Investments related to the economy of Odessa Region in dynamics, th. Usa

Країна	2007 рік	2008 рік	2009 рік	2010 рік		2011 рік
	(тис. дол. США)
Республіка Молдова	18316,8	15334,1	15499,4	15697,0	15000
Румунія	312,3	1326,7	1883,9	1891,2	2236,1
ВСЬОГО	18629,1	16660,8	17383,3	17588,2	17236,1

To calculate the quantitative dependence of the level of economic development of the region of its cross-border cooperation we should use the method of correlation-regression analysis.

To construct the first of correlation-regression model should be used as the dependent variable is the main indicator of development of the regional economy - the gross regional product, and as independent variables - indicators of cross-border cooperation: foreign direct investment from neighboring countries and the export of goods and services to these countries and imports of goods and services from them.

To calculate the inverse relationship, ie, to determine the effect of factors that directly affect the implementation of cross-border cooperation in the economic sphere, it is appropriate to score GRP has as an independent variable along with the rate of foreign direct investment in the region. As the dependent variable supports the export of goods and services of the Odessa region in Romania and the Republic of Moldova.

First equation of correlation-regression model is:

y = 3039,1 +179,5 x₁ +2,8 x₂-1, 9x₃.

The equation shows that the increase of foreign direct investment in the region of $ 1 million. United States, its gross regional product will grow by 179.5 million U.S. dollars at constant values ​​of other indicators of growth in exports of goods and services to Romania and Moldova to $ 1 million. U.S. will boost GRP area of ​​2.8 million. U.S. also in regular values ​​of other independent variables, increased imports of goods and services in the region of $ 1 million. U.S. reduces the gross regional product by 1.9 million. U.S. at constant other factors of influence.

The equation of the second correlation-regression model is:

y = 1151,09 +0,085 x₁ +29,21 x₂.

Table 6.

The Euroregoin “Lower Danube” economic profile

Region	Size: territory and population	Economic profile
Odessa Region	33,3 th. sq. km, 2394,7 th. people.	- Petrochemical Industry, - Transport, - Agriculture, - Tourism.
Galati County (Romania)	4,6 th. sq. km, 619,55 th. people..	- Metallurgy, - Construction, - Shipbuilding, - Food and light industry, - Transport, - Agriculture, - Fishing.
Tulcea County (Romania)	8,49 th. sq. km, 265,34 th. people.	- Agriculture, - Fishing, - Light industry, - Metallurgy, - Transport.
Brejla County (Romania)	4,76 th. sq. km 373,17 th. people.	- Agriculture, - Fishing, - Light industry.
Cahul area (Republic of Moldova)	1,5 th. sq. km 119,2 th. people.	- Agriculture, - Foods and textiles.
Cantemir area (Republic of Moldova)	0,9 th. sq. km 61,3 th. people.	Agriculture
Euroregion “Lower Danube”	53,55 th. sq. km, 3833,26 th. people.	- Agriculture, - Fishing, - Light industry, - Chemical industry, - Construction, - Metallurgy, - Transport.

The equation shows that at constant values ​​of another variable and the growth of gross regional product of the Odessa region of 1 million. U.S. exports of goods and services to Romania and Moldova will increase by 85 thousand dollars, and with increasing amounts invested by one of the countries in the regional economy of funds to $ 1 million .. U.S. exports of goods and services will increase by 29.21 million U.S. dollars.

As indirect methods of evaluating the effectiveness of cross-border cooperation system was used with four groups of indicators.

The first group of parameters that characterize the CBC carried Odessa area from adjacent regions of Romania and Moldova, a general statistical data that helps us understand how the overall degree of Euroregional cooperation in the region (see Table. 6).

The second group of indicators characterizing the socio-economic development of the Odessa region and its relationship with cross-border cooperation with neighboring countries in Odessa region.

Figure 3. Odessa Gross Regional Product

Figure 4. Odessa Region Foreign Trade

Figure 5. Foreign Investments into Odessa Region

As for performance, which directly characterize the CBC, you should conclude that a slight decline in economic cooperation with Romania in Odessa Oblast and the Republic of Moldova by reducing the volume of these investments and reduction of exports to these goods and services.

The third group of indicators is the data on implementation of joint projects within the Euroregion "Lower Danube" and involved for the funds of international organizations. In general, projects of international technical assistance Odessa region received 11 million euros.

The fourth group of indicators - is data about the development of border infrastructure within the Odessa region operates 57 check-points and 5 control points (of 62), but on the permanent basis built only 32 points bypass.

Table 7.

Traffic across the border of the Odessa region

Year	Passengers traffic, persons	Wagons traffic, units		Cars traffic, units
		Passengers’	Cargo	Passengers’	Cargo
2009	9455358	1919	3791	1694393	162071
2010	9512802	872	2831	1640352	165805
2011	9895358	1915	3274	1624269	176164

That state of development of border infrastructure affects the development of cross-border cooperation in the region.

Summarizing the analysis of the effectiveness of cross-border cooperation with neighboring Odessa Oblast region of Moldova and Romania should be noted minor efficiency of such interaction caused by the fact that cross-border cooperation is carried out mainly in the cultural sphere and in environmental protection, a significant decline in border infrastructure and weak foreign trade communications links of other members of the Euroregion "Lower Danube".

