ANALYSIS OF THE IMPACT OF ENTERPRISE RELOCATION ON THE DEVELOPMENT OF THE REGION'S ECONOMY

Анотація

The article examines the impact of enterprise relocation on the development of regional economies in Ukraine under conditions of war and socio-economic transformation. It substantiates the economic essence of business relocation as a spatial movement of enterprises aimed at preserving economic activity, ensuring business continuity, improving operational efficiency, and adapting to changing security and market conditions. The study analyzes the main trends of enterprise relocation in Ukraine during 2022–2025, highlighting the sectoral structure of relocated businesses and their geographic distribution across safer regions of the country. The research identifies key economic effects of relocation on host regions, including increased employment, growth of tax revenues, and expansion of investment activity, infrastructure development, and formation of new industrial clusters. Particular attention is paid to changes in regional labor markets, including shifts in employment structure, labor mobility, and challenges related to the integration of internally displaced workers. The fiscal impact of relocation is also assessed using the example of the Zakarpattia region, which demonstrates a gradual reduction in dependence on state subsidies and an increase in the share of own budget revenues. At the same time, the study highlights a range of risks associated with enterprise relocation. These include increased pressure on regional infrastructure, rising housing and service costs, intensified competition for labor and resources, as well as potential social tensions and environmental challenges. It is emphasized that the effectiveness of relocation processes largely depends on the quality of public governance, regional development policies, and institutional support mechanisms aimed at ensuring balanced territorial development. The findings suggest that enterprise relocation serves not only as a crisis response mechanism for preserving economic capacity but also as a driver of structural transformation in regional economies. Properly managed, it can contribute to long-term economic modernization, improved competitiveness of regions, and more balanced spatial development within the country.

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