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Modeling the Development Status of Territorial Communities in Kharkiv Region
Oriekhova T. Y., Chagovets L. O.

Oriekhova, Tetiana Ye., and Chagovets, Liubov O. (2025) “Modeling the Development Status of Territorial Communities in Kharkiv Region.” Business Inform 11:246–255.
https://doi.org/10.32983/2222-4459-2025-11-246-255

Section: Economic and Mathematical Modeling

UDC 352.9

Abstract:
The article analyzes the current state of development of territorial communities in Kharkiv region and identifies key factors affecting their economic capacity. Demographic indicators, the structure of entrepreneurial activity, and budgetary indicators of 14 territorial communities in Kharkiv region for the period 2020–2024 are analyzed. The results of the study revealed that in most rural or settlement communities, the agricultural sector predominates, while communities with more developed infrastructure are characterized by active entrepreneurial activity in trade, services, and industry. The analysis of financial indicators, particularly the budget, showed uneven financial conditions among the territorial communities. For example, in 2022, a sharp decline in revenues was recorded. At the same time, since 2023, there has been a trend towards restoring the financial capacity of the communities. At the final stage of the study, a model was developed to group the territorial communities of Kharkiv region according to their level of development, implemented in RStudio environment and using unsupervised machine learning methods – agglomerative and iterative. The clustering results identified two clusters: more developed communities with high economic activity and financial potential, and less developed communities that require stimulation of entrepreneurial activity, investment attraction, and the development of socioeconomic infrastructure. Based on these results, recommendations were formulated to improve resource management efficiency, strengthen financial capacity, and ensure sustainable development and enhanced competitiveness of the territorial communities. The study results can be used as a tool to support managerial decisions in the context of contemporary challenges.

Keywords: territorial communities, cluster analysis, community development assessment, modeling, sustainable development, community budgets.

Fig.: 9. Tabl.: 1. Bibl.: 25.

Oriekhova Tetiana Ye. – Masters Student, Simon Kuznets Kharkiv National University of Economics (9a Nauky Ave., Kharkiv, 61166, Ukraine)
Email: [email protected]
Chagovets Liubov O. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of Economic Cybernetics and Systems Analysis, Simon Kuznets Kharkiv National University of Economics (9a Nauky Ave., Kharkiv, 61166, Ukraine)
Email: [email protected]

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