Empirical assessment of long-term aspects of sustainable regional development

Economic Annals-ХХI: Volume 166, Issue 7-8, Pages: 86-90

Citation information:
Marynych, T. (2017). Empirical assessment of long-term aspects of sustainable regional development. Economic Annals-XXI, 166(7-8), 86-90. doi: https://doi.org/10.21003/ea.V166-17

Tetiana Marynych
PhD (Economics),
Senior Lecturer,
Sumy State University
2 Rymskyi-Korsakov Str., Sumy, 40007, Ukraine
t.marynych@ssu.edu.ua
ORCID ID: http://orcid.org/0000-0002-1393-7607

Empirical assessment of long-term aspects of sustainable regional development

Abstract. Sustainable development becomes one of the biggest challenges of the modern world. Despite the global issue, there is an increasing relevance of the intensification of the regional research and collaboration. The paper summarises the international experience of the sustainable development assessment and modelling. It aims to identify factors that contribute to the regional sustainability and to empirically investigate the causal links and long-run cointegration relationships between them using quarterly time series data from 2001 to 2016 for Sumy region of Ukraine. The methodology for the study is based on the vector autoregressive (VAR) and the Johansen VEC approach procedure. The results of the estimation of the aggregate Index of sustainable development (ISD) show a great impact and variability of its economic component, which influences social and environmental indicators as well. The findings of econometric modelling have revealed long-term relationships and positively significant effects of capital related to the labour ratio and education on the regional economic growth. The lack of macroeconomic stability and unrealised potential of technological progress are deemed to make a negative impact on sustainable development. Further considerations based on the intersectoral econometric analysis are provided to support the appropriate policy making suggestions.

Keywords: Sustainable Development; Regional Economics; Cobb-Douglas Function; Causality; Cointegration; VAR; VEC; DSGE; VECM

JEL Classification: C32; R1

DOI: https://doi.org/10.21003/ea.V166-17

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Received 21.02.2017