Problematic Issues and Key Barriers to the Effective Economic Development of the Eastern Regions of Ukraine

Currently, clustering is recognized as an effective mechanism and opportunity for structural institutional changes in the economy of the eastern regions of Ukraine. The purpose of the study is to identify problematic issues and identify the main obstacles that hold back the effective economic development of the eastern regions of Ukraine. Based on the analysis of the dynamics of the economic development indicators of Donetsk and Luhansk regions, a set of barriers was identified, which are tentatively divided into the following groups: political, regulatory, innovative, investment, informational, environmental, infrastructural, logistical. A predictive assessment of the indicators characterizing the economic development of the regions was carried out using economic and mathematical tools, and on this basis the trends of their further functioning were identified. Based on the generalization of regional development strategies of Donetsk and Luhansk regions, their shortcomings in terms of creating cluster structures were revealed. Taking into account the significant potential of the impact of clusters on the economy of the region, the necessity of developing an econometric model that will evaluate the effectiveness of the functioning of the cluster formation has been proven. The substantiation of the system of financial and economic relations arising in the process of managing the development and functioning of the regional economy based on the formation of clusters made it possible to determine the direct relationship between the clustering of the regional economy and the strengthening of the competitive positions of financial and economic entities on the regional market, which is an additional source lending to the regional economy and contributes to the growth of financial indicators of the national economy.