THE ESSENCE AND NECESSITY OF DIVERSIFYING THE STRUCTURE OF THE REGIONAL ECONOMY
Keywords:
regional economy, economic diversification, structural transformation, sectoral diversification, economic resilience, competitiveness, sustainable development, investment attraction, innovation, Herfindahl-Hirschman Index, entropy indexAbstract
This article examines the essence and necessity of diversifying the structure of the regional economy in the context of globalization and increasing economic uncertainty. The study highlights that excessive dependence on a limited number of industries or sectors makes regional economies vulnerable to external shocks and limits sustainable development opportunities. Diversification is considered as a key factor in enhancing economic stability, increasing competitiveness, and ensuring balanced regional development. The paper analyzes theoretical approaches to structural diversification and emphasizes the role of sectoral restructuring, innovation development, and investment attraction in strengthening regional economic resilience. Particular attention is given to the use of modern analytical tools, including Herfindahl-Hirschman Index and Entropy index, for assessing the level of diversification. The study concludes that effective diversification policies contribute to the expansion of production capacities, development of new industries, improvement of employment levels, and integration into global value chains, thereby ensuring long-term sustainable growth of regional economies.
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