Features of Providing Sustainable Regional Development in the Conditions of Globalization Challenges

Many publications by scientists from all over the world are devoted to ensuring the sustainable development of regions, as the modern challenges of globalization are of paradigmatic importance aimed at the implementation of the concept of sustainable development. Based on the results of the analysis of existing research on the mentioned issue, it is advisable to pay attention to the fact that the first articles appeared back in 1993. In the period from 1993 to 2023, 736 scientific works were published, which are indexed in the international scientometric database Scopus. Every year, the relevance of research on issues of sustainable development is increasing. According to the results of the analysis of publication activity in the period from 2018 to 2023, we note the following trend: 2018 - 49 articles, 2019 - 65 articles, 2020 - 68 articles, 2021 - 54 articles, 2022 - 73 articles, 2023 - 43 articles (Figure 1).

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Figure 1. Map of the publication activity of scientists whose titles include "sustainable development", "region", "globalization" for the period 1993-2023

Source: Systematized by the authors using VOSviewer tools

If we consider the publication activity of scientists by field of knowledge, the following trend should be noted: social sciences (357 articles), environmental sciences (275 articles), business, management, and accounting (143 articles), engineering (122 articles), energy (115 articles), economics, econometrics, and finance (107 articles), etc. The leading countries in terms of publication activity on the issue of sustainable development are: China (112 articles), the United States (95 articles), the United Kingdom (46 articles), India (44 articles), Germany (34 articles), Australia (31 articles), Italy (27 articles), etc.

The authors of the article, Heydari et al. [1] systematized and outlined the main stages of the process of activation and intensification of the use of modern digital technologies for the development of the educational environment in the context of ensuring sustainable development of the region. During the study, the process of ensuring sustainable development of the region was investigated solely in the context of developing the educational environment and its digitalization and modernization. However, in our opinion, it should be taken into account that sustainable development is a complex concept that includes many elements.

The articles by Boiarynova et al. [2] and Popelo et al. [3] are of practical importance, within which the public management of innovative regional development is investigated in the context of sustainability and inclusiveness.

Within the scope of the article by Poveda [4], the main threats to the system of sustainable development and planning of the region from the perspective of ensuring the economic security of the state are identified and analyzed. The authors used a methodology that allows for establishing the dependence and connection between threats and determining the level of the measures' structure to counteract the negative impacts of these threats on a separate region. The scientists have formed a multi-level matrix of the hierarchy of the negative impact of threats on the system of sustainable development and planning of the region in the context of ensuring the economic security of the state.

The scientists Abisheva et al. [5] proposed scientific and methodological foundations for the sustainable development of the region's economy. It was established that the main directions for ensuring sustainable development and competitiveness of the region involve studying economic specializations, conducting a comprehensive study of the socio-economic situation, examining the operational conditions of strategic industrial structures, and identifying factors influencing the region's sustainable development.

The authors Pivnyak et al. [6] argue that the concept of sustainable development, which seeks a balance between technological advancements, economic growth, social equity, and ecological considerations, is becoming an increasingly relevant environmental issue owing to the depletion of natural resources and the escalation of environmental issues. They defined and substantiated strategic underpinnings for the development of engineering education focused on creating a unified international platform for the sustainable use of the world's natural resources.

The article by Huan et al. [7] argues that the interplay between the Sustainable Development Goals (SDGs) is critical to prioritizing these goals and accelerating overall progress. The study focuses on Asia’s Water Tower region, which poses significant challenges to progress towards the SDGs in Asia and globally. The researchers assessed the spatial and temporal variations in the interactions and priorities of sustainable development in the region based on correlation coefficients and network analysis.

The scientists Tulchynska et al. [8] and Kryvda et al. [9] presented a study on the harmony of ecological development in regions amidst the formation of a circular economy. According to the authors, this made it possible to identify a balance in the state of the environment that supports the advancement of the circular economy towards achieving sustainable development goals. The role of eco-industrial parks within the circular economy is also examined.