Table 8.

The ways of organizational component of the CBC Odessa region improvement

Direction	Possible ways	Steps	Results
The first direction. Improving euroregional CBC forms	Reforming the organizational structure of the Euroregion "Lower Danube"	- The ongoing development of regional representatives in the commission of the business activities; - A joint tripartite body of investment at the Association of CBC "Lower Danube"; - Development and joint financing of major facilities of border infrastructure.	- Increasing the efficiency of the Euroregion "Lower Danube" and CBC Association "Euroregion Lower Danube"; - Increasing investment attractiveness of the participants Euroregion, increasing FDI through joint cooperation; - Development of border infrastructure.
	The formation of bilateral Euroregional associations with neighboring regions	Create a small bilateral Euroregional associations for cooperation in identified priority sectors.	Improving the effectiveness of CBC due to the greater mobility of a small association
The second direction. Search for alternative forms of CBC	Promoting a cross-border clusters based Euroregional formations	The implementation of cluster policies and programs promoting the creation of triangular cross-border clusters.	Improving the effectiveness of CBC growth in FDI, exports and foreign trade of the region, increasing the GRP.

The third chapter called "Perspectives of cross-border cooperation Odessa region" discusses the possibility of improvement of the organizational component of the CBC suggested possible ways to overcome the negative factors of cross-border cooperation and developed by successive steps to improve implementation of the CBC area.

Our reasoning for solving these problems include the following positions:

• requires gradual harmonization of Ukrainian legislation with EU law. This is consistent with the interests of Romania as an EU member, the Republic of Moldova, which historically has close ties with Romania, and Ukraine, which aspires to join the Community;

• necessary to establish close diplomatic dialogue between official Kyiv and Chisinau and Kyiv and Bucharest to resolve territorial disputes;

• Odessa authorities should facilitate investment from neighboring countries in the regional economy and promote the release of regional producers to the markets of Romania and Moldova. This direction of problem solving minor economic ties between the Odessa region and adjacent regions of neighboring countries is possible by creating areas of priority development and facilitating the creation of cross-border clusters will be discussed below.

Solving the problem of inertia of local government is a gradual administrative and legal reforms will be to transfer the required set of functions in the management of their own regional economy. It is also advisable to promote the national level institute CBC as a system that helped to create the right idea about this kind of activity - from the development of guidance for local authorities at the level of villages and district administrations and ending the development of a national concept of cross-border cooperation.

The need to increase the efficiency of cross-border cooperation in trade and finance charts showing trends lines GRP, exports of goods and services to neighboring countries, imports of goods and services, foreign trade with neighboring countries in the Odessa region and FDI from Romania and Moldova to the economy region.

Figure 7. The GRP trend line

Figure 8. The foreign investments trend line

Figure 9. The exports and imports trend lines

Figure 10. The foreign trade trend line

Table 9.

The perspectives of GRP and the key indicators of CBC of Odessa Region

Indicator	2011 year Mln USD	2012 year Mln USD	2013 year Mln USD	2014 year Mln USD	Deviation
					Absolute, mln. USD	Percentage, %
GRP	6455	7017,6	7744,1	8679	834,3	13,1
Investments	17,2	18,7	19,4	20,97	0,44	2,5
Exports	79,8	95,9	93	90,6	28	29,6
Imports	286,1	239	246,1	255,1	57,5	30,3
Foreign balance	365,9	343	332	345,7	66,7	22,7

These trends can emphasize the need to use these means to enhance cross-border cooperation:

a) promotion of foreign direct investment through joint events (fairs, conferences and investment forums) to inform the global business community about available in Euroregion "Lower Danube" investment projects;

b) promotion of export-oriented markets of neighboring countries, and import-production in the Odessa region by creating conditions for business development in the region through areas of priority development;

c) promote the establishment of stable trade relations between the Odesa region and the adjacent border regions of neighboring Romania and Moldova by creating cross-border clusters in priority sectors, which may be used only by the comprehensive cluster policy.

We propose to establish a joint Ukrainian-Romanian-Moldovan program funding projects that involve cross-border links between enterprises. This funding would represent an investment in the development of border infrastructure and facilitate the formation of international relations between residents of Romania, Ukraine and Moldova as a prerequisite for making cross-border clusters.

The process of using such programs as a tool of cross-border cluster policy reflected in Fig. 11.

The feasibility of creating cross-border clusters in leading industries of the Odessa region and allied border regions of Romania and the Republic of Moldova shows Table 10.

Table 10.

Perspectives for GRP Grouth

Year	GRP, mln USD (according the trend line)	GRP, mln USD (in a case of cluster policy implementation)
2011	6455
2012	7018	7012
2013	7744	7807
2014	8679	8760

.

As we see, to encourage cross-border clusters in the Odessa region promotes the growth of gross regional product of the region as a leading indicator of economic development of the region, as appropriate to assume that a consistent policy of promoting the formation of cross-border clusters will increase the effectiveness of CBC.

In the fourth section, "Overview of the Main Directorate of Foreign and European Integration of Odessa regional administration. Health and safety in emergency situations, "explores the fundamentals of the Main Directorate and its role in the CBC area, and studied the issue of labor in the region and legal regulation of life safety.