The Comparative Analysis of the Territory Financial Potential Assessment Methods

Abstract

The article provides the analysis of scientific works on the issues of the territory financial potential assessment methods. According to this analysis there are several fundamentally different approaches to determining the territory financial potential. It is proved that the financial potential of the region is becoming increasingly important today, because in the near future it will determine the state of the economy of the region, the state, as well as occupy one of the main places among state priorities, will affect the financial regional and state policy. The importance of assessing the territory financial potential is also due to the fact that knowing its real state, it becomes possible to effectively and efficiently use all kinds of resources necessary for the region development. The main methodological approaches of assessing the financial potential of the territory are considered: the statistical approach, the comparative approach, evaluation with the use of macroeconomic indicators, the analysis with the use of special indicators, the regression analysis. The main essence of each approach is revealed. The author concludes that despite their diversity, every approach is characterized by certain shortcomings. The bulk of scientists’ efforts is focused on calculating the so-called used financial potential, that is, the potential that can actually be implemented in the territory in the near future. At the same time, a significant share of financial potential is an unrealized potential, which requires specific and additional methods of evaluation. Another important drawback is that scientists ignore the existence of the shadow sector, which actually distorts the reality. That is, the methodology for assessing the territory financial potential, despite diverse tools, is not perfect today and requires rethinking in order to approach the economic realities and improve the quality of results.