Economic Transformation in Poland and Ukraine When Poland and Ukraine introduced their political, social and economic system reforms at the beginning of the 1990s, both economies were at a similar level of economic development (GDP $9,500 per capita). However, in 2018, Ukrainian GDP per capita had remained at the same level since 1991, while in Poland, it had increased significantly, to more than $27,000 per capita. This book assesses the reasons for the growing gap between the level of economic development in Ukraine and Poland. It examines the course of events and evaluates the effectiveness of the system transformations, both in the context of the economy, as a whole, and in individual regions (Polish ‘voivodeships’ (provinces) and Ukrainian ‘oblasts’). It also analyzes the con- sequences of the 2008–2009 Ukrainian-Russian gas conflict and 2013–2014 Euromaidan events for the Ukrainian economy. Additionally, the authors offer an insight into the migration movements, which have recently been observed in Poland and Ukraine. This is the first comprehensive, comparative analysis concerning the spa- tial diversification of economic development in these two countries, and the authors highlight the ways in which these reforms have proved effective in Poland and hardly effective in Ukraine. This analysis helps to identify the basic interrelations between the core macroeconomic variables at the regional level and the impact of political events from both a national and regional perspective. The book will appeal to academics, researchers and policy makers in- terested in the economic and political changes in these two countries, in a comparative setting and on national and regional levels, as well as those working on issues of EU integration. Rafa ł Wis ł a is Professor at the Department of Economics and Innovation of the Jagiellonian University, Krakow, Poland. Andrzej Nowosad is Assistant Professor at the Institute of Journalism, Media and Social Communication of the Jagiellonian University, Krakow, Poland. Routledge Studies in the European Economy 52 Digital Transformation and Public Services Societal Impacts in Sweden and Beyond Edited by Anthony Larsson and Robin Teigland 53 Economic Policy, Crisis and Innovation Beyond Austerity in Europe Edited by Maria Cristina Marcuzzo, Antonella Palumbo and Paola Villa 54 The Economics of Monetary Unions Past Experiences and the Eurozone Edited by Juan E. Castañeda, Alessandro Roselli and Geoffrey E. Wood 55 Economic History of a Divided Europe Four Diverse Regions in an Integrating Continent Ivan T. Berend 56 The Political Economy of Independence in Europe Hana Lipovská 57 The European Monetary Union After the Crisis From a Fiscal Union to a Fiscal Capacity Nazaré da Costa Cabral 58 Empirical Macroeconomics and Statistical Uncertainty Spatial and Temporal Disaggregation of Regional Economic Indicators Mateusz Pipie ń and Sylwia Roszkowska 59 Economic Transformation in Poland and Ukraine National and Regional Perspectives Edited by Rafa ł Wis ł a and Andrzej Nowosad For more information about this series, please visit www.routledge.com/ series/SE0431 Economic Transformation in Poland and Ukraine National and Regional Perspectives Edited by Rafa ł Wis ł a and Andrzej Nowosad LONDON AND NEW YORK First published 2020 by Routledge 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN and by Routledge 52 Vanderbilt Avenue, New York, NY 10017 Routledge is an imprint of the Taylor & Francis Group, an informa business © 2020 selection and editorial matter, Rafa ł Wis ł a and Andrzej Nowosad; individual chapters, the contributors The right Rafa ł Wis ł a and Andrzej Nowosad to be identified as the authors of the