CONCEPTUAL FINANCIAL-ECONOMIC MODEL OF URBAN SYSTEMS

Section "Economics": Economic and legal problems of sustainable development

Abstract

The dynamic processes of urbanization and administrative reform in Ukraine are challenged by a range of problems and tasks to improve the public urban policy, including the reforming and development of public transport systems, greening and humanization of environment, and improvement of conditions and living standards of residents. The problem of forming the cities’ financial foundation and efficient links between the cities and surroundings, as well as achievement of financial and economic effects from their consolidation into joint socio-economic and spatial structures is one of the most urgent to be solved. The paper aims to substantiate the conceptual financial model of urban systems that takes into account the new conditions and trends in the development of the cities in Ukraine that are related to the intensification of agglomeration processes. It will contribute to efficient cooperation between communities to solve complex tasks of spatial and socio-economic development and to disclose the cities’ opportunities to form budget policy in conditions of agglomerations. The paper contemplates the possibilities to form the financial-economic model at various territorial levels. The author develops the structural model of an urban system with a city as the core of the urban system, which is the administrative-territorial unit with defined boundaries, specific territorial development with prevailing spots of non-agricultural functions, capital concentration, economic activity types, economic and social benefits, and residents employed in non-agricultural production, institutions, and organizations. The legal framework is analyzed, contributing to the substantiation of financial-economic models at the level of cities, urban agglomerations, and urban systems. The financial-economic model of a city and consolidated territorial communities is built. The perspectives of urban systems’ development are outlined, and opportunities to search for efficient mechanisms of local budget forming through cooperation between territorial communities to solve the problems of the socio-economic and spatial development of territories are substantiated.

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