Elaboration of a mechanism for regulating disparities of regional socio-economic development by fuzzy logic methods

Abstract

Introduction. Regions of Ukraine are characterized by a considerable level of disparities in socio-economic development. Interpretation of disparities is important in order to develop the measures preventing their aggravation. Problem Statement. The indices of regional disparities are variable and heterogeneous, with different dynamics. Thus, it is difficult to estimate them with the help of conventional methods that do not allow application of intermediate indices. Purpose. To formulate a mechanism for regulating regional disparities necessary for further solution of management and prognostic tasks based on innovative approaches given environmental variability, rapid, and nonlinear dynamics of disparities. Materials and Methods. For estimation and interpretation of indices for regional disparities, it is advisable to use methods of fuzzy logic theory. These methods apply to quantitative estimation of qualitative information (in the case when it is indefinite), modeling of increasingly complicated economic processes given a high reliability of calculations based on fuzzy logic models. Results. The mechanism for forecasting the dynamics of regional disparities by fuzzy logic methods has been presented as integration of interdependent factors ensuring development of the region under unstable conditions of external and internal environment. With the help of fuzzy logic methods, the membership function between the levels of disparities and the catalysts of disparities (retarders) has been built. The characteristics of regional disparity levels have been classified as permissible, regulated, and catastrophic. The study of dynamics of the disparity underlies elaborating public policy recommendations on the regulation of disparities. Conclusions. The characteristics of disparities for each region estimated on the basis of membership function pave the way for further forecasting the dynamics of disparities and developing a strategy for the regulation of disparities in each region.