Науковий вісник НГУ

Conceptual foundations and reasonable necessity of financial convergence of sustainable development of regions in the country

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Category: Economy and management

Last Updated on 04 June 2015

Published on 29 March 2015

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Authors:

I.M. Vakhovych, Dr. Sci. (Econ.), Professor, Lutsk National Technical University, Head of the Department of Finance, Vice Rector for Scientific and Pedagogical Affairs, Lutsk, Ukraine

I.M. Kaminska, Cand. Sci. (Econ.), Associate Professor, Lutsk National Technical University, Senior Lecturer of the Department of Economics and Business, Lutsk, Ukraine

I.V. Ropotan, Lutsk National Technical University, Postgraduate student, Lutsk, Ukraine

Abstract:

Purpose. To develop the conceptual basis of financial convergence of sustainable development of regions in the country and to substantiate its objective necessity.

Methodology. The achievements of economic and financial science concerning the study of intergovernmental relations, fiscal equalization, and financial mechanism of state regulation of regional development served for the methodological base for the research. For the purpose of developing the conceptual foundations of financial convergence of sustainable development, a systematic approach is used in the article which takes into account the dynamic functional relationship between the state and the development of a balance and its components, and a set of techniques that ensure its implementation, namely: logic synthesis, analysis, comparison, deduction and induction.

Findings. Based on the theoretical analysis of the economic substance of financial convergence, generalization and systematization of scientific approaches, the interpretation of the financial convergence position of the sustainable development of regions in the country has been improved. Objective reasons that determine the necessity of financial convergence of sustainable development of regions of Ukraine have been determined.

Originality. Conceptual foundations of financial convergence of sustainable development of regions in the country have been improved, which, unlike the existing, foresee its consideration as the regulative and stimulatory process of the convergence levels of financial providing of the social, economic and ecological development of the regions of the country, that will ensure integrity and financial equality of living conditions in all its regions.

Practical value. Formation of the conceptual foundations of financial convergence of sustainable development of regions in the country is the initial condition by establishing methods of its diagnosis and the mechanisms and tools of its providing according to which the equal access to public goods and services is achieved, the elimination of budgetary distortions stability of local budgets, adjustments scarcity of financial resources in the region, increase the investment attractiveness of the region, improving access to domestic financial resources and more.

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