Subject. The impact of the competitiveness of regional economic sectors on the integral indicator of the sustainable development of the region in the context of economic modernization. Objectives. To establish and quantify the relationship between the competitiveness of the region's industries and the sustainability of its socioeconomic development, substantiate the priorities of economic diversification aimed at improving financial stability and the quality of economic growth. Methods. The methodological basis of the research is based on a comprehensive