Journal of Management Information and Decision Sciences (Print ISSN: 1524-7252; Online ISSN: 1532-5806)

Research Article: 2021 Vol: 24 Issue: 4S

An innovative approach to determine the sustainable development of regions by harmonization of the economic, social and environmental components

Olha Popelo, Chernihiv Polytechnic National University

Svitlana Tulchynska, National Technical University of Ukraine “Igor Sikorsky Kyiv Polytechnic Institute”

Viktoriia Marhasova, Chernihiv Polytechnic National University

Nataliia Ivanova, Chernihiv Polytechnic National University

Halyna Samiilenko, Chernihiv Polytechnic National University

Citation: Popelo, O., Tulchynska, S., Marhasova, V., Ivanova, N., & Samiilenko, H. (2021). An innovative approach to determine the sustainable development of regions by harmonization of the economic, social and environmental components. Journal of Management Information and Decision Sciences, 24(S4), 1-9.

Abstract

The study is devoted to determining the state and dynamic changes in the sustainable development of regions by the harmony of economic, social and environmental components. Stages of the sustainable development assessment of the regions are proposed, including: grouping of statistical assessment data on the economic, social and environmental components of the sustainable development; calculation of integrated indices of the components of sustainable development; calculation of integrated indices to determine the harmonization of sustainable development by determining the angle between the ideal vectors of the components of sustainable development on the basis of integrated indices.

The results of the calculations are of practical importance, which is to provide more detailed information on the processes of sustainable development of regions and to propose measures that can give a synergistic effect to ensure positive dynamics of the sustainable development due to increasing harmonization of its components.

Keywords

Sustainable development; Economic development; Social development; Ecological development; Regions; Harmonization.

Introduction

For more than a decade, the world community has focused its development on achieving the sustainable development goals. This paradigm orientation makes it possible to achieve the global goals of humanity, as well as specific states and its regions.

Today, as evidenced by the analysis of publications in the field of the sustainable development research, there are different directions for methodological approaches to assessing the sustainable development of regions. It should be noted that not all methodological approaches to evaluation can be used and adapted to specific assessments, which is primarily due to the peculiarities of statistical assessments of the performance of national economies and their regions.

The proposed innovative approach to the definition of the sustainable development of regions by harmonization of the economic, social and environmental components makes it possible to carry out a deeper analysis of the sustainable development of regions.

Literature Review

Quite a few scientists have devoted their research to the study of various issues of the sustainable development of the regions, among which: De Laurentis (2020); Shiyan et al. (2020); Shkarlet et al. (2020); Paulus et al. (2020); Aguado et al. (2021); Álvarez-Lorente and Entrena-Durán (2021); Nejati et al. (2011); Popelo et al. (2021); Prus & Sikora (2021); Salamzadeh et al. (2021); Surówka et al. (2021); Tulchynska et al. (2021); Vovk et al. (2021); and Zhang & Wang, (2020).

Prus and Sikora (2021) identified the factors influencing the effectiveness of the concept of the sustainable development of rural areas. De Laurentis (2020) notes that the national governments of Italy and the United Kingdom have built regulatory and administrative relations on the organization and regulation of economic, social and environmental issues and the transfer of responsibility at the subnational level. Surówka et al. (2021) focused on the concept of a systematic approach to improving the technical infrastructure in the context of the sustainable development and cooperation strategies. According to Álvarez-Lorente and Entrena-Durán (2021), the actors should participate in the development policy, which, in turn, should take into consideration socio and economic, cultural, environmental and geological resources available in the area.

Aguado et al. (2021) examines the issues of sustainable development, the reasons for governments' decisions, and the motives of people to work together for sustainability are outlined. The purpose of the work by Paulus et al. (2020) was to formulate a strategy for sustainable local economic development through a systematic approach, namely the long-term analysis. The study of Zhang and Wang (2020) looked at a regional afforestation project based on the Sustainable Development Guide, with Fujian Province in China as an example for assessing benefits.

Materials and Methods

To ensure the sustainable development of regions, it is important to measure it by determining, for example, its integrated indices of economic, social and environmental components, as well as the degree of harmonization of the sustainable development of regions. In this regard, we propose to determine not only the integrated indices of the sustainable development, but also to calculate the degree of harmonization of the sustainable development (G).

