Econometric approaches to forecasting financial support of socio-economic development of the region

Abstract

In the given article it is noted that the level of forecasting of processes of social development is determined by the efficiency of planning and management of economy and other spheres. Social and economic forecasting of basic trends of social development allows use of special calculation and logic methods, giving the opportunity to determine parameters of functioning of separate elements of productive forces in their interrelation and interdependence. At the current stage of regional development of the state, the forecasting of the management of social-economic processes in the region is urgent, and the need for their improvement in order to obtain effective tools for determining the main guidelines and directions of regional policy. Predictions that include scientific justification should be central to the planned decisions of state authorities and the implementation of social-economic policies in the region, to determine the main directions of its future development, place and role in the national economy. The process of forming a modern system of forecasting regional development in Ukraine took place under conditions of a large-scale state transformation and reorganization. The change in the political regime and reform of the Ukrainian economy, which began in the 1990s, led to the inversion of the role of the territory in the system of public administration. Regions that previously had very limited rights in the agricultural sector, received the right to make political, economic, social, cultural and other decisions on their own. Economic forecasting is necessary for determining ways of society development and economic resources which provide its achievement, for revealing most likely and economically efficient variants of long-term, medium term and current plans, grounding main directions of economic and technical politics, forecasting the consequences of the made decisions and measures taken at present. Application of econometric models in economics gives the opportunity to distinguish and formally describe the most significant, the most essential relations of economic variables and objects, as well as to get new knowledge about the object in the inductive way. In such model, in the simplified form, by many assumptions, the main dependence between economic indicators is determined.