The study by Anusha et al. [10] conducted a land suitability analysis, assessing the impact of whether a specific parcel of land is appropriate for a given use. The scientists consider the study of land suitability for growing agricultural crops a crucial contemporary step in formulating strategies for sustainable land use to enhance land potential. As a result of the study, a conceptual approach to land suitability analysis is proposed, which contributes to increasing the green cover and addressing environmental issues in the pursuit of sustainable development.

In the study by Huan et al. [11], the authors identified five sustainable development goals related to livelihoods, energy, ecosystem, and water. These goals have been shown to be closely interconnected, with progress in these areas being a substantial stride towards the achievement of other SDGs. Upon compiling the results, the authors prioritized 24 goals to provide evidence-based support for identifying holistic and synergistic actions at various scales. Notably, the following goals were identified as priorities: 2.3 - agricultural productivity, 7.1 - access to modern energy services, 7.2 - increased use of renewable energy sources, 15.2 - sustainable management of forests, 15.5 - conservation of mountain ecosystems, 15.6 - fair sharing of the benefits arising from the utilization of genetic resources, as well as the mobilization of resources.

The authors Aragonés-Beltrán et al. [12] highlight that when a regional government considers the possibility of investing in the sustainable development of its region, it must take into account the real needs of the population and the achievement of the Sustainable Development Goals. The scientists believe that identifying these needs should involve the support of local stakeholders from various social groups.

According to the results of the studies by Novomlynets et al. [13], Shaposhnykov et al. [14], and Dubyna et al. [15], the characteristics of enterprises' foreign economic activities under modern conditions and the incorporation of the sustainability concept are discussed. The authors present a vision for a VAT administration ecosystem tailored to e-commerce transactions that aligns with the sustainable development goals.

In the paper by Akomaning et al. [16], the authors analyze the contribution of non-wood forest products to the economic development of the Eastern region and the achievement of the SDGs in Ghana. The study concludes that non-timber forest products significantly contribute to the economic development of the Eastern region and the country through employment and direct taxes.

According to scientists Wang et al. [17], progress in global efforts to achieve the Sustainable Development Goals is increasingly hampered by the degradation of critical and fundamental resources such as water, food, energy, and ecosystem services. The study identifies 37 relationships and clarifies the nature of their interactions, 12 of which are significant and directly related to the sustainable development goals.

In the scientific papers by Tulchynska et al. [18], Popelo et al. [19], and Garafonova et al. [20], modeling the harmonious economic development of regions within the context of sustainable development was carried out. As a result, regions were grouped and ranked according to the specified indicator, and cartographic analysis was conducted. The authors researched the main principles, methods, tools, and stages of greening production. They proposed a methodological approach for evaluating greening production using standardization methods, complex indicators, and comparison. A list of recommended measures for enterprises to green their production in the context of implementing sustainable development goals has been created.

In the research conducted by Li et al. [21], the authors analyzed the importance of promoting sustainable development in resource-dependent regions, noting it as a significant challenge for policymakers. They suggest that investigating the impact of sustainable development strategies on income inequality is appropriate. The study reveals that reducing dependence on natural resources is a potential and vital mechanism, as shown by the mediation effect model.

Annamalaisamy and Vepur Jayaraman [22] studied the effects of global climate change, which has already caused noticeable negative impacts on the ecological system. They highlight the challenge for every country to achieve further economic growth without compromising environmental quality. The authors examined the single, combined, and interrelated effects of income growth, foreign direct investment inflows, renewable energy, and regulatory quality on climate change. They discuss climate change-related policy interventions by various economies in the Asia-Pacific region aimed at achieving the Sustainable Development Goals.

However, despite the existing scientific works, the study of the features of ensuring sustainable development of regions through the impact study of its main components in the context of globalization challenges is extremely relevant and timely.

In accordance with the proposed stages, we are testing the proposed approach. The Kiev region and the city of Kyiv were chosen for the calculations. Statistical data were taken from the State Statistical Service of Ukraine for 2013-2021, for 2022 statistical data in connection with the state of war in Ukraine as a result of military operations on the territory of the state have not been made public. All calculations were made using the Madhcad software.

