ASSESSMENT OF THE IMPACT OF HOUSEHOLD INCOME ON CHANGES IN THE MAIN ECONOMIC INDICATORS OF THE REGION

Abstract

Income of the population is an important indicator that characterizes the level of well-being of the population of a particular region and the country as a whole. This research should be comprehensive, from different angles to study the main factors and areas of income and expenditure in terms of basic articles. This will allow to make sound conclusions and make the necessary informed decisions to improve the welfare of the population. The current economic situation in the country requires an in-depth study of the causes and consequences of changes in incomes on the example of a particular region, which can be the basis for solving these problems in the country as a whole.

The purpose of the study is to assess the impact of income and expenditure on the change in the main economic indicators of development of a particular region – Volyn region. Analysis of changes in nominal incomes shows a significant annual increase in total incomes by more than 10 times. Also, the disposable income per capita increased rapidly. The largest increases were observed in the years after the economic crises of 2008-2009 and 2014-2015. A comparison of trends in the amount of nominal and real (in 2004 prices) incomes in Volyn region showed that the amount of real incomes decreased during economic crises. Trends in changes in gross regional product are quite similar to trends in real disposable income in the region for the period 2004-2017. Certain opposite trends were observed only in 2005-2006 and in 2014. That is, in periods of economic instability at the national level. Trends in changes in gross regional product are quite similar to trends in real disposable income in the region for the period 2004-2017. That is, in periods of economic instability at the national level. Mainly, the lowest values of the indices of the above indicators were observed during periods of economic crisis.

If we analyze the trends of change in the nominal gross regional product and income of the population in the region, there is a rather positive trend of their significant annual increase. But it should be borne in mind that such changes occurred mainly due to the influence of inflation, which artificially overestimated the value of these indicators during the analyzed period. During 2004-2010, there was a steady trend of increasing the predominance of income over gross regional product, which indicates an increase in the welfare of the population of the region. But in 2011-2013, this figure was virtually unchanged - at 1.30. Declining incomes in relation to the final results of regional development and indicates a decrease in the welfare of the region during macroeconomic instability, the continuation of hostilities in the Donbass and the difficult economic situation in most sectors of the national economy.