editorial material, and of the authors for their individual chapters, has been asserted in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988. The Open Access version of this book, available at www.taylorfrancis.com, has been made available under a Creative Commons Attribution-Non Commercial-No Derivatives 4.0 license. Trademark notice : Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Names: Wisła, Rafał, editor. | Nowosad, Andrzej, editor. Title: Economic transformation in Poland and the Ukraine / edited by Rafał Wisła and Andrzej Nowosad. Description: 1 Edition. | New York : Routledge, 2020. | Series: Routledge studies in the European economy | Includes bibliographical references and index. Subjects: LCSH: Economic development—Poland. | Economic development—Ukraine. | Poland—Economic policy—1990– | Ukraine—Economic policy—1991- | Labor mobility—Poland. | Labor mobility—Ukraine. Classification: LCC HC340.3 .E3236 2020 (print) | LCC HC340.3 (ebook) | DDC 338.9438—dc23 LC record available at https://lccn.loc.gov/2020026874 LC ebook record available at https://lccn.loc.gov/2020026875 ISBN: 978-0-367-48493-4 (hbk) ISBN: 978-1-003-04137-5 (ebk) Typeset in Times New Roman by codeMantra The publication was funded by the Priority Research Area Society of the Future under the program “Excellence Initiative – Research University” at the Jagiellonian University in Krakow. List of figures vii List of tables xiii List of maps xv List of contributors xix Introductory remarks xxiii R A FA Ł W I S Ł A A N D A N DR Z E J NOWO SA D Acknowledgements xxix 1 Institutional conditions for the functioning of the Polish and Ukrainian economies 1 A N DR Z E J NOWO SA D, U M I T T U R A N L I A N D R A FA Ł W I S Ł A 2 Ownership transformations in Poland and Ukraine 25 S V I T L A NA C H UGA I E VSK A , R A FA Ł W I S Ł A A N D A N DR Z E J NOWO SA D 3 Structural changes in the Polish and Ukrainian economies against the background of other Central and Eastern European countries 41 R A FA Ł W I S Ł A , S V I T L A NA C H UGA I E VSK A , A N DR Z E J NOWO SA D A N D U M I T T U R A N L I 4 The demographic potential of Polish voivodeships and Ukrainian oblasts 57 NATA L I I A C H UGA I E VSK A , OL E K SI I K E L E BA J A N D T OM A SZ T OK A R SK I 5 The economic potential of Polish voivodeships and Ukrainian oblasts 86 NATA L I I A C H UGA I E VSK A , OL E K SI I K E L E BA J A N D T OM A SZ T OK A R SK I Contents vi Contents 6 Product market structures 100 K ATA R Z Y NA F I L I P OW IC Z , T OM A SZ T OK A R SK I A N D T I T US F E R E NC 7 Determinants of the spatial differentiation of labor markets in Poland and Ukraine 127 PAW E Ł DY K A S , T OM A SZ M I SI A K A N D T OM A SZ T OK A R SK I 8 Simulations of voivodeship and oblast development trajectories. An analysis based on the gravity growth model 155 S V I T L A NA C H UGA I E VSK A , K ATA R Z Y NA F I L I P OW IC Z , T OM A SZ T OK A R SK I A N D R A FA Ł W I S Ł A 9 The spatial differentiation of migration in Poland and Ukraine 199 NATA L I I A C H UGA I E VSK A A N D DA N I E L A SZ C Z E PA N I A K 10 Spatial differentiation of the economic development of Polish voivodeships and Ukrainian oblasts 223 MON I K A B OL I Ń SK A A N D OL E SI A C HOR N E N K A Poland – Ukraine: key findings 246 R A FA Ł W I S Ł A A N D A N DR Z E J NOWO SA D Bibliography 253 Index 263 3.1 GDP per capita in Poland and Ukraine between 1990 and 2018 (USD, PPPs, in 2011 prices) 42 3.2 Consumer price index (2010 = 100), Poland and Ukraine, 2010–2017 43 3.3 Changes in the gross added value of the industrial sector (ISIC: 10–45) in GDP (in %), Poland and Ukraine 44 3.4 Changes in the gross value added of the industrial sector (ISIC: 10–45) in GDP (in %), 1995–2017, The Baltic states and Ukraine 44 3.5 Changes in the gross value added of the industrial sector (ISIC: 10–45) in GDP (in %), 1995–2017, The Visegrád group and Ukraine 45 3.6 Changes in the gross value added of the industrial sector (ISIC: 10–45) in GDP (in %), 1990–2017, Bulgaria, Romania, Russia and Ukraine 45 3.7 Changes in the gross value added of the agricultural sector (ISIC: 1–5) in GDP (in %), 1995–2017 46 3.8 Changes in the gross value added of the agricultural sector (ISIC: 1–5) in GDP (in %), 1995–2017, the Baltic states 47 3.9 Changes in the gross value added of the agricultural sector (ISIC: 1–5) in GDP (in %), 1995–2017, the Visegrád Group 48 3.10 Changes in the gross value added of the agricultural sector (ISIC: 1–5) in GDP (on %), 1990–2017, Bulgaria, Romania, Russia and Ukraine 48 3.11 Investment rates of Ukraine, Poland and the Baltic states, 1995–2018 (%) 50 3.12 Investment rates of Ukraine and Visegrad group countries, 1995–2018 (%) 51 3.13 Investment rates of Ukraine, Poland, Bulgaria, Russia and Romania, 1995–2018 (%) 52 Figures viii Figures 3.14 Changes in the share of R&D expenditures in GDP (in %), 1996–2017, Poland and Ukraine 53 3.15 Changes in the share of defense spending in GDP (in %), 1993–2017, Poland and Ukraine 54 4.1 Population in groups of voivodeships, between 2004 and 2017 (million people) 62 4.2 Urbanization rates in 2005–2017 (%) 70 4.3 Population in groups of oblasts, between 2004 and 2017 (million people) 76 4.4 Population in groups of oblasts, between 2004 and 2017 (million people) 79 4.5 Village population in oblast groups in 2004–2017 (million people) 80 4.6 Urbanization rates in oblast groups in 2004–2017 (%) 83 5.1 GDP in voivodeship groups in 2004–2016 (PLN billion, according to 2015 prices) 88 5.2 GDP per capita in voivodeship groups in 2004–2016 (PLN, in thousands, according to 2015 prices) 90 5.3 GDP in oblast groups in 2004–2017 (UAH billion, according to 2016 prices) 93 5.4 GDP per capita in oblast groups in 2004–2017 (UAH, in thousands, according to 2016 prices) 97 6.1 Gross value added in agriculture in voivodeship groups in 2004–2015 (PLN billion, according to 2015 prices) 101 6.2 Share of gross value added in agriculture in voivodeship groups in 2004–2015 (%) 102 6.3 Gross value added in industry in voivodeship groups in 2004–2015 (PLN billion, according to 2015 prices) 104 6.4 Share of gross value added in industry in voivodeship groups in 2004–2015 (%) 105 6.5 Gross value added in construction in voivodeship groups in 2004–2015 (PLN billion, according to 2015 prices) 107 6.6 Share of gross value added in construction in groups of voivodeships in 2004–2015 (%) 108 6.7 Gross value added in services in voivodeship groups in 2004–2015 (PLN billion, according to 2015 prices) 110 6.8 Share of gross value added in services in voivodeship groups in 2004–2015 (%) 111 6.9 Gross value added in agriculture in oblasts groups in 2004–2016 (UAH billion, according to 2016 prices) 113 6.10 Share of gross value added in agriculture in oblasts in 2004–2016 (%) 115 6.11 Gross value added in industry in oblasts groups in 2004– 2016 (UAH billion, according to 2016 prices) 117 Figures ix 6.12 Share of gross value added in industry in oblasts in 2004–2016 (%) 119 6.13 Gross value added in construction in oblasts groups in 2004–2016 (billion UAH, according to 2016 prices) 120 6.14 Share of gross value added in construction in oblasts groups in 2004–2016 (%) 121 6.15 Gross value added in services in oblast groups in 2004– 2016 (billion UAH, according to 2016 prices) 123 6.16 Share of gross value added in construction in oblast groups in 2004–2016 (%) 124 7.1 Dynamics