The Kiev region and the city of Kyiv were chosen to test the approach of using the matrix game because they have approximately similar indicators of sustainable development. Sustainable development of each region is characterized by six components, which are taken as a basis for identifying the most influential factor of sustainable development of the region with a constant comparison of integral indicators using the matrix game method.

The authors of the study suggest using integral indices as input data when using the matrix game method to determine the strategies of sustainable development. Integral indices are determined using the multiple regression method. Multiple regression makes it possible to substantiate the correctness of the selected evaluation criteria of the regional development, the level the influence of the dimensionality of the evaluation indicators, as well as to identify the influence coefficients when calculating integral indices.

Calculations of the integral indices of the components of sustainable development and the complex integral index are presented in the Table 2.

Table 2. The value of the integral indices of the components of sustainable development and the complex integral index of sustainable development of the regions selected for approval for 2013-2021

Source: Calculated by the authors according to the proposed methodical approach

According to integral indices of economic and ecological development, the Kiev region has greater values than the city of Kyiv. The comprehensive integral index of sustainable development of the city of Kyiv and the Kiev region is presented in Figure 3.

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Figure 3. Comprehensive integral index of sustainable development of the Kiev region and the city of Kyiv for 2013-2021

Source: Calculated by the authors

The presented visualization of the integrated index of sustainable development of the city of Kyiv and the Kiev region demonstrates that in 2013, 2017 and 2020-2021 the values of the integrated index of sustainable development in the Kiev region were greater than the values of the integrated index of the city of Kyiv. The average arithmetic value of the complex integral index of sustainable development of the Kiev region is slightly higher than the complex integral index of the city of Kyiv.

The performed calculations provide an opportunity to carry out further calculations. For this, we single out the most influential evaluation indicators found in the integral indexes of the components of sustainable development, which were calculated as weighting factors using the correlation analysis. The most influential evaluation indicators for the selected regions for approval are presented in the Table 3.

From the data presented in Table 3, it can be noted that the most influential factors in four components of sustainable development are the same in the Kiev region and the city of Kyiv, and in two they are different. In further modeling using the matrix game to determine the most optimal strategy for sustainable development of the regions in the face of globalization challenges, these indicators, which are the most influential according to the results of the correlation analysis, take part. Further matrices for the matrix game are compiled on the basis of the singled out most influential indicators. In general, the matrix should have the following form:

$r=\left[\begin{array}{cccccc}0 & \frac{x_3}{x_{11}} & \frac{x_{19}}{x_{11}} & \frac{x_{18}}{x_{11}} & \frac{x_{25}}{x_{11}} & \frac{x_{12}}{x_{11}} \\ \frac{x_{11}}{x_3} & 0 & \frac{x_{19}}{x_3} & \frac{x_{18}}{x_3} & \frac{x_{25}}{x_3} & \frac{x_{12}}{x_{11}} \\ \frac{x_{11}}{x_{19}} & \frac{x_3}{x_{19}} & 0 & \frac{x_{18}}{x_{19}} & \frac{x_{25}}{x_{19}} & \frac{x_{12}}{x_{19}} \\ \frac{x_{11}}{x_{18}} & \frac{x_3}{x_{18}} & \frac{x_{19}}{x_{18}} & 0 & \frac{x_{25}}{x_{18}} & \frac{x_{12}}{x_{18}} \\ \frac{x_{11}}{x_{25}} & \frac{x_3}{x_{25}} & \frac{x_{19}}{x_{25}} & \frac{x_{18}}{x_{25}} & 0 & \frac{x_{12}}{x_{25}} \\ \frac{x_{11}}{x_{12}} & \frac{x_3}{x_{12}} & \frac{x_{19}}{x_{12}} & \frac{x_{18}}{x_{12}} & \frac{x_{25}}{x_{12}} & 0\end{array}\right]$                       (7)

The matrix is built on the basis of taking into account the order of influence of the evaluation indicators on the integral index from the most influential to the least influential indicators of the components of sustainable development. The upper triangular values in the matrix (see formula 7) are mirrored in the lower triangular part of the matrix. Each element of the matrix represents the ratio of the average values of the most influential evaluation indicators to decrease their influence.

