Ю. Коротина Н.

Understanding the processes of decentralization of the economy in the federal state as one of the possible sources of economic development is discussed. This understanding requires the revision of implications that the formation and implementation of a policy of relations between the federal center and the regions entails. The goal of our present research is to develop an approach that will help assess the impact of the nature of relations between the federal center and the regions on economic growth. Theoretical and methodological basis of this study is formed by a set of scientific concepts in the field of economic federalism and spatial analysis. Basing on the index method (by determining the values of decentralization of regional incomes and expenditures) and the implementation of positioning, an assessment was made of the relationship between decentralization and economic growth by such resulting parameter of development of the territory as the “growth rate of the gross regional product” and the parameter characterizing the development of federalism relations in the country as “the level of economic decentralization”. According to the calculations we prove there is a positive effect of decentralization processes on regional economic growth in the analyzed time interval. There is a greater impact on the processes of decentralization of the indicator of income decentralization compared to the decentralization of expenses. The results of our research can be used in the work of federal authorities in the formation of the regional component of federalism policy. It seems the proposed approach can be the basis of research related to the determination of main directions of relations between the regions and municipalities.