Integral indices are calculated using the correlation analysis, but this is preceded by the use of statistical grouping. The method of statistical groupings makes it possible to distribute statistical evaluation data selected to assess the sustainable development of regions in relation to the economic, social and environmental components of the sustainable development. However, the grouping method is not sufficient for the calculation of integral indices, as it allows to establish only the presence of a certain relationship between the studied processes and phenomena. However, the method of statistical groupings does not allow to determine comparative quantitative parameters. This shortcoming eliminates the method of correlation analysis, the essence of which is to determine the correlation of certain processes.

The correlation analysis makes it possible not only to calculate integrated indices of components of the sustainable development, but also to determine the nature of changes in integrated indices from statistical indicators used in calculations by identifying the coefficients of the statistical indicators influence on the integrated index. Coefficients of influence are regression functions that determine the effect of the standardized indicators for assessing the sustainable development components on a given integrated index.

The unconditional reason for the correlation analysis use is that this method is suitable for the study of complex phenomena and processes which is the sustainable development, which depends on a large number of heterogeneous conditions and influences.

To determine the pairwise correlation of statistical indicators used to assess the components of the sustainable development, we use the Equation 1.

equation

Where:

equation covariance between statistical indicators xg, xp;

equation variances of normalized statistical indicators used in estimating the components of the sustainable development that are not equal to zero.

The normalized indicators are used for the calculation in accordance with the requirements of economic and mathematical modeling. The matrix of normalized indicators for assessing economic (n = 1), social (n = 2), and environmental (n = 3) components of the sustainable development is as follows (Equation 2):

equation

Where Yn is the matrix of the standardized indicators of the sustainable development components (n = 1, 2, 3), for a certain period (eight years, k = 8 (2013-2020);

x – the normalized values of statistical indicators for assessing the sustainable development components.

The correlation-regression analysis, as already noted, makes it possible to determine the degree of influence of individual factors on the component level of the sustainable development using the coefficients of influence (Kn) (Equation 3):

equation

Where Yn - matrix of the standardized indicators of the sustainable development component;

In is an indicator of the nth integral index of the corresponding component of the sustainable development of regions.

Calculations of integrated indices of the sustainable development components are carried out according to the Equation 4:

equation

Calculations of integrated indices of economic (Iecn), social (Isoc) and environmental (Iecl) components of the sustainable development of regions make it possible to determine the degree of harmonization of the sustainable development. The harmonization of the sustainable development components is calculated by finding the angle formed between a certain ideal vector of the sustainable development component (||1||) and the vector calculated by the integral index of the sustainable development component (||ISR||). The formulas for calculating the ideal and normalized vector are as follows (Equations 5-9):

equation

The angle is determined by calculating the degree of the sustainable development harmonization (G):

equation

Where f1 – a system function of the integrated index of the economic component of the sustainable development;

f2 – a system function of the integrated index of the social component of the sustainable development;

f3 – a system function of the integrated index of the ecological component of the sustainable development.

equation

Where f0 is a system function and is calculated as follows:

equation

Since the degree of the sustainable development harmonization determines a certain balance between the economic, social and environmental components of the sustainable development, the angle of these components will be in the range from 0º to 90º. In this case, the higher the degree of the sustainable development harmonization, the smaller the angle and closer to 0º.

In addition to harmonization, there is a harmony indicator of the sustainable development, which shows the established density between the components of the sustainable development and their relationship. That is, the harmony of the sustainable development makes it possible to assess the interconnectedness of the selected components development of the sustainable development. To determine the harmony of the sustainable development, in the opinion of the authors, it is advisable to use the mathematical apparatus of the "golden section".

Results

The proposed stages of the sustainable development assessment make it possible to test the proposed approach on the example of the regions of Ukraine using the software package MathCad-15.

The obtained results of integrated indices of the sustainable development components are presented in Table 1.