Table 3. The most influential evaluation indicators in the integrated indices of the subsystems of sustainable development and the most influential components of sustainable development in relation to the complex integral index

Source: Calculated by the authors

As a result of substituting the values of the most influential evaluation indicators, we obtain a matrix of the following type:

$r=\left[\begin{array}{ccccccc}0 & 1.161 & 1.110 & 0.747 & 0.883 & 0.699 \\ 0.862 & 0 & 0.957 & 0.643 & 0.761 & 0.603 \\ 0.901 & 1.045 & 0 & 0.673 & 0.796 & 0.630 \\ 1.339 & 1.554 & 1.487 & 0 & 1.183 & 0.937 \\ 1.132 & 1.314 & 1.257 & 0.845 & 0 & 0.792 \\ 1.430 & 1.659 & 1.587 & 1.068 & 1.263 & 0\end{array}\right]$                  (8)

Using the principle of the matrix game method in which two regions participate makes it possible to determine the best strategy for each participant of the game. In this case, the player "A" is the Kiev region, and the player "B" is the city of Kyiv. According to the matrix (see Eq. (8)) given above, we get matrices for the Kiev region and the city of Kyiv.

At the same time, matrix A is an inverse matrix:

$A=r^{-1}$                   (9)

Matrix B is the inverse transposed matrix:

$A=\left(r^T\right)^{-1}$            (10)

Eqs. (11)-(12) give calculations of the matrices:

$A=\left[\begin{array}{cccccc}-0.8 & 0.232 & 0.222 & 0.149 & 0.177 & 0.140 \\ 0.172 & -0.8 & 0.191 & 0.129 & 0.152 & 0.121 \\ 0.180 & 0.209 & -0.8 & 0.135 & 0.159 & 0.126 \\ 0.268 & 0.311 & 0.297 & -0.8 & 0.237 & 0.187 \\ 0.226 & 0.263 & 0.251 & 0.169 & -0.8 & 0.158 \\ 0.286 & 0.332 & 0.317 & 0.214 & 0.253 & -0.8\end{array}\right]$                (11)

$B=\left[\begin{array}{cccccc}-0.8 & 0.172 & 0.180 & 0.268 & 0.226 & 0.286 \\ 0.232 & -0.8 & 0.209 & 0.311 & 0.263 & 0.332 \\ 0.222 & 0.191 & -0.8 & 0.297 & 0.251 & 0.317 \\ 0.149 & 0.129 & 0.135 & -0.8 & 0.169 & 0.214 \\ 0.177 & 0.152 & 0.159 & 0.237 & -0.8 & 0.253 \\ 0.140 & 0.121 & 0.126 & 0.187 & 0.158 & -0.8\end{array}\right]$                 (12)

As a result of the calculations of the matrices given in Eqs. (12)-(13) for the values of the Kiev region and the city of Kyiv, we obtain the following results: |A|=-0.2; |В|=-0.2.

This makes it possible to determine the strategies of sustainable development for regions in the  face of globalization challenges, namely the strategies: Q strategy - for region "A" and P strategy - for region "B":

$Q=A \cdot J ; P=B \cdot J$          (13)

where, Q, Р – according to the strategy of sustainable development for selected regions; А, В – respectively, the Kiev region and the city of Kyiv; J – the price of the game modeled in the matrix game is a certain conditional indicator that reinforces the chosen strategy for the region. The cost of the game (J) is modeled before the emergence of aggregate unit strategies, since otherwise the condition would not hold: $\sum Q_i=1 ; \sum P_i=1$.

Modeling the J sequence makes it possible to determine the optimal sustainable development strategy for a specific region. That is, to find exactly that evaluation indicator that makes it possible to improve sustainable development, which is presented in the form of a complex integral index of sustainable development of the region under the conditions of globalization challenges.

