=Paper= {{Paper |id=Vol-2649/paper6 |storemode=property |title=Selective Adaptive Model for Forecasting of Regional Development Unevenness Indexes |pdfUrl=https://ceur-ws.org/Vol-2649/paper6.pdf |volume=Vol-2649 |authors=Liubov Chagovets,Natalia Chernova,Tamara Klebanova,Oleksandr Dorokhov,Anastasia Didenko }} ==Selective Adaptive Model for Forecasting of Regional Development Unevenness Indexes== https://ceur-ws.org/Vol-2649/paper6.pdf
58


               Selective Adaptive Model for Forecasting
             of Regional Development Unevenness Indexes

           Liubov Chagovets1[0000-0003-4064-9712], Natalia Chernova2[0000-0002-0073-8457],
          Tamara Klebanova3[0000-0002-0284-9839], Oleksandr Dorokhov4 [0000-0002-0737-8714]
                         and Anastasia Didenko5[0000-0001-9254-0554]
1,2,3,4
      Simon Kuznets Kharkiv University of Economics, 9a Nauki av., Kharkiv, 61144, Ukraine
                    5
                      Intetics Inc., 43a Nauki av., Kharkiv,61072, Ukraine
                              chahovets.liubov@hneu.net
                                 natacherchum@gmail.com
                                       t_kleb@ukr.net
                                aleks.dorokhov@hneu.net
                         didenko.anastasya2013@yandex.ua



           Abstract. The article deals with the issue of unevenness and asymmetry in the
           development of regions. Particular attention has been given to current ap-
           proaches for assessing and forecasting the unevenness level. The paper analyzes
           the possibilities of adaptive smoothing techniques for predicting multidimen-
           sional objects. The advantages and disadvantages of existing methods of predic-
           tive analytics for the study of unevenness and asymmetry are shown. The adap-
           tive selective model for predicting the unevenness indicators of socio-economic
           development of regions was developed based on the methods of multidimen-
           sional objects mathematical modeling. The selective adaptive model is based on
           a combination of the exponential smoothing model and the Holt model. The
           suitability analysis of models for forecasting the values of unevenness level of
           socio-economic development of regions was conducted. The forecast of indica-
           tors was calculated using the combined method of adaptive smoothing based on
           the selective model for groups of regions with high and low socio-economic
           development. The forecasts were obtained for the following indicators: number
           of marriages, average wage, number of households with children, number of pa-
           tients with active tuberculosis, number of detected crimes, water pollution level,
           retail turnover, number of mobile subscribers, import of services. Due to the
           developed selective model, the quality of the forecast was significantly in-
           creased. The obtained models make it possible to improve the quality of deci-
           sion-making on managing regional socio-economic development.

           Keywords: Region, System, Unevenness, Socio-Economic Development, Indi-
           cator, Model, Estimation, Adaptive Forecasting, Management.




Copyright © 2020 for this paper by its authors. Use permitted under Creative
Commons License Attribution 4.0 International (CC BY 4.0).
                                                                                       59


1      Introduction

   In today's world, there are a large number of uncertainty factors that have a signifi-
cant impact on the development of regions, regional formations and countries. They
are fluctuations in the process of economic development and affect the main areas of
balanced development. It is the deep socio-economic disparity between the regions
that is closely linked to the heterogeneity and imbalance of the economic space of the
country. Therefore, retrospective and prospective detailed analysis of the heterogenei-
ty indicators of the regional economy development is relevant. The decision-making
process in managing the economic development of regions under conditions of in-
complete information should take into account the factors of unevenness and asym-
metry of territorial development.
   Comprehensive mathematical modeling of the uneven socio-economic develop-
ment of the region is of scientific and practical interest and is of particular importance
for the regional policy development.
   This makes it possible to ensure a balanced development of the economy of the re-
gion and the country as a whole. This is confirmed by the fact that in the practice of
regional management due to the great diversity of subjects, complexity and multifac-
eted tasks, there are significant differences regarding the unified and generally recog-
nized methodology for assessing the unevenness level of socio-economic develop-
ment of regions. All of the above made the topic of this study relevant.