of GDP and employment in Poland in the 21st century (2001 = 100) 128 7.2 Unemployment rates in Poland in the 21th century (%) 129 7.3 Dynamics of GDP and employment in Ukraine in the 21st century (2001 = 100) 130 7.4 Unemployment rates in Ukraine in the 21th century (%) 131 7.5 Labor productivity in Polish voivodeships groups in 2004–2016 (1,000 PLN, according to 2015 prices) 132 7.6 Wages in Polish voivodeships groups in 2004–2017 (PLN, according to 2015 prices) 135 7.7 The unemployment rates in groups of voivodeships in 2004–2017 (in %) 137 7.8 Coefficients of the variability of labor productivity, wages and unemployment rates in Poland in 2004–2017 139 7.9 Labor productivity in oblast groups in 2004–2017 (1,000 UAH, according to 2016 prices) 140 7.10 Wages in groups of oblasts in 2004–2017 (UAH, according to 2016 prices) 142 7.11 The unemployment rates in group of oblasts in 2004–2017 (%) 144 7.12 Coefficients of variability of labor productivity, wages and unemployment rates in Ukraine in 2004–2017 146 8.1 Simulation of trajectories of labor productivity in groups of voivodeships in 2004–2016 (thousand PLN, according to 2014 prices) 182 8.2 Simulation of trajectories of labor productivity in groups of voivodeships in scenario II (thousand PLN, according to 2014 prices) 183 8.3 Simulation of trajectories of labor productivity in groups of voivodeships in scenario III (thousand PLN, according to 2014 prices) 184 8.4 Simulation of trajectories of labor productivity in groups of voivodeships in scenario IV (thousand PLN, according to 2014 prices) 185 x Figures 8.5 Simulation of trajectories of labor productivity in groups of voivodeships in scenario V (thousand PLN, according to 2014 prices) 186 8.6 Simulation of trajectories of labor productivity in groups of voivodeships in scenario VI (thousand PLN, according to 2014 prices) 187 8.7 Simulation of trajectories of labor productivity in groups of voivodeships in scenario VII (thousand PLN, according to 2014 prices) 188 8.8 Simulation of trajectories of labor productivity in groups of voivodeships in scenario VIII (thousand PLN, according to 2014 prices) 189 8.9 Simulation of trajectories of labor productivity in groups of oblasts in scenario I (thousand UAH, according to 2016 prices) 8.10 Simulation of trajectories of labor productivity in groups of oblasts in scenario II (thousand UAH, according to 2016 prices) 190 8.11 Simulation of trajectories of labor productivity in groups of oblasts in scenario III (thousand UAH, according to 2016 prices) 192 8.12 Simulation of trajectories of labor productivity in group of oblasts in scenario IV (thousand UAH, according to 2016 prices) 193 8.13 Simulation of trajectories of labor productivity in groups of oblasts in scenario V (thousand UAH, according to 2016 prices) 194 8.14 Simulation of trajectories of labor productivity in group of oblasts in scenario VI (thousand UAH, according to 2016 prices) 195 8.15 Simulation of trajectories of labor productivity in groups of oblasts in scenario VII (thousand PLN, according to 2016 prices) 196 8.16 Simulation of trajectories of labor productivity in groups of oblasts in scenario VIII (thousand PLN, according to 2016 prices) 197 9.1 Migration inflow rates in voivodship groups in 2004–2017 200 9.2 Rates of migration outflows in groups of voivodeships in 2004–2017 202 9.3 Migration balance rates in voivodeship groups in 2004–2017 204 9.4 Relative wages in voivodeship groups in 2004–2017 206 9.5 Relative unemployment rates in voivodeship groups in 2004–2017 207 9.6 Rates of migration inflows in groups of oblasts in 2004–2017 208 9.7 Rates of migration outflows in circuit groups in 2004–2017 210 Figures xi 9.8 