Table 1
Arithmetic Mean Values of Integrated Indices of the Sustainable Development Components of Ukraine’s Regions for 2013-2020
Regions Iecn.
avg
The rank of the region by value Iecn.avg Isoc.
avg.
The rank of the region by value Isoc.avg. Iecl.
avg.
The rank of the region by value Iecl.avg
Vinnytsia 0,286 7 0,195 10 0,226 9
Volyn 0,087 22 0,123 15 0,069 20
Dnipropetrovsk 0,330 3 0,194 11 0,285 3
Donetsk 0,059 25 0,079 21 0,040 24
Zhytomyr 0,127 15 0,123 16 0,095 15
Transcarpathian 0,091 21 0,074 23 0,063 22
Zaporozhye 0,316 5 0,235 5 0,216 11
Ivano-Frankivsk 0,198 11 0,197 9 0,279 4
Kiev 0,939 1 0,288 1 0,596 1
Kyrovohrad 0,191 12 0,201 8 0,230 6
Luhansk 0,044 24 0,052 25 0,033 25
Lviv 0,221 10 0,185 12 0,231 5
Mykolaiv 0,111 16 0,105 17 0,089 17
Odessa 0,187 13 0,227 6 0,226 10
Poltava 0,274 8 0,162 14 0,229 7
Rivne 0,110 17 0,096 19 0,091 16
Sumy 0,106 18 0,077 22 0,083 18
Ternopil 0,100 19 0,099 18 0,065 21
Kharkiv 0,327 4 0,256 3 0,286 2
Kherson 0,086 23 0,083 20 0,056 23
Khmelnytsky 0,314 6 0,245 4 0,212 12
Cherkasy 0,096 20 0,064 24 0,078 19
Chernivtsi 0,175 14 0,204 7 0,228 8
Chernihiv 0,246 9 0,264 2 0,156 14
Kyiv city 0,774 2 0,195 13 0,157 13
The arithmetic mean value of the integrated index of the sustainable development component for all regions 0,231 - 0,123 - 0,168 -

The calculations and the results given by the values of the average integrated indices by region allow us to conclude that not all regions have the same degree of economic, social and environmental component of the sustainable development. And there are regions where there is a certain asymmetry in the development of the sustainable development components. The only region in which the average integrated indices of the sustainable development components have the same rank is the Kyiv region, which occupies a leading position at the same time in terms of three values of integrated indices. There are also regions in which there is a small difference of no more than two steps in the ranks of the arithmetic mean values of integral indices. Such regions include: Zhytomyr (15-16 rank), Transcarpathia (21-23 rank), Luhansk (24-25 rank), Mykolaiv (16-17 rank), Ternopil (18-21 rank), Kharkiv (2-4 rank) and Kherson (20-23 rank) regions.

At the same time, there are regions in which there is a fairly high discrepancy in the values of the ranks of the arithmetic mean of the integral indices. For example, Dnipropetrovsk region ranks 3rd in terms of the values of integrated indices of the economic and environmental components of the sustainable development and 11th in terms of the value of the integrated index of the social component of the sustainable development. Ivano-Frankivsk region ranked 11th in terms of the economic development index, 9th in terms of the social development index and 4th in terms of the value of the integrated index of the environmental component of the sustainable development. This is due to a number of objective reasons related to the peculiarities and resource capabilities of the regions of Ukraine, but in any case, such asymmetry needs to be eliminated.

Calculations of integrated indices of the sustainable development components make it possible to determine the degree of the sustainable development harmonization in accordance with the proposed methodological approach (Equations 7-9). In Table 2, presents the results of calculations of the degree the sustainable development harmonization are presented.

