ANALYSIS OF THE UNITED TERRITORIAL COMMUNITIES’ ECONOMIC ACTIVITIES EFFECTIVENESS IN THE REGIONS OF UKRAINE

Abstract

The article investigates the economic effectiveness of the the united territorial communities’ activities in terms of groups formed by the number of united territorial communities’ inhabitants and provides recommendations for optimizing the structure of the united territorial communities. An in-depth statistical analysis of the financial activities of united territorial communities in Ukraine in 2018 has been conducted. It revealed that the income of the united territorial communities is subject to lognormal distribution law. In the course of economic and mathematical modeling, two approaches have been proposed to maximize the economic effectiveness of the activities of the united territorial communities. In the first approach, the goal was to maximize the volume of own revenues of all united territorial communities of Ukraine, and in the second approach, to minimize the amount of expenditures on the management of the united territorial communities. It is determined that the second approach is optimal. The criteria for defining the effectiveness of territorial communities are : indicators of their own income, management costs and received subsidies in the calculation. The number of residents in different groups of united territorial communities was selected as the model optimizer. Higher economic effectiveness was found to be characteristic of the large united territorial communities. It is proposed to develop a set of economic norms and measures that would stimulate the consolidation of the small united territorial communities. Recommendations have been made to improve the existing structure of united territorial communities in the Rivne region in order to minimize the amount of management expenditures.