Net migration inflow rates in groups of oblasts in 2004–2017 212 9.9 Relative wages in oblast groups in 2004–2017 213 9.10 Relative unemployment rate in oblast groups in 2004–2017 215 10.1 Taxonomic indicators of economic development in groups of voivodeships in 2004–2016 230 10.2 Taxonomic indicators of economic development in oblast groups in 2004–2016 236 10.3 Taxonomic indicators of economic development in groups of voivodeships and groups of oblasts in 2004–2016 241 10.4 Taxonomic indicators of economic development in the Mazowieckie Voivodeship, Kyiv and the Kyiv Oblast, as well as in Poland in the years 2004–2016 243 2.1 Number of economic entities in Ukraine between 2000 and 2015 (in thousands) 32 4.1 Basic data about the Polish voivodeships 65 4.2 The population of Polish cities with more than 200,000 inhabitants in 2004 and 2017 (1,000 people) 66 4.3 Population of cities and villages in 2004 and 2017 (1,000 people) 71 4.4 Basic data about the Ukrainian oblasts 72 4.5 The population in Ukrainian cities with more than 200,000 inhabitants in 2001 and 2017 (1,000 people) 82 6.1 Share of gross value added in groups of voivodeships (in 2003–2015) and groups of oblasts (in 2004–2016) in Poland and Ukraine (in %) 115 7.1 Estimate of the parameters of the equation for increasing unemployment rates for Poland and Ukraine 149 7.2 Estimate of the parameters of the gross real wage equation for Poland and Ukraine 150 8.1 Estimates of the parameters of Eq. (8.1) for Poland 166 8.2 Estimates of the parameters of Eq. (8.1) for Ukraine 167 8.3 Labor productivity in 2015 and simulations of labor productivity in 2050 171 8.4 Average annual growth rates of labor productivity in 2016–2050 in subsequent scenarios (%) 172 8.5 Labor productivity in 2017 and simulations of labor productivity in 2050 177 8.6 Average annual growth rates of labor productivity in 2018–2050 in subsequent scenarios (%) 178 9.1 Estimates of the parameters of Eqs. (9.1) and (9.2) for Poland 217 9.2 Estimates of the parameters of Eqs. (9.1) and (9.2) for Ukraine 219 9.3 Estimates of the parameters of Eqs. (9.3) and (9.4) 221 10.1 Taxonomic indicators of economic development in voivodeships in selected years 229 10.2 Taxonomic indicators of economic development in oblasts in selected years 232 10.3 Taxonomic indicators in Polish voivodeships and Ukrainian oblasts in selected years 240 Tables 4.1 Administrative division of Poland 58 4.2 Administrative division of Ukraine 59 4.3 Population in voivodeships, between 2004 and 2017 (1,000 people) 4.4 Average urbanization rates in voivodeships in 2005–2017 (%) 69 4.5 Population in oblasts between 2004 and 2017 (1,000 people) 75 4.6 Urbanization rates in oblasts in 2004–2017 (%) 80 5.1 GDP in voivodeship groups in 2004–2016 (PLN billion, according to 2015 prices) 87 5.2 GDP per capita in voivodeships in 2004–2016 (PLN, in thousands, according to 2015 prices) 89 5.3 GDP in oblasts in 2004–2017 (UAH million, according to 2016 prices) 91 5.4 GDP per capita in oblasts in 2004–2017 (UAH, in thousands, according to 2016 prices) 95 6.1 Gross value added in agriculture in voivodeships in 2004–2015 (PLN billion, according to 2015 prices) 102 6.2 Share of gross value added in agriculture in voivodeships on average in 2004–2015 (%) 103 6.3 Gross value added in industry in voivodeships in 2004– 2015 (PLN billion, according to 2015 prices) 105 6.4 Share of gross value added in industry in voivodeships in 2004–2015 (%) 106 6.5 Gross value added in construction in voivodeships in 2004–2015 (PLN billion, according to 2015 prices) 108 6.6 Share of gross value added in construction in voivodeships on average in 2004–2015 (%) 109 6.7 Gross value added in services