Money, finances and credit

Financial climate of territory: theoretical foundations and concept evaluation (Part 1)

Economic Annals-XXI

Economic Annals-XXI: Volume 135, Issue 11-12(1), Pages: 91-94

Citation information:
Karpinskyi, B., & Grygorenko, V. (2013). Financial climate of territory: theoretical foundations and concept evaluation (Part 1)*. Economic Annals-XXI, 11-12(1), 91-94. https://ea21journal.world/index.php/ea-v135-23/

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* In this issue we publish the first part of the paper. The second part of it read in the issue 11-12(2)’2013 via the link. https://ea21journal.world/index.php/ea-v136-09/

Borys Karpinskyi
PhD (Economics),
Professor,
Lviv State Academy of Finance
3 Kopernyk St., Lviv, 79000, Ukraine
Karpinsky01@mail.ru

Valentyn Grygorenko
Post-Graduate Student,
Lviv State Academy of Finance
3 Kopernyk St., Lviv, 79000, Ukraine
GrygorenkoVO@i.ua

Financial climate of territory: theoretical foundations and concept evaluation (part 1)*

Abstract. Introduction. Changes associated with the disparity of development and aggravation of contradictions in economic systems at different levels in recent years has opened a new phase of finding effective ways of stability ensuring in the socio-economic development of territories as defining the state’s development. There is a need for systematic monitoring of the financial component of the area as an integrated parameter that characterizes the qualitative and quantitative state of its financial system. Obtaining data for evaluating regional financial environment is an important step in management of territory, because the municipal authorities are the main providers of direct and public services. Purpose. The objective of this study is to synthesize the essential content of financial climate of the territory and to develop a conceptual approach to its assessment in real time. Methods. Usage of the general scientific methods defined theoretical aspects of the territory’s financial climate emergence and its subsoil formed methodological evaluation. Results. The study of economic and financial processes and management practices of regional financial systems has identified the need for a new category of the financial situation of the territory assessing. The financial climate area is a new economic category, which enables to assess quantitatively and qualitatively the socio-economic and financial situation of the regional territory. The authors have formed an integral approach to area’s financial climate evaluating, and the ways to display it. The key performance indicators were generated and their main weight in the total value of the financial climate identified. Conclusions. The theoretical background of the financial climate and conceptual bases of its evaluation were formulated. This study forms a solid theoretical and methodological foundation for practical calculation and evaluation of the areas’ financial climate.

Keywords: Territory; Financial Climate; Investment Climate; Economic Climate; Financial Resources

JEL Classification: E44; E60; E63; E69; H23; H39

* In this issue we publish the first part of the paper. The second part of it read in the issue 11-12(2)’2013 via the link. https://ea21journal.world/index.php/ea-v136-09/

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Received 07.10.2013

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