Table 2
The Values of the Degree the Sustainable Development Harmonization of Ukraine’s Regions (G) For 2013-2020, the Angle in Degrees
Regions G Gavg.
the average for 2013-2020
Rank of the region
2013 2014 2015 2016 2017 2018 2019 2020
Vinnytsia 11 13 17 19 19 19 18 18 17 3
Volyn 20 28 58 71 75 85 60 59 57 6
Dnipropetrovsk 31 19 24 34 39 38 32 27 31 17
Donetsk 77 69 64 68 78 83 63 68 71 13
Zhytomyr 10 16 15 20 19 20 25 28 19 19
Transcarpathian 46 27 31 54 64 51 44 57 47 8
Zaporozhye 17 16 15 15 15 15 15 16 16 16
Ivano-Frankivsk 11 14 16 19 17 13 13 16 15 5
Kiev 10 17 21 19 14 13 14 13 15 4
Kyrovohrad 12 8 14 11 18 14 18 17 14 4
Luhansk 62 70 66 74 90 88 80 63 75 3
Lviv 14 12 12 15 18 19 18 17 16 20
Mykolaiv 16 18 22 23 23 22 23 27 22 5
Odessa 18 18 26 17 17 14 24 8 18 9
Poltava 6 9 10 10 14 15 13 13 11 7
Rivne 15 21 25 28 29 24 14 35 24 2
Sumy 16 20 24 29 30 29 28 26 25 10
Ternopil 19 26 66 85 82 77 70 57 60 11
Kharkiv 40 36 33 31 34 39 37 32 35 18
Kherson 31 35 39 41 44 50 55 55 44 14
Khmelnytsky 3 8 10 11 12 12 10 9 9 15
Cherkasy 20 26 27 26 24 26 29 32 26 1
Chernivtsi 14 10 13 17 18 13 15 18 15 12
Chernihiv 13 12 11 13 19 23 23 20 17 4
Kyiv city 22 22 18 14 15 9 9 7 15 6
The arithmetic mean of the harmonization degree for all regions (Gavg.) 22 23 27 31 33 33 30 30 28 4

Harmonization of the sustainable development involves determining the angle formed between the ideal vector and the vector of the calculated integrated index, with the smaller the defined angle the greater the degree of harmonization of the sustainable development, and vice versa, the greater the degree of degrees approaching 90º indicates unsatisfactory harmonization of the sustainable development.

According to the data presented in Table 2, it can be noted that the regions with the best degree of harmonization of the sustainable development include Khmelnytsky (average value of the harmonization degree is 9º), Poltava (Gavg = 11º), Kirovohrad (Gavg = 14º), as well as Ivano-Frankivsk, Kiev, Chernivtsi region and the city of Kyiv, in which the average value of the harmonization degree is 15º. However, it should be noted that the harmonization degree over the years in each region had quite significant fluctuations. For example, in Khmelnytsky region in 2013 the harmonization value of the sustainable development was 3º, and in 2017-2018 Gavg = 12º. In the Poltava region in 2013 Gavg = 6º, and in 2018 the harmonization value of the sustainable development was Gavg = 15º.

The regions with the worst harmonization of the sustainable development on average are Luhansk (average harmonization value of the sustainable development is 75º), Donetsk (Gavg = 71º), Ternopil (Gavg = 60º), Volyn, (Gavg = 57º), Transcarpathian (Gavg = 47º) area. It should be noted that these regions are outsiders in terms of gross regional product and are recipients of government subsidies. Variation in the values of harmonization of sustainable development in these regions is also quite high. Thus, the harmonization value of the sustainable development in 2013 was Gavg = 19º, and in 2016 Gavg = 85º.

The values of the harmonization angle of the sustainable development are followed by some trends in certain regions, but mostly these are negative trends characterized by an increase in the harmonization angle of the sustainable development. Thus, in Zhytomyr oblast the value of the angle increased from 10º in 2013 to 28º in 2020, in Mykolayiv oblast from 16º to 27º, and in Kherson oblast from 31º to 55º. And only the city of Kyiv shows positive results, i.e. a decrease in the angle from 22º in 2014 to 7º in 2020. If we consider harmonization in general for all regions, it should be noted that the arithmetic mean of the harmonization degree tended to increase in the studied period and only two recent years have illustrated a slight improvement in the harmonization of the sustainable development.

Conclusion

Thus, there is no region that occupies the same rating for all arithmetic mean values of harmonization of sustainable development components. However, there is a clear relationship between the ranks of the regions by the arithmetic mean of the harmonization of the sustainable development components and the ranks of the integrated indices of the its components.

The calculations allow us to conclude that in general, regions that have higher values of harmonization of the sustainable development components also have higher values of the integrated indices of the sustainable development.

The authors consider the processes of improving the sustainable development harmonization, which can be defined as reducing the angle between the calculated and ideal vector, as well as increasing the density of the relationship between the components of sustainable development, which is determined by the harmony of the economic, social and environmental components of the sustainable development.

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