in voivodeships in 2004– 2015 (PLN billion, according to 2015 prices) 111 6.8 Share of gross value added in services in voivodeships on average in 2004–2015 (%) 112 6.9 Gross value added in agriculture in oblasts in 2004–2016 (UAH million, according to 2016 prices) 114 Maps xvi Maps 6.10 Share of gross value added in agriculture in the oblasts on average in 2004–2016 (%) 116 6.11 Gross value added in industry in oblasts in 2004–2016 (UAH billion, according to 2016 prices) 118 6.12 Share of gross value added in industry in oblasts in 2004–2016 (%) 119 6.13 Gross value added in agriculture in oblasts in 2004–2016 (UAH billion, according to 2016 prices) 121 6.14 Share of gross value added in industry in oblasts in 2004–2016 (%) 122 6.15 Value added in services in oblasts on average in 2004–2016 (billion UAH, according to 2016 prices) 123 6.16 Share of gross value added in industry in oblasts in 2004–2016 (%) 125 7.1 Labor productivity in Polish voivodeships in 2004–2016 (1,000 PLN, according to 2015 prices) 132 7.2 Wages in Polish voivodeships in 2004–2017 (PLN, according to 2015 prices) 135 7.3 The unemployment rates in voivodeships in 2004–2017 (in %) 137 7.4 Labor productivity in the oblasts in the years 2004–2017 (1,000 UAH, prices 2016) 140 7.5 Wages in Ukrainian oblasts in 2004–2017 (UAH, according to 2016 prices) 142 7.6 The unemployment rates in oblasts in 2004–2017 (in %) 144 8.1 Diversification of capital-labor ratio in voivodeships in 2004–2016 (thousand PLN, according to 2014 prices) 158 8.2 Differentiation of gravitational effects in voivodeships in 2004–2016 (million PLN 2 /mingeo 2 according to 2014 prices) 159 8.3 External gravitational effects in voivodeships in 2004–2016 (million PLN 2 /mingeo 2 according to 2014 prices) 160 8.4 Investment rates in voivodeships in 2004–2015 (%) 161 8.5 Diversification of capital-labor ratio in oblasts in 2004– 2017 (thousand UAH, according to 2016 prices) 162 8.6 Differentiation of national gravitational effects in the oblasts in 2004–2017 (million UAH 2 /mingeo 2 , according to 2016 prices) 163 8.7 External gravitational effects from Russia in oblasts in the years 2004–2017 (million UAH 2 /mingeo 2 , according to 2016 prices) 164 8.8 External gravitational effects from Poland in oblasts in the years 2004–2017 (million UAH 2 /mingeo 2 , according to 2016 prices) 165 8.9 The investment rates in Ukrainian oblasts in 2004–2017 (%) 165 8.10 Diversification of labor productivity in voivodeships in 2015 (thousand PLN, according to 2014 prices) 169 Maps xvii 8.11 Diversification of labor productivity in oblasts in 2017 (thousand UAH, according to 2016 prices) 175 8.12 Diversification of labor productivity in voivodeships in scenario I (thousand PLN, according to 2014 prices) 181 8.13 Labor productivity in 2050 in voivodeships in scenario II (thousand PLN, according to 2014 prices) 182 8.14 Labor productivity in 2050 in voivodeships in scenario III (thousand PLN, according to 2014 prices) 183 8.15 Labor productivity in 2050 in voivodeships in scenario IV (thousand PLN, according to 2014 prices) 184 8.16 Labor productivity in 2050 in voivodeships in scenario V (thousand PLN, according to 2014 prices) 185 8.17 Labor productivity in 2050 in voivodeships in scenario VI (thousand PLN, according to 2014 prices) 186 8.18 Labor productivity in 2050 in voivodeships in scenario VII (thousand PLN, according to 2014 prices) 187 8.19 Labor productivity in 2050 in voivodeships in scenario VIII (thousand PLN, according to 2014 prices) 188 8.20 Diversification of labor productivity in oblasts in scenario I (thousand UAH, according to 2016 prices) 189 8.21 Diversification of labor productivity in oblasts in scenario