Calculations carried out by the authors using the Madhcad software made it possible to determine J and calculate Q, P - sustainable development strategies for the Kiev region and the city of Kyiv based on the results of simulation, namely:

$Q=\left(\begin{array}{c}0.082 \\ -0.024 \\ 0.006 \\ 0.342 \\ 0.183 \\ 0.411\end{array}\right) ; P=\left(\begin{array}{c}0.227 \\ 0.374 \\ 0.328 \\ -0.003 \\ 0.121 \\ -0.046\end{array}\right) ; J=0.684$

Therefore, the use of the matrix game made it possible to obtain certain strategies according to which the region can obtain the most positive results in sustainable development, which makes it possible to illustrate this through the value of the complex integral index of sustainable development of the region in the context of globalization challenges.

As a result of the calculations, the most attractive strategy for the Kiev region, which acted as player "A" in the matrix game, is to increase the number of innovatively active enterprises in industry (in the calculations, this was an indicator of x₁₂). The indicator of innovative and active enterprises belongs to the index component of the innovative and entrepreneurial development (I₃).

For the city of Kyiv, which acted as a "B" player, the most important indicator for ensuring the growth of the comprehensive integrated index of sustainable development was the indicator of direct investments per capita (estimate indicator x₃). The indicator of direct investment per capita refers to the component of economic development (I₁).

If the Kiev region directs efforts to increase the number of innovative and active enterprises, and the city of Kyiv to increase direct investments, then this will lead to the greatest positive effect in terms of sustainable development, namely, it will contribute to the increase of the complex integral index of sustainable development of these regions in the face of globalization challenges.

In Table 4, the values of integral indices and the complex integral index of sustainable development in the context of globalization challenges according to calculations and modeling carried out using the matrix game method are presented.

For the Kiev region, according to the results of the matrix game, the most influential indicator of sustainable development in the conditions of globalization is the evaluation indicator of the number of innovatively active enterprises, which belongs to the third component of sustainable development and is determined by the integral index of innovative and entrepreneurial development (I₃). Isolation of the most influential indicator made it possible to simulate possible changes in sustainable development of the region with the help of the Madhcad software, provided the number of innovative and active enterprises increases. These changes are reflected in the simulated values of the integral index of innovative and entrepreneurial development of the Kiev region and the complex index of sustainable development.

Table 4. Value of integral indicators of the components of sustainable development and the complex integral index of sustainable development for 2013-2021

Source: Calculated by the authors according to the proposed methodical approach

Simulation modeling was also carried out for the city of Kyiv, but in relation to the economic development index, since the most influential indicator according to the results of the matrix game turned out to be the volume of direct investments.

In Figures 4-5, the dynamics of the complex integral index for the Kiev region and the city of Kyiv are presented.

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Figure 4. Calculated and modeled complex integral index of sustainable development of the Kiev region for 2013-2021

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Figure 5. Calculated and modeled complex integral index of sustainable development of the city of Kyiv for 2013-2021

The presented results of the calculated and modeled complex integral indices of sustainable development for the Kiev region and the city of Kyiv (see Figures 4-5) clearly demonstrate positive dynamics of the modeled complex integral indices and their positive deviation from the calculated complex integral indices of sustainable development of these regions.

It should be noted that the simulated complex integral index for the Kiev region shows a smaller positive increase in relation to the increase of the simulated complex index of the city of Kyiv. This can be explained by the fact that the Kiev region is the leader and takes the first place in the rating of the comprehensive integrated index of sustainable development in Ukraine, which was calculated by the authors according to this methodological approach. Under such conditions, for greater growth, it is necessary to use a greater amount of resources and make greater efforts to obtain an increase in the comprehensive index of sustainable development.

Thus, the approbation of the methodical approach proposed by the authors to ensure sustainable development of regions in the conditions of globalization makes it possible to assess the state of sustainable development, as well as the influence of the most influential factors on changes in the complex integrated index of sustainable development of the region in the process of solving strategy matrices using the matrix game approach.