The main goal of the study was to investigate attractiveness of cities with population over 100,000 (44 Ukrainian cities) for carrying on business and to estimate development potential for each city.

Research objectives

The objective of the research was to estimate/analyze:

well-being level of the population in each city; total income of the city population; equality of the city population by income
status of economy of each city; development prospects of each city
demographic situation in cities

The study allows:

comparing company’s perfomance in different cities/regions of Ukraine considering their economy and development potential
analyzing reasons of inefficiency/ poor efficiency in business in different cities/regions of Ukraine
estimating regional markets’ potential
evaluating each city’s potential concerning establishing/developing business there

Research approach

To conduct this study, the data were obtained from the following main sources:

Household surveys, performed by GfK Ukraine during 2002-2006 (this source provided data on well-being, some of the demographic indicators, employment and labor force indicators). This indicators were compared in two periods — Period 1 (average values for 2002–first quarter 2005) and Period 2 (average values for 2004-2006)
State Statistic Committee of Ukraine (this source provided data about urban economy for 2003-2005)
All Ukrainian census ‘2001 (data on some of demographic indicators)

The study covers cities with population over 100,000 (except for Yevpatoria and Kam’yanets-Podilsky, where the sample size was not sufficient for the analysis). To estimate the well-being of households, we used the special method for processing the data of household surveys. In our opinion, this method allows to correct for (a) the tendency of respondents to understate declared incomes during the interview, and (b) the sample decrease/distortion, resulting from interviewees’ refusal to declare their income.

Outputs

Analytical report and database of indicators for each city

All research outputs are delivered in electronic format in English and/or Ukrainian.

Research report outline

Well-being of the city population
- Estimated average income per capita
- Estimated total annual income of the city population
- City ranking by the average income per capita versus the total income of the population (mapping of the average income per capita in the city across the total annual income allows to conclude on products and services for which consumer segments should be promoted in which cities)
- Estimated average expenditures on food per capita
- City ranking by the average income and expenditures on food per capita
- Estimated total annual expenditures on food in the city
- Estimated monthly average money left after expenditures on food per capita (this gives an opportunity to evaluate attractiveness of the city to promote non-food products and services for different consumer segments; in addition, it provides an alternative estimate of the well-being in the city)
- Income inequality in the city measured by the GINI coefficient. GINI coefficient varies within the theoretical range from 0% to 100%. The coefficient that is equal to 0% means that all the people in the city have equal income per capita (complete equality); if the coefficient is 100%, then the total city income is in the possession of the richest group of population only
- Mapping of the city ranking by average income per capita versus income inequality provides understanding how attractive different cities are for promoting products and services of different price segments
Overview of the city economy
- Development of the services sector and manufacturing is the measure of the sustainability of the local economies
- Shares of companies of different size in the total revenues of companies in the city is the measure for the vulnerability of the urban economy
- Labor force participation rate shows availability of labor resources in the urban economy
- Distribution of population by employment status
- Estimate of the unemployment rate reveals both the current condition of the city economy and the demand for labor
- Number of unemployed and those out of labor force per one employed affects the household incomes in the city
- Segmentation of cities by main economic indicators. Cities were segmented by a set of economic indicators to evaluate the development of the city economy and to summarize information about cities
Demographic characteristics across cities
- Population currently residing in the city
- Population growth both natural and due to migration
- Average age of population
- Distribution of population by age
- The share of population with higher education and average duration of education of city residents measure the qualification level of the labor force available in the city economy. As a rule, these measures are correlated with the level of income in the city

Costs

For companies that are residents of Ukraine, the full price of the research outputs amounts to UAH 6,420 (VAT included)
For companies that are non-residents of Ukraine, the research outputs cost EUR 1,200 (VAT included)
For those who have bought the Study of Ukrainian Cities for the previous year, the research outputs cost UAH 3,000 (VAT included) or EUR 600 (depending on the residence of the company)

CONTACT: Anastasia Budash, Researcher of Services Research Department