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Problems and Ways to Increase Financial Stability of the Territory

The results of long-term researches of authors have shown, that there is no uniform opinion among economists both concerning concept “stability of economic system”, and concerning its maintenance.

The considerable part of economists consider economic stability as a system, capable to resist internal and external influences. From the position of mathematical theory of stability such approach is the most justified. But if economy must constantly return to its initial condition, it is impossible to speak about its development. In addition, the impact of factors of positive direction in the economy means an improvement in the stability of the economic system, although from the position of physical systems – this is still instability.

Another approach to the definition of stability as the ability to simultaneously solve the problems of stabilization and development, in our view, is too vague. What is stabilization and development of economic system? Unfortunately, the authors do not provide a concrete answer to this question.

A number of scientists propose to identify zones or areas of stability when defining economic stability. Nevertheless, this approach is not without disadvantages. The most important one is the need to identify sustainability parameters for each specific territory. Therefore, comparative analysis between territories of the same level may not be comparable.

Along with the existing disagreements in the definition of the concept of “sustainability of economic systems,” there is a dispute among economists about the validity of applying the term “sustainability” to economic systems. Opponents express the opinion that stability in the economy does not exist and it is impossible to define it, based on the nature of economic relations. Indeed – the economic system is characterized by constant changes within itself, deterioration or improvement of its parameters can mean a constant development of the system, but not a loss of stability.

Arguments of opponents of application of the term “stability” to economic systems are quite reasonable, and if we consider the system from the position of influence of external and internal factors on it, then they are fair. However, if to analyze economic systems from the position of stability according to A. M. Lyapunov, then all questions about application of the theory of stability, in our opinion, should disappear, as use of ideal trajectory of development determining stability or instability of development, is quite adequate to describe economy of territory.

Innovative aspects of international economic activity

In modern international activity the greater importance is given to the methods of innovative development of production, which causes the high competitiveness in the world market of the countries as a whole, and subjects of entrepreneurial activity in particular. Innovation activity in the modern conditions is an important factor in ensuring economic growth of the state and enterprises, which leads to the relevance of the study of innovative aspects of international economic activity.

Innovations in international economic activity act as a necessary element of ensuring competitiveness. Experience of the developed countries shows that realization of the innovation strategy depends, first of all, on the resources which should be directed to the solution of innovative tasks. If on average the costs of basic research are taken as a unit, the costs of applied research and experimental development work exceed them in developed countries by 10 times.

The industrial and technological sector of the world economy and industry, especially in the field of high technology, is becoming global in content. Development of high technologies, production on their basis of products (goods, services), access to world markets, expansion of international integration in this area have become the most important strategic model and “locomotive” of economic growth for most industrialized countries of Western Europe, USA, Japan and countries of South-East Asia.

Problems of Socio-Economic Development and Territory Management

Methods of research – system analysis, economic analysis, forecasting, statistical analysis, comparative analysis, system and simulation modeling.

In the process of work the following results were obtained:

A methodology for estimating the Human Potential Index (HPI) and a plan for collecting baseline data for the calculations were developed, including:

  • developed and applied the basic principles of the development of the methodology of the HDI estimation;
  • collection of basic data for the calculations;
  • analyzed the results of the evaluation of PPI on the basis of the developed methodology;

determined the socio-economic profile of cities (regions), taking into account the dynamics of indicators over the past 5 years (2014-2018), including:

  • developed a methodology for calculating the index “CPI” (to determine the profiles of cities);
  • the analysis of economic activity of enterprises in the cities was carried out;
  • formation of socio-economic profile of cities (regions) taking into account the dynamics of indicators for the period 2014-2018 has been carried out;

defined the current state and developed a forecast of the quality of the urban environment for the period up to 2028, including:

  • assessment of the current state of the quality of urban environment was carried out;
  • development of the forecast of the quality of the urban environment;

calculation of human capital capacity of cities/regions with the allocation of the possibility of formation of a given level of human capital in the context of given target positions/qualifications of human capital capacity of cities/regions, including

  • assessment of the need for human capital and calculation of human capital capacity of cities/regions was carried out;
  • possibilities of formation of the given level of human capital in the context of the given target positions/qualifications of human capital capacity were analyzed;
  • scenarios of human capital evolution were developed taking into account baseline and optimistic scenarios of socio-economic development of regions, as well as baseline and forced scenarios for human capital growth factors in the region, including The study of baseline and optimistic scenarios of socio-economic development of regions was carried out; the development of scenarios for the evolution of human capital, taking into account the baseline and optimistic scenarios of socio-economic development of regions was carried out; analyzed the development of baseline and forced scenarios for determining the growth factors of human capital in the regions.