II (thousand UAH, according to 2016 prices) 191 8.22 Diversification of labor productivity in 2050 in oblasts in scenario III (thousand UAH, according to 2016 prices) 192 8.23 Diversification of labor productivity in 2050 in oblasts in scenario IV (thousand UAH, according to 2016 prices) 193 8.24 Labor productivity in 2050 in voivodeships in scenario V (thousand PLN, according to 2016 prices) 194 8.25 Labor productivity in 2050 in oblasts in scenario VI (thousand UAH, according to 2016 prices) 195 8.26 Labor productivity in 2050 in oblasts in scenario VII (thousand UAH, according to 2016 prices) 196 8.27 Labor productivity in 2050 in oblasts in scenario VIII (thousand UAH, according to 2016 prices) 197 9.1 Spatial differentiation of migration inflow rates in Poland in 2004–2017 201 9.2 Spatial differentiation of rates of migration outflows in Poland in 2004–2017 203 9.3 Spatial diversity of migration balances in Poland 205 9.4 The spatial differentiation of relative wages in Poland 206 9.5 Spatial differentiation of rates of migration inflows in Ukraine 209 9.6 Spatial differentiation of the rates of migration outflows in Ukraine 211 9.7 Spatial differentiation of the rates of net migration inflows in Ukraine 213 xviii Maps 9.8 Spatial differentiation of relative wages in Ukraine 214 10.1 Spatial differentiation of taxonomic indicators of economic development of voivodeships 228 10.2 Spatial differentiation of the taxonomic indicators of economic development of oblasts 233 10.3 Spatial differentiation of taxonomic indicators of economic development of voivodeships and oblasts 238 Monika Boli ń ska is a doctoral student at the Faculty of Management and Social Communication at the Jagiellonian University in Krakow (Poland). She is the author and co-author of 14 academic publications, such as Spatial diversity of unemployment in Ukraine (2019), Demo- graphic forecasts and volatility of investment rates vs. labour productiv- ity trajectories (2019), An impact of the variable technological progress rate on the trajectory of labour productivity (2020). Her research is mainly based on regional development and labor market analysis. In her research, she studies economic development in eastern Poland and western Ukraine. Olesia Chornenka is a master of economics at the Jagiellonian University in Krakow. She is the author and co-author of over 15 academic publica- tions, such as Selecting the optimal method to assess the level of financial safety of enterprise (2018), Spatial diversification of Ukraine`s GDP (2019), Spatial diversity of Unemployment in Ukraine (2019). Her main interests include the impact of socio-political factors to the regional development in Ukraine. Nataliia Chugaievska is working on her master’s degree in Economics at the Jagiellonian University in Krakow, Poland, and is also a student of Law at the Polissia National University, Zhytomyr, Ukraine. She is the author and co-author of over 10 academic publications, such as Statis- tical Analysis of the Impact of the Gravitational Effect on the Diversifi- cation of the Economic Development of Ukraine (2017), Legal regulation of higher education for Ukrainian citizens in Ukraine and Poland (2018), Determinants of spatial diversity of wages in Ukraine (2019). Her scien- tific papers are devoted to issues of adaptation of Ukrainian economy to global migration processes in Europe. Svitlana Chugaievska, PhD in Economic (Candidate of Economical Sciences), is Associate Professor of Analysis and Statistics Department at the I. V. Popovich, Polissia National University, Zhytomyr, Ukraine. She is the au- thor and co-author of over 100 academic publications, such as Statistical Contributors