NATIONAL AND LOCAL LEVELS

The article investigates the economic preconditions for forming an integrated adaptive development strategy for Ukraine’s national economy, taking into account the interdependence between national economic policy and the resource capacities of territorial communities. The study distinguishes macroeconomic outcomes from institutional characteristics and examines why positive annual growth rates cannot be regarded as evidence of the full recovery of productive capacity. The empirical assessment covers 2016–2025 and draws on published World Development Indicators series and retrospectively harmonised Worldwide Governance Indicators scores presented in the supporting research material. A cumulative real-output index is constructed using 2021 as the reference year, while regulatory quality, rule of law, control of corruption and government effectiveness are analysed as distinct dimensions. The results demonstrate that the contraction of 2022 created a persistent output gap despite subsequent positive growth and that the institutional indicators followed an uneven trajectory. A classification of economic preconditions is offered, comprising macroeconomic imbalances, fiscal capacity, investment and infrastructure needs, institutional coordination and spatial disparities. The paper also specifies a diagnostic framework in which nationally comparable indicators characterise the general operating environment, whereas community-level indicators should measure own-source revenues, transfer dependence, capital expenditure, investment implementation and local labour-market conditions. The proposed approach does not impute missing local observations and does not claim causal relationships on the basis of descriptive comparisons. Its contribution consists in connecting empirical diagnosis with differentiated strategic instruments, transparent resource allocation and a feedback mechanism linking local outcomes to national priorities. The conclusions identify the conditions under which interlevel coordination may improve economic adaptability without suppressing territorial differentiation, and outline a research agenda for constructing a verified panel of local fiscal and investment indicators.

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Journal
State and regions Series Economics and Business
Published
2026-11-03
DOI
https://doi.org/10.32782/1814-1161/2026-3-24
Primary Topic
Economic Issues in Ukraine
Type
article
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article

ANALYSIS OF THE PRECONDITIONS FOR AN INTEGRATED ADAPTIVE STRATEGY OF NATIONAL ECONOMIC DEVELOPMENT AT NATIONAL AND LOCAL LEVELS

Oleksandr Pykhanov
State and regions Series Economics and Business
Economic Issues in Ukraine
article

ANALYSIS OF THE PRECONDITIONS FOR AN INTEGRATED ADAPTIVE STRATEGY OF NATIONAL ECONOMIC DEVELOPMENT AT NATIONAL AND LOCAL LEVELS

Oleksandr Pykhanov
article en

Abstract

The article investigates the economic preconditions for forming an integrated adaptive development strategy for Ukraine’s national economy, taking into account the interdependence between national economic policy and the resource capacities of territorial communities. The study distinguishes macroeconomic outcomes from institutional characteristics and examines why positive annual growth rates cannot be regarded as evidence of the full recovery of productive capacity. The empirical assessment covers 2016–2025 and draws on published World Development Indicators series and retrospectively harmonised Worldwide Governance Indicators scores presented in the supporting research material. A cumulative real-output index is constructed using 2021 as the reference year, while regulatory quality, rule of law, control of corruption and government effectiveness are analysed as distinct dimensions. The results demonstrate that the contraction of 2022 created a persistent output gap despite subsequent positive growth and that the institutional indicators followed an uneven trajectory. A classification of economic preconditions is offered, comprising macroeconomic imbalances, fiscal capacity, investment and infrastructure needs, institutional coordination and spatial disparities. The paper also specifies a diagnostic framework in which nationally comparable indicators characterise the general operating environment, whereas community-level indicators should measure own-source revenues, transfer dependence, capital expenditure, investment implementation and local labour-market conditions. The proposed approach does not impute missing local observations and does not claim causal relationships on the basis of descriptive comparisons. Its contribution consists in connecting empirical diagnosis with differentiated strategic instruments, transparent resource allocation and a feedback mechanism linking local outcomes to national priorities. The conclusions identify the conditions under which interlevel coordination may improve economic adaptability without suppressing territorial differentiation, and outline a research agenda for constructing a verified panel of local fiscal and investment indicators.

State and regions Series Economics and Business(3(141))
Rauf Ablyazov East European University (UA)
Openalex Percentile: Top 8%
Economic Issues in Ukraine
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