2      Literature Review

The process of improving theoretical and methodological developments on the prob-
lem of estimating and forecasting the unevenness level of socio-economic develop-
ment of regions is currently underway in Ukraine. The conducted analysis of modern
scientific literature [1 – 4, 6, 7, 9 – 21, 23 – 25, 27, 28, 30, 32 – 47, 49 – 53] has
shown that the topic of socio-economic uneven development of regional systems is
one of the most discussed in the world.
   Many scientists, economists and sociologists talk about the asymmetry of regional
development [14, 17, 34, 37, 38, ], the growth of uneven development of territories [2,
9, 11, 19, 51], divergence [6, 22, 25], differentiation [7, 53, 15] and imbalance [4, 13,
24, 46]. in the development of countries and regions. It should be noted that each of
these concepts is substantially related to the differences that characterize the uneven
socio-economic development. It should also be noted that some scientists distinguish
separate phases of non-uniformity - differentiation, asymmetry, polarization. As noted
in [34], the influence of some objective factors causes the inequality, then the combi-
nation of factors increases and the links between them and socio-economic processes
are complicated. This leads to an increase in differences, further exacerbating differ-
ences, reflecting a degree of division of the territory.
   The emphasis in modern research has shifted towards studying the structural char-
acteristics of the economic space [15], the features of the uneven development of
territories of different hierarchical levels [1], as the increasing unevenness begins to
60

create threats to sustainable progressive development. In the paper, we will use the
definition given in [34], that the uneven socio-economic development is understood
as a type of regional development, in which there is an increase in differences be-
tween regions in terms of accumulated economic potential, the degree of population
well-being, as well as other characteristics of economic and the social sphere of the
regions.
   In addition to differences in approaches to identifying regional disparities, there are
also differing views on assessing and forecasting both unevenness indicators and as-
sessing the level and status of regional development disparities. Practical interest in
issues related to the development of methods of diagnosis and assessment of irregu-
larities is growing. The analysis of the peculiarities of methodological approaches
makes it possible to conclude that in most methods the assessment is carried out on
the integral index of socio-economic development indicators. This makes it possible
to make an assessment in dynamics, which allows for comparative analysis at differ-
ent time intervals. But along with these benefits, there are a number of disadvantages:

      lack of a unified system of indicators for assessing uneven regional develop-
       ment of the country; taking into account a large number of indicators, on the
       one hand, significantly improves the quality of the information model, but on
       the other hand, leads to information overload of decision-making processes and
       complicates the interpretation of the results.
      systems of indicators that form an integral level of development are not always
       comparable due to the inclusion of indicators specific to a particular region.
       The formed system should provide the ability to conduct a comparative (back-
       ground) analysis of the socio-economic development of regions over time.
      the models do not take into account the possibility of adapting model parame-
       ters in accordance with a change in the direction of economic development

   Thus, the theoretical foundations of developing models for balanced socio-
economic development of the regions are fully reflected in scientific papers. Howev-
er, a number of issues related to modeling the socio-economic development of regions
in the context of a cyclical crisis, assessing the heterogeneity of the economic space,
identifying factors-sources of development asymmetry, were not found most fully in
modern researches.


3       Problem Formulation, Methods

The purpose of the study is to develop an adaptive selective model for predicting
indicators of uneven socio-economic development of regions based on methods of
predictive analytics and multidimensional objects modeling.
   To achieve the purpose, the following tasks should be conducted:

      form a basic set of models included in the adaptive selective model;
      estimate the parameters and quality of models;
                                                                                     61

    conduct a comparative analysis of the results obtained for each base model in-
     dividually and the selective model as a whole;
    get a forecast of the regional development unevenness Indexes according to the
     resulting model.

