STRUCTURAL TRANSFORMATIONS OF THE REGIONAL ECONOMY UNDER CONDITIONS OF INSTABILITY: A METHODOLOGICAL APPROACH TO ASSESSMENT AND IDENTIFICATION OF DISPROPORTIONS

Abstract

Structural transformations of regional economies have become increasingly important under conditions of economic instability, technological change, investment constraints and growing spatial disparities. Changes in the sectoral composition of regional economies affect employment, investment activity, entrepreneurial development, technological modernization and the overall capacity of regions to adapt to external and internal shocks. At the same time, structural changes may produce both positive effects, associated with diversification and modernization, and negative consequences, including sectoral imbalances, excessive specialization and declining productive capacity. Therefore, the assessment of structural transformations is essential for identifying regional disparities and supporting more effective structural and regional policy decisions. This study investigates structural transformations of regional economies under conditions of instability and proposes a methodological approach to assessing their structural balance. The research framework combines sectoral, labor, investment and technological, entrepreneurial, and adaptive dimensions of regional development. To ensure comparability of heterogeneous indicators, the proposed methodology includes the normalization of stimulants and destimulants followed by the construction of an integrated index of structural balance. The approach also provides for the classification of regions according to the level of structural balance and the dynamics of structural change, making it possible to distinguish different types of regional economic systems and identify their specific structural constraints. The results of the study provide a methodological basis for identifying structural imbalances, comparing regional development patterns and determining the areas requiring differentiated regulatory intervention. It is substantiated that structural reform should not be limited to the redistribution of resources among individual sectors, but should be aimed at diversifying the regional economic base, stimulating investment and innovation activity, supporting technological modernization, strengthening entrepreneurship and improving regional adaptability. The proposed approach can be used to support regional policy formation, monitor structural changes and improve the resilience of regional economies under conditions of instability.