The Model of Economic Analysis of International Trade Between Ukraine and the European Union

The equations of gravity have undergone a significant evolution since their initial application in economics. The conception is perceived as originating in physics. However, international trade studies allow to a more thorough analysis of the instances of gravity equations application. The conception of gravity, initially underestimated by economists and devoid of solid theoretical foundations, was rarely used in empirical research. However, at present this conception has become the main instrument of analysis. First of all, this is determined by its empirical utility, ability to take into account many factors that shape trade, and, as a result, flexibility of its application. Over the past few years, the use of the conception of gravity has led to the conclusion that economists are finding more and more accurate methods for evaluating econometric models and taking into account increasingly complex factors. As a result, they go beyond purely economic factors that influence the intensity of trade relations between countries. It is worth noting that the conceptions formulated in early theories of trade, such as absolute advantage, comparative advantage, proportions of the provision of factors of production, and many others are directed towards studying the nature, causes and consequences of international trade. The so-called basis for international trade was seen alternately in various factors: differences in labor productivity, different proportions in the provision of factors of production, the effect of scale, the different position of countries on the so-called ladder of technological progress, etc. Some theories see the reasons for trade in differences between countries, others (for example, intra-industry trade) – in similarities. An important topic is also the role of entities operating with foreign capital in creating the trade flows

Generalization of the World Experience in Differentiation of Regions on Account of Innovation

One of the main strategic objectives of our State is to promote innovation, which should include development and launch of new products at the national market, development and introduction of new technologies, creation and application of new knowledge. In accordance with the said above, the article has examined the experience of European Union Member States to improve the efficiency of innovation and differentiation of regions in terms of innovation, tools for evaluation of the innovation activity status has been determined in relation to the territories of the European Union at the level of regions

Stimulating the Effective Use of the Economic Potential of Region

Modern conditions are characterized by intense competition, deep globalization of the world economy and rapid technological progress. In this context, the effective mobilization and use of the economic potential of region becomes a strategic goal to achieve sustainable development and strengthen competitiveness. Stimulating the effective use of the economic potential of region requires an integrated approach, systemic thinking, active participation of government bodies, enterprises and the public. The aim of the study was to determine the directions of stimulating the effective use of the economic potential of region. In the course of the study, an analysis of methods for assessing the economic potential of territories has been carried out and a methodical approach to assessing the economic potential of region has been proposed, which consists in carrying out a comprehensive assessment of the economic potential of the region, taking into account the proposed synergistic combination of economic, human, infrastructural, research, and quality of life potentials. The formed system of indicators of concentration of economic potential and the level of its use in the form of a ratio of the beneficial effect of region to the potential of region will allow to form an analytical basis for the formation of measures to increase the level of economic potential and the efficiency of its use in the regions of Ukraine. According to the results of the carried out study, it is defined that each region has its own potential, the use of which, under certain conditions, can become an additional source of growth of the State’s economy. Ensuring the competitiveness of the national economy requires the creation of conditions for the effective use of the potential of each region. The creation of such conditions requires constant monitoring with a quantitative assessment of the level of concentration of the region’s potential and the effectiveness of its use