Financial climate of territory: theoretical foundations and concept evaluation (Part 2)

Economic Annals-ХХI: Volume 136, Issue 11-12(2), Pages: 33-36

Citation information:
Karpinskyi, B., & Grygorenko, V. (2013). Financial climate of territory: theoretical foundations and concept evaluation (Part 2)*. Economic Annals-XXI, 11-12(2), 33-36. https://ea21journal.world/index.php/ea-v136-09/

* In this issue we publish the second part of the paper. The first part of it read in the issue 11-12(1)’2013 via the link https://ea21journal.world/index.php/ea-v135-23/

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

Valentyn Gryhorenko
PhD 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 2)*

Abstract. Introduction: Changes, associated with the disparity of development and aggravation of contradictions in economic systems at different levels in recent years, have opened a new phase of finding effective ways to ensure stability in the socio-economic development of territories as parts of the state. There is a need for systematic monitoring of the financial component of the territory as an integrated parameter that characterizes the qualitative and quantitative state of its financial system. Obtaining data for regional financial environment evaluating is an important step in the management of territory, because the municipal authorities are the main providers of direct and public services. Purpose: to synthesize the essential content of the financial climate of the territory and to develop a conceptual approach to its assessment in real time. Methods: Scientific methods of territory’s financial climate emergence are the ground for evaluation methodology. Results: An analytical calculation and integrated assessment of area’s financial climate for the proposed indicators on the example of some of the administrative-territorial units of Ukraine are performed. The main criteria for areas selecting for evaluation are proposed. A gradual process of the area’s financial climate assessing is undertaken and a systematic set of measures to optimize the estimation is formed. The features of the area’s financial climate integral index calculation in accordance with established techniques to improve the effectiveness of management decisions are highlighted. Conclusions: The theoretical background of the financial climate and the conceptual bases of its evaluation have been formed. This study is a solid theoretical and methodological foundation for practical calculation and evaluation of the area’s financial climate.

Keywords: Financial Potential Of The Territory; Area’s Financial Climate; Area’s Financial Climate Index; Coefficient Of The Area’s Financial Potential Usage Efficiency

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

* In this issue we publish the second part of the paper. The first part of it read in the issue 11-12(1)’2013 via the link https://ea21journal.world/index.php/ea-v135-23/

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Received 07.10.2013