Methodical approach to estimation of financial security of regions of Ukraine

Abstract

 Introduction. Financial safety is one of the key components of the economic safety of a region, reflecting the state and major financial parameters of its economic development. The questions of financial safety of administrative units are studied, but there is no unity of scholars’ views on the use of methodological tools for this phenomenon assessing.

Purpose. The article is devoted to the development of a methodological approach as for the estimation of financial security of regions of Ukraine on the basis of calculation of the area of quadrilaterals.

Method (methodlogy). Methods of graphic, cluster and taxonomic analysis are used in the study.

Results. At the first stage of the proposed methodological approach the key areas to ensure the financial safety are identified. Those are fiscal, social sector, business sector and the openness of the financial system of the region. A system of partial indicators which characterize the sectors of financial safety is justified, identified and formed. Integrated indicators of financial safety for the detected constituents at the regional level are built. Ukrainian regions are classified on the basis of the financial safety levels for the various sectors. Classification of administrative units with different levels of financial security budge are formed according to the cluster analysis.Integral measure of financial safety at the regional level is computed by calculating the area of quadrilaterals. Dynamics of integral indicator of financial safety of regions from the second cluster, which includes Kharkiv region, are investigated. Determination of the rate of change of this indicator has allowed to analyze the trend of the integral coefficient of financial safety of regions. The results of application of the methodological approach have become the basis for identification of the factors that influence the fluctuations of financial safety indicators according to its constituent and integral sign.