Methodological approaches to the evaluation of a region’s market capacity
Abstract
The paper outlines the nature of the concept “a region’s market capacity” and substantiates its role in the solution of scientific and practical tasks. It characterizes the methodological approaches to evaluation of a set of features of regional goods markets across several evaluation areas, including the market size (capacity and scale); its accessibility and level of goods saturation; level of market competition, stability, and competitiveness; spatial inequality of the distribution of production and consumption capacity. Special attention is paid to the analysis of existing methodologies of local markets’ attractiveness evaluation that are based on the evaluation of the consumer capacity in the context of revealing the internal capacity of a region to meet the effective demand. The fact that it is reasonable to evaluate the level of the market’s openness that characterizes the impact of markets external to the regions in the course of evaluating the region’s market capacity is emphasized. The impact of agglomeration on the selection of the location of production and sales facilities that are the components of the region’s market capacity is substantiated. The main determinants of the choice are defined and characterized. Methodological approaches to evaluation of a territory’s market capacity in intraregional space – local markets – are researched. The approach is proven to be efficient for evaluation of center-periphery relations within regions, i.e. it allows evaluating not only economic links between districts and oblast centers but also detecting the dependence of economic activity in cities and districts of the region on the density of population and density of employed. The paper suggests the methodology of evaluation of a region’s market capacity that includes the stage-by-stage algorithm of analysis of its forming and use features based on evaluation of its parameters across structural and spatial approaches. The fact that the algorithm of evaluation of a region’s market capacity is of complex nature due to accounting the factors of external and internal environments is emphasized.
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