The Impact of Digital Technologies on the Formation of Regional Economic Policy in the Context of Decentralization
Lupak R. L., Nakonechna N. V.

Lupak, Ruslan L., and Nakonechna, Nataliya V. (2026) “The Impact of Digital Technologies on the Formation of Regional Economic Policy in the Context of Decentralization.” The Problems of Economy 1:132–140.
https://doi.org/10.32983/2222-0712-2026-1-132-140

Section: Regional economy

UDC 332.1(477.42):004

Abstract:
The article reviews the key functions of regional economic policy – regulatory, stimulating, redistributive, coordinating, social-compensatory, and control. For each function, the advantages and disadvantages of using digital technologies in shaping such policy under decentralization are identified. Emphasis is placed on how digital technologies facilitate the automation of management processes, enhance the transparency and accountability of decisions by regional authorities, support prompt responses to violations, and contribute to the efficient allocation of local budgetary resources. The risks and limitations of digitalization are highlighted: digital inequality, high costs of digital infrastructure, challenges in integration, cybersecurity risks, technocratization of processes, and the need for highly skilled specialists. For each of the functions of regional economic policy, key digital technologies, their practical applications, areas of impact, and specific expected results are also provided. The importance of implementing electronic registries, electronic document management, digital open data and support platforms, investment portals, predictive and analytical systems, electronic budgeting, big data analytics, data exchange systems, integrated information resources, e-democracy technologies, online services, digital feedback channels, analytical dashboards, and GIS technologies is noted. It was concluded that digitalization provides the improvement of regulatory mechanisms, reduction of barriers for business and strengthening of institutional trust, activation of entrepreneurial activity and increase in investment attractiveness, enhancement of budget policy efficiency, reduction of interterritorial disparities, coherence and comprehensiveness of managerial actions, increase in social cohesion and inclusiveness, reduction of social tension, improvement of monitoring and controllability of the region’s socioeconomic development.

Keywords: regional economic policy, regional economy, region, territorial community, digital technologies, digitalization, public administration, decentralization, local self-government bodies, economic development.

Fig.: 2. Bibl.: 16.

Lupak Ruslan L. – Doctor of Sciences (Economics), Professor, Professor, Department of Economics, Lviv University of Trade and Economics (10 Tuhan-Baranovskoho Str., Lviv, 79005, Ukraine)
Email: economist_555@ukr.net
Nakonechna Nataliya V. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of Information Technology Security, National University «Lviv Polytechnic» (12 Stepana Bandery Str., Lvіv, 79013, Ukraine)
Email: nakonnat@gmail.com

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