   Forecasting the state of the regions is an important component of its assessment,
which will allow to assess later the unevenness level and the directions of strategic
planning. To develop a model basis for predicting the uneven socio-economic devel-
opment of regions, the results of the study [8], were used, which suggested a concep-
tual basis for assessing and analyzing the unevenness of regional development. Ac-
cording to the complex, a system of information representative indicators of uneven
socio-economic development was proposed. The grouping of regions by the level of
socio-economic development made it possible to assess the homogeneity and sustain-
ability of the groups obtained, determine the place of each region in the initial set,
identify structural deformations within the groups. Based on the study, two groups of
regions were identified and a model for recognizing the state of uneven socio-
economic development was constructed. As a result of the analysis of the indicators
average values, regions with a high and low level of socio-economic development
were identified. The conceptual basis allowed to form an information base for the
development of a selective adaptive model for predicting the level of unevenness and
individual structural components of the unevenness indicator.
   The dynamic nature of the development of financial and economic processes often
outweighs the property of inertia, so adaptive methods that take into account infor-
mation heterogeneity of data are more effective. Adaptive forecasting methods aim at
constructing models that can independently adjust parameters and take into account
the informational value of different members of the time series and give fairly accu-
rate estimates of future members of the series. And if these methods are used simulta-
neously, i.e. in combination or selectively, the quality of short-term time series fore-
casting can be improved significantly.
   Let’s analyze the peculiarities of short-term adaptive forecasting methods [5, 22,
26, 29, 31]. Exponential smoothing is most commonly used to smooth time series and
obtain short-term forecasts when series’ length is rather short.
The essence of the method of exponential observation is that in the procedure of
searching for the smoothed level only values of the previous levels of a series taken
with a certain weight are used, and the weight of the observation decreases with the
distance from the time for which the smoothed value of the row level is determined.
Consider a time series of observations                . The formula for calculating the
exponential mean is:
                            (      )       (                       )                 (1)

where   – smoothing parameter.

   The value of ,         ̅̅̅̅̅, calculated for the moment t, can be considered as the
prediction of the value of the level at the time       :             , where         –
predictive value of the level. The forecast for the      level is the exponential mean
62

    , calculated at time         . Then the prediction error at time   will be equal to the
formulas:
                                           ̂               ,                            (2)

   The forecast made using the exponential mean at time is equal to the forecast
made at time         plus some correction that depends on the forecast error for time .
This is called the exponential mean adaptation. In essence, there is no adaptation,
since all the corrections are made with a constant coefficient [5, 23, 28]. And since
the actual value of       , is unknown, and hence the error      , then we have to re-
place       with the mathematical expectation          which is zero for any t.
   The following problems arise when using the exponential smoothing method:
1. parameter choice. If it is necessary to increase the contribution of the previous
   value, is chosen close to 1; if the aim is to eliminate the influence of the individ-
   ual previous values of the time series, then the sufficiently small values of parame-
   ter are used;
2. select the initial value of . It is usually taken to be equal to the first value of the
   time series, or the arithmetic mean of several initial levels of the series.3) Expo-
   nential averages are particularly poor when the series has a downward or upward
   trend. In these cases, the forecasts become either too high or too low. The larger
   width of the confidence interval indicates the poor adequacy of the forecast model.
   All forecasts for moments greater than             , will be constant and equal to
    ̃           . This fact is a major drawback of the exponential mean as a predictive
   tool.
3. The disadvantage of the exponential mean model is the delay (shift) effect. A de-
   crease in the smoothing parameter leads to shift increase and vice versa. If the time
   series increases, then the shift is positive, that is, the forecasts will be below the
   true values, and if the time series decreases, the shift is negative, that is, the fore-
   casts will be higher than the true values.

   The development of adaptive smoothing models are models that combine the ele-
ments of exponential smoothing and allow the effects of linear trends to be distin-
guished. One such model is the Holt model. Holt was the first to use two smoothing
parameters to construct forecasts using a linear model:

                                 ̂             ( )+ ( )                                 (3)

where ( ) – parameter that characterizes the change in the average process level;
   ( )– parameter that determines the variability (increment) of the process per unit
time.
   When you receive more data, formulas to improve forecasts will be as follows
[22].

                ( )=         (         )       (   )   (       ) (      )               (4)

where             – first smoothing parameter.
                                                                                      63

   In general, estimating a prediction error when using a Holt model is a very time-
consuming task. The coefficient ( ) is defined as the exponential mean for the in-
crements of the parameter ( ):

                 ( )        (   ( )–    ( – ))        ( –   ) ( – ),                 (5)

                     – second smoothing parameter.
   As noted in [31], the lack of classical models can be eliminated by more flexible
combined forecasting models, which include several simpler adaptive models. There-
fore, it is proposed to use an adaptive selective prediction model to overcome the
shortcomings of the above models. In combined models of selective type, at each
step, automatic selection according to the given criterion of the best model from
among those included in the basic set is organized. Thus, adaptation occurs at two
levels: by structure or type of model and by parameters. In a combined hybrid model,
the forecast is formed as a weighted sum of forecasts obtained by alternative models.
The weights are adaptive.
   The essence of this model is as follows. At each step, several base models define
predictive values that are compared to actual ones. Then the best performing model is
used to find new predictive values. In the next step, the procedure is repeated [31].
Thus, the forecast for τ steps is determined as follows:

                                ̂        ̂ ( ) , τ > 0,                              (6)

where ̂ ( ) – model forecast number at time for steps.
  The model number at time is defined as follows:
                                                      ̃                            (11)7

where – number of base set of models;
 ̃ – exponentially smoothed mean square error of the th model at time :
   The basic set of adaptive selective models is formed automatically. The calcula-
tions of the future values of the series are performed for each of them individually,
but the estimated value obtained by the model that best reflects the real process at a
given time interval is selected as a forecast.
   The best model is selected according to the specified selection criterion. The crite-
rion for the average absolute percentage error for a given prediction period is also
used to select the best model variant.
                                    |   ̂|                      | |
                                ∑                           ∑

   The smaller the value of this indicator, the better the quality of the model being se-
lected, ie the theoretical values are closer to the real values of . The model is con-
sidered to provide a sufficiently high prediction accuracy if the average absolute error
(m.a.p.e.) does not exceed 10%. If (m.a.p.e.) is in the range of 10% to 20%, then one
can speak of a satisfactory forecast accuracy.
64

   Switching to a specific model is carried out when its selection criterion is minimal
compared to the same indicator for the rest of the models in the base set. It should be
noted that the use of an adaptive selective model is effective when the basic models
are significantly different.
   Thus, in the short-term forecasting, the dynamics of the studied indicator at the end
of the observation period is usually more important, rather than the tendency in its
average development, which has developed over the whole retrospective period.


4      Findings

In accordance with the considered concept of the study, models of prediction of input
indicators of unevenness was developed for the following groups of indicators: social,
economic and agricultural potential and security. These groups contain the following
indicators: number of marriages, number of households with children, number of
crimes detected, average monthly wage of workers, incidence of active tuberculosis,
discharge of contaminated return water into surface water bodies, retail turnover,
number of mobile subscribers, import of services, GRP per capita, capital investments
per capita, volume of industrial production per capita, profitability of operating activi-
ties of enterprises, labor productivity in agricultural enterprises [48].
    Consider the forecasting of 14 indexes of regional unevenness development by the
adaptive selective model. The set of indexes was determined from the previously
research: Number of marriages, Average wage, Number of households with children,
Number of patients with active tuberculosis, Number of crimes detected, Water pollu-
tion level, Retail turnover, Mobile subscribers, Import of services [8]. Let’s consider
the forecasting of variables on the example of the average wage coefficient in Ukraine
by region. The training and forecasting set are based on the monthly data of Kharkiv
region for 2016-2017, since the considered annual data for 2010-2017 are very vola-
tile, so the sample will be 24 periods [48]. In this case, a short-term forecast of the
dynamics of the average wage in the Kharkiv region for the 1 period forward – 1
month is constructed. The coefficient values are predicted using a selective adaptive
model, which is based on a combination of the exponential smoothing model and the
Holt model. Both models are used in short-term time series forecasting. Consider the
dynamics of average wages in the Kharkiv region in dynamics (Fig. 1).


          8000
          6000
          4000
          2000
             0
                 0           5          10      t    15          20           25

                 Fig. 1. Dynamics of the average wage in the Kharkiv region
                                                                                        65

   The time series will be divided into two parts. For the first part, which is a sample
of 14 values, we construct exponential smoothing model and the Holt model. Then we
make forecasts for each model for one step ahead. Further, in order to estimate the
forecasts obtained, we compare them with the actual value on the observation, using
the average absolute percentage error as the measure of the forecast quality. Finally,
we will summarize all the results obtained in a single table. According to the results
of the forecast for the one step forward (15 period), we will select the most adequate
model. It will be the basis for building an adaptive selective model for the last 10
periods. As a result, the forecast for the25-th period will be obtained.
   First step. Construction of an exponential smoothing model. We carry out expo-
nential smoothing at a = 0.9. As the initial value of the exponential mean, we take the
arithmetic mean of the levels of the series, which equals 4621.6 UAH in a sample of
14 values. The obtained model of exponential smoothing with a forecast of 1 step
forward is presented in Fig. 2.

