METHODOLOGICAL ASPECTS OF ASSESSING THE EFFECTIVENESS

OF REGIONAL INDUSTRIAL STRUCTURE

Kamala Tofiq Shukur Suleymanova
kacy119@gmail.com
«Naser Indusrial Engineering», Amman Hashemi Kingdom of Jordan

A feature of transformational processes is the scale of the accompanying shifts. The

comparative economic efficiency of various industrial sectors is changing, leading to a flow
of capital and labor from one production to another, resulting in profound and diverse
structural shifts in industry. Therefore, defining priorities for sectoral changes in the
regional industrial structure becomes especially relevant.
The existing trends in the development of Azerbaijan's economy require a deeper
investigation of the regional industrial structure due to the need for adaptation to changing
conditions. The regional structure of industry determines the economic efficiency and
social indicators of the region, as well as the region's role in the country's economy. It is
known that for many years, an industry-based organizational principle was used, where
certain industries settled in specific territories based on resource potential. Today, there
are other approaches to regional specialization that contribute to production diversification,
effective use of capacity, human and financial potential, and the dissemination of new
knowledge and technological solutions.
The essence of these approaches includes the following:
- Forecasting the prospects for economic development and specialization sectors of
the region;
- Selecting a list of specialization sectors for the region based on competitive
advantages;
- Choosing a priority nomenclature of specialization for each of the selected sectors;
- Developing a list of services on which the region will specialize.
However, to address these tasks, it is advisable to define the methodological aspects
that contribute to a more accurate rational identification of the prospects for the economic
and social development of the region based on existing competitive advantages.
As a result of the measures taken by the Government, a structural transformation is
being observed towards sectors producing final products. Strengthening this direction,
while continuing the leadership of extractive industries, requires enhancing the process of
reducing the share of raw material sectors by increasing the technical potential of
enterprises directly related to scientific and technological progress (NTP). It should also be
noted that structural transformations cannot rely solely on this direction. Structural
transformations encompass a large range of methodological problems that ensure the
practical resolution of regional issues at a new quality level:
- Methodological justification of the economic proportions of industrial development in
the region;
- Identifying factors for the rational development of industries and an acceptable
relationship between them;
- Methodological support for determining optimal options for the structure of the
region's industry;
- Identifying necessary structural changes in the region's industry.
 The new situation in the regions objectively requires increasing the competitiveness
of industries not only in domestic but also in external markets. The scientific justification for
solving these issues in the regional industrial structure requires methodological support.
Naturally, solutions are possible based on the application of economic laws of
development and the specifics of their application in specific conditions. Thus, they should
originate from the demands of the law of prices and the law of balance between supply
and demand, which emphasize the need to reflect in the industrial structure the
requirement for equivalence in the exchange of products and services on regional,
interregional, and external markets, ensuring the equality of supply and demand. This will
create conditions to minimize risks for industry and facilitate the growth of its technical and
economic potential while improving social conditions. This is the essence of the theoretical
foundation for developing methodological provisions for structural changes in the region's
industry.
Defining development prospects is advisable considering the above to create a new
qualitative appearance, characterized by an increased regional aspect of socio-economic
development. This contributes to a justification of the mechanism for structural changes
aimed at overcoming negative structural shifts and creating foundations for a market-type
structure. It can be said that creating in a specific region such productions, in such
quantities and proportions, would satisfy demand in interregional and external markets.
Another important methodological task of structural transformations is to elucidate the
mechanism that resolves the contradictions facing the structural tasks of the industry.
Methodological guidelines for industry should reflect development factors such as
social needs, technical capabilities, and economic feasibility. The goal is to achieve the
greatest result with the least cost while minimizing transition time from the existing
structure to the new industrial structure, ensuring the creation of favorable conditions for
the operation of the entire economic system.
Quantitative and qualitative characteristics of the regional industrial structure from a
methodological perspective are expressed in a system of indicators: produced goods,
investments, main production assets, material resources, and the total and sectoral
workforce. These indicators qualitatively characterize the region, which is especially
important for the current situation in the economy. It is methodologically reasonable to
study the temporal factor, i.e., to use indicators like absolute growth, growth rates
(decline), growth acceleration, average growth rates, average growth acceleration,
average indicators, leading coefficients, etc., in the methodological development of the
industrial structure.
Calculating these indicators allows for a quantitative assessment of trends in
qualitative changes in the industrial structure and illustrates the evolutionary development
of the structure, cyclically repeating patterns of its development. Patterns can be identified
using the coefficient of unevenness (the ratio of a specific indicator to its average value
over the considered period). For example, the volume of production for 2020 compared to
the average volume of production over 5 years. This shows the intensity of changes
occurring in the structure and characterizes the identified patterns.
Based on the conducted research, certain conclusions and proposals can be made:
- Differences in regional conditions are a very important circumstance; therefore,
there cannot be a single economic development strategy for all regions. The most
significant factors for developing regional economies include the established production
specialization of regions, the capacity and accessibility of markets for goods produced in
the region, including intra-regional markets, national markets, export markets, etc.
- Competitiveness can be represented as a combination of economic, political,
financial, socio-cultural, ethnic, organizational-legal, and geographical factors and
characteristics inherent to the region, forming the basis for determining the attractiveness
of capital investment.
Keywords: sector priorities, regional industrial structure, structural changes,
competitiveness, economic development, methodological aspects.

REFERENCES
1. Belobragin V.Ya. Regional Economics: Quality Problems. - Moscow, 2001. - 281 p.
2. Butov V.I., Ignatov V.G., Ketova N.P. Foundations of Regional Economics - Rostov-on-
Don, 200.
3. Djabieva R.M. Socio-economic Development of the Azerbaijan Republic During
Independence - Baku, 2005.