  6000


  5000


  4000


  3000
                                               Y Y- фактичні    значення
                                                    – actual values
  2000
                                               Експоненційне   згладжування
                                                exponential smoothing
  1000


      0
          0                       5                      10                        15

              Fig. 2. Actual and calculated values (exponential smoothing model)

   According to the results we can see that the forecast value for the 15th period
equals 5481.7 UAH, that is, the model predicts a decrease in wages. Also, on this
chart, you can see the disadvantage of exponential smoothing - the shift effect pres-
ence. In shift cases, the forecasts become either too high or too low, as shown in the
graph.
   The second step. The Holt model was built for a1 = 0.9 and a2 = 0.7. The initial
values of the Holt model indices are the linear trend OLS estimates. The results of the
model with the forecast for 1 period are presented in Fig. 3.
66


     6000

     5000

     4000

     3000
                             Y - фактичні
                                 Y – actualзначення
                                            values
     2000
                             Модель
                                HoltХольта
                                    model
     1000

        0
            0      2          4         6         8       10        12       14       16

                       Fig. 3. Actual and calculated values (Holt model)

The quality of this forecast will be determined in the next stage of the work. In this
case, when comparing the obtained calculations with the actual values, we see that the
Holt model also has a delay effect. However, unlike the exponential smoothing mod-
el, the result on the graph is better. Let's check this assumption in the next step.
    The third step. The criterion for the mean absolute percentage error (M.A.P.E.) is
used to select the best model variant. The smaller the value of this indicator, the better
the quality of the model, because the theoretical values of Yi are closer to the real
values. The model is considered to provide a fairly high prediction accuracy if
M.A.P.E. does not exceed 10 %. If M.A.P.E. is in the range of 10 % to 20 %, then we
can speak about the satisfactory accuracy of the forecast. Comparative analysis of the
calculated models has the following results (Fig. 4).

         Exponential smoothing
         M.A.P.E. = 0,053908             5,39 %          Excellent forecast quality

         Holt model
         M.A.P.E. = 0,046854             4,69 %          Excellent forecast quality
                        Fig. 4. M.A.P.E. value for forecasting models

M.A.P.E. for the exponential smoothing model at a = 0.9 is 5.39 %, for the Holt mod-
el at a1 = 0.9 and a2 = 0.7 equals 4.69 %. Thus, we see that both models can be ac-
cepted for prediction, but Holt's model provides higher accuracy of prediction.
   Let's start with building an adaptive selective model. The essence of such an adap-
tive selective composition of models is as follows. At each step, several base models
are used to determine the predicted values, then the obtained values should be com-
pared with the actual ones. The model that showed better results is used to find new
predictive values. In the next step, the procedure is repeated.
   In the previous stage, a forecast of a step forward, that is, for the 15th period, was
calculated using exponential smoothing and Holt models. Let’s compare the results
                                                                                            67

with the actual value, calculate M.A.P.E. and determine which model will be included
in the selective model forecast at this stage. In the first stage, we obtain the results
shown on Fig. 5.

    Time                                                     Forecast
                      Actual value
    period                                   Exponential smoothing             Holt model
                                                   5481,47                      5637,04
      15                 5893                                M.A.P.E.
                                                   6,983%                       4,343%
                 Fig. 5. Actual values and predictive values for 15th period

Thus, in the 15th period, the best result was shown by the Holt model, this result will
be used for the selective model. From the same algorithm, we build a step-by-step
adaptive model of the average wage in the Kharkiv region. The results are presented
in Table.1.

                  Table 1. Step by step calculation and best model choice

     Time                        Exponential smoothing         Holt model
              Actual value
     period                      Forecast         M.A.P.E.     Forecast         M.A.P.E.
     15       5893               5481,47          6,98%        5637,04          4,34%
     16       5848               5851,85          0,07%        6170,42          5,51%
     17       5945               5848,38          1,63%        5980,13          0,59%
     18       6468               5935,34          8,24%        6026,27          6,83%
     19       6449               6414,73          0,53%        6779,87          5,13%
     20       6224               6445,57          3,56%        6629,68          6,52%
     21       6660               6246,16          6,21%        6156,58          7,56%
     22       6593               6618,62          0,39%        6818,83          3,43%
     23       6634               6595,56          0,58%        6682,48          0,73%
     24        7447              6630,16          10,97%       6675,20          10,36%
     Forecast
     25 period                   7365,3156                     7892,407

We see that the chosen combined method of model construction justifies its im-
portance, because at certain stages of model development, the quality of the forecast
changes significantly and the models are interchangeable, thereby covering the under-
medication at each stage and improving the quality of the forecast. Thus, the selective
adaptive model has the following data, which is given in Table 2.
68

                    Table 2. Selective adaptive forecasting model results

     Time period   Actual value           Selective adaptive model Final model choice
     15            5893                   5637,04                  Holt
     16            5848                   5851,85                     ES
     17            5945                   5980,13                     Holt
     18            6468                   6026,27                     Holt
     19            6449                   6414,73                     ES
     20            6224                   6445,57                     ES
     21            6660                   6246,16                     ES
     22            6593                   6618,62                     ES
     23            6634                   6595,56                     ES
     24            7447                   6675,20                     Holt
     M.A.P.E.      4,569%
     According to UkrStat                 Forecast
     25*           7789                   7892,40                     Holt
     (June 2018)
     M.A.P.E.      2,65%

   We see that the forecast value, which compares with the known actual value of the
average wage for the first month of 2017, has a small margin of error and excellent
forecast quality. A graphical comparison of the actual values with the calculated val-
ues is presented in Fig. 6.

 6000

 5000

 4000

 3000
                                                         У Yфактичний    (грн)
                                                             – actual values
 2000

 1000                                                    Адаптивна селективна
                                                          adaptive selective model
                                                         модель
      0
          0            5                10              15                20         25
                          Fig. 6. Actual and calculated values of Index

   The developed adaptive selective model made it possible to build a better model
than the models provided separately. So, the shortcomings of one model can be
blocked by another, thereby increasing the result.
   Comparison of the forecast quality of the developed models is presented in Fig. 7.
                                                                                     69


      7%
                                       6,036%
      6%                  5,691%
                                                           Адаптивна   селективна
                                                            Adaptive selective
      5%                                                   модель
                                                            model
              4,569%

      4%
                                                           Експоненційне
                                                             Exponential smoothing
                                                           згладжування
      3%

      2%                                                   Медель  Хольта
                                                            Holt model


      1%

      0%

                           Fig. 7. Forecast quality comparison

   We see that due to the developed selective model we managed to increase the effi-
ciency and quality of the forecast by 1.52 times. In this case, this is a great result,
since a change of 1% means a big change in the original data. With the help of an
adaptive selective model, a 2-step forecast has been constructed. According to the
same methodology, all other regions are forecasted for the other 14 indexes, which
was determined from the previously constructed study models [8]. The set of regional
socio-economic unevenness indexes is formed according to the following factorial
groups of indicators: social and demography, foreign economic activity (x4 – Number
of marriages, x14 – Average monthly nominal wages of full-time employees, x18 –
Number of households with children, x26 – Incidence of active tuberculosis, x29 –
Number of detected crimes, x40 – Reset contaminated return water in surface water
objects, x46 – Retail turnover, x55 – Mobile subscribers, x60 – Total imports of ser-
vices), economic resulting and financial potential (x43 – Gross regional product per
capita, x44 – Cost-effectiveness of operating activities of enterprises, x47 – Capital
investment per capita, x51 – Volume of sold industrial products (goods, services) per
person), agricultural potential (x50 – Labor productivity in agricultural enterprises).
   The forecast will provide an opportunity to predict the state of socio-economic de-
velopment of the region, as well as to estimate the overall level of unevenness. Fore-
casted value of indicators of social and economic development of regions for 2018
and 2019 are shown at the table. 3, 4.
70

                    Table 3. Estimated values for the social potential group

                                                                     Indexes
№    Region
                      x4              x14              x18            x26            x29         x40          x46

1    Vinnitska        11105.7         8247.5           218.7          498.3          13304.1     1            49780.6
2    Volinska         6963.7          7861             159.6          521.1          12396.8     1            30448.9
3    Dniprope-
     trovska          24112.8         9290.2           456.7          1737.8         44563.2     235          133948.2
4    Donetska         5101.4          10813.2          237.3          952.5          28876.2     143.6        39845.5
5    Gitomirska       8721.1          7806.4           180.7          612.4          15812.9     3            38726.1
6    Zakarpatska      8281.4          8883             192.1          667.9          9628.1      3.9          37847.2
7    Zaporigska       12114.1         8904             246.5          822.7          49901.9     61.9         67143.2
8    Ivano-Fran-
     kivska           8744.7          7716.9           213.7          664.7          10722.2     1            47521
9    Kyivska          15634.9         9393.9           244.1          1059.7         37277.6     5.1          82948.5
10   Kiro-
     vogradska        6411.7          7622.9           136.6          658.2          18333.3     1.7          31278.6
11   Luganska         1183            8209             96.5           314.8          12654.7     19           6543.3
12   Lvivska
                      17451.6         8524.1           375.7          1032.9         40890.8     46.3         93593.4
13   Mykolaivska
                      8081.8          8964.7           172.6          557.8          15987.8     21.2         40978.5
14   Odeska           20392.9         9135.6           340.5          2529           36504       28.7         116794
15   Poltavska        10335.8         9027.6           185.9          682.2          23964.2     3.7          46027.7
16   Rivnenska        7323.6          8195.4           177.4          360.2          11975.4     6            30138.4
17   Sumska           6761.9          7981             150.4          561            15301.3     24           33314.2
18   Ternopilska      6146.3          7354.3           163.2          280            7041.7      2            25298.4
19   Kharkivska       20830.2         8415             371.7          975.9          63900.1     11           118224.2
20   Khersonska       7709            7814.4           142.4          721.8          17076       1            38633.2
21   Khmelnitska      8597.6          8277.6           185.2          497.7          13108.7     1            36235.4
22   Cherkaska        7930.3          7913.2           173.4          552.3          22040.8     7.2          39931.9
23   Chernivetska     6046.7          7861.7           154.8          264.3          10430.9     2            22661.2
24   Chernigivska     6451            7948.2           142.5          534.3          15668.8     6.1          29611.1

        Table 4. Estimated values for the economic and agricultural potential groups

                                                                Indexes
№    Region
                    x55         x60          x43              x44           x47            x51          x50
1    Vinnitska      1225.9      12.7         66259.4          13.7          9072.3         53826.8      374167.5
2    Volinska       1150        18.7         45347.1          4.3           8267.9         32279.1      392304.2
                                                                                                                 71

3         Dniprope-
          trovska         4033.1        181       96464.1    5.5           16114     153478       307816
4         Donetska        5868.4        198.2     34582.1    -2.4          3228.7    61535        293479.1
5         Gitomirska      908.2         12.3      52649      9.2           8056.4    37087.4      328044.4
6         Zakarpatska     1157.3        13.6      32073.3    7.8           5372.6    20134.2      157698.8
7         Zaporigska      2104.3        54.7      81324.5    12.8          11341.1   101827       230907
8         Ivano-
          Frankivska      1265.6        16        47718.7    5.6           8010.6    41141.2      283321.3
9         Kyivska         1248.3        115.1     100817     4.3           23290.3   78337.8      258188.4
10        Kiro-
          vogradska       1057.2        6.7       65861.8    7.3           9395.1    29906.6      220972.2
11        Luganska        2548.1        23.3      11231.3    -9.1          1799.7    7543.45      245346.4
12        Lvivska
                          2197.1        48.2      61430.9    6.3           11786.3   40027.6      489314.8
13        Mykolaivska
                          1343.3        53        68045.4    6.3           12374.7   54705.8      233176.7
14        Odeska          3078.9        197.2     66369.4    3             11358.9   32875.3      244867.3
15        Poltavska       1653.9        121.1     105284     8.5           13413.9   161166       229374.4
16        Rivnenska       1026.8        19.5      44702.5    2.1           6430.9    35922.8      367367.4
17        Sumska          1310.6        42.3      56250.3    16.3          8045.2    40842.4      341233.9
18        Ternopilska     604.6         9.2       38455      6.8           8374.6    18629.1      469373.8
19        Kharkivska      3989          36.3      76867.6    5.2           8470.3    76243.9      296067.2
20        Khersonska      1307.1        10.7      50067      9             8606      35424.2      282400.4
21        Khmelnitska     769           13.9      51433.6    14            10557.2   36291.4      400251.4
22        Cherkaska    1091.5           10.8      65479.9    11            8374.3    55330.3      288584.1
23        Chernivetska 956.5            1.4       29559.9    3.4           3569.8    159937.3     247513
24        Chernigivska 1098.9           20.3      56532.8    8.2           8988.1    61322.8      324271.9


   Let's look at the dynamics of the predicted values of social potential indicators for
regions from the group with high potential of development (see Table 5)

    Table 5. Predicted values increments of social potential indicators for regions from the group
                                 with high potential of development

                                                                            Region
                                Peri-    Dne-                    Za-
    №      Indicator                                 Do-                                                 Khar-
                                od       prope-                  porizhz     Kyiv    Lviv       Odessa
                                                     netsk                                               kiv
                                         trovsk                  hya
           Number               25       1,120       0,780       1,097       1,119   1,059      1,099    1,081
    x4
           of marriages         26       1,022       0,578       1,024       1,110   1,028      1,084    1,079
    x14    Average wage         25       1,259       1,252       1,196       1,197   1,214      1,246    1,264
72


                       26    1,064    1,113    1,085    1,092    1,099   1,121   1,066
       Number          25    0,990    0,882    0,990    0,997    0,995   0,996   0,994
 x18   of households
                       26    0,990    0,901    0,988    0,994    0,998   0,998   0,995
       with children
       Number
       of patients     25    0,965    0,947    0,924    0,960    0,881   0,993   0,883
 x26
       with active
       tuberculosis    26    0,865    0,872    0,872    0,952    0,864   0,994   0,969

       Number
                       25    0,997    1,005    1,034    1,082    1,029   1,021   1,069
 x29   of crimes
       detected        26    0,986    0,991    1,025    1,078    1,049   1,021   1,070

       Water pollu-    25    0,999    0,935    0,985    1,040    0,970   0,942   0,909
 x40
       tion level      26    0,984    0,919    0,998    0,975    1,015   0,983   1,100

       Retail          25    1,081    1,018    1,072    1,098    1,102   1,092   1,078
 x46
       turnover
                       26    1,075    1,036    1,066    1,090    1,095   1,089   1,071

       Mobile          25    0,986    0,966    0,972    0,856    0,909   0,978   0,965
 x55
       subscribers     26    0,980    0,966    0,969    0,841    0,903   0,971   0,969

       Import          25    0,924    0,887    1,009    1,014    1,135   0,972   0,905
 x60
       of services     26    0,766    1,119    1,048    0,741    0,729   1,107   0,903


   Thus, Kyiv region is the most important, which is the leader in this classification of
regions. The Dnipropetrovsk region should be mentioned next. Donetsk region has the
lowest values in 2018-2019 (25 – 26 period). Since this region is not economically
stable, it is likely that it will move to the second class - with low level of socio-
economic development.


5      Discussion and Conclusion

According to the research results it was proved that the current stage of development
of the Ukrainian economy is characterized by structural imbalances of regional devel-
opment, manifested in the unbalanced growth rates of groups of donor and recipient
regions, unbalanced growth rates of economic and social spheres of different regions.
Significant regional disparities are a deterrent to ensuring high rates of economic
growth throughout the country. Thus, the analysis of the uneven socio-economic de-
velopment of the regions of Ukraine made it possible to conclude that the problem is
highly relevant.
   The possibilities of adaptive smoothing techniques for the prediction of multidi-
mensional objects have been analyzed in the paper. Advantages and disadvantages of
existing methods of predictive analytics were shown. An attempt is made to build
selective models, the composition (basic set) of which includes several simpler adap-
tive models. The selective adaptive model is based on a combination of the exponen-
                                                                                          73

tial smoothing model and the Holt model. In combined models of the selective type,
at each step, automatic selection by the given criterion of the best model is organized.
Thus, adaptation takes place at two levels: level 1 (according to the structure of the
model or type of model) and level 2 (according to the parameters of the model). In the
combined hybrid model, the forecast is formed as a weighted sum of forecasts ob-
tained by alternative models. The weighting coefficients of smoothing are adaptive in
this case. An adaptive selective model for predicting indicators of uneven socio-
economic development of regions was developed based on Data Science methods.
The suitability analysis of models for forecasting the values of unevenness level of
socio-economic development of regions was conducted. Prospects for further research
include the possibility of identification of the most significant strategic levers of bal-
ancing regional development disproportions This provides the basis for identifying
priority vectors for crisis management in the region, achieving a proper economic
status, further sustainable development of both individual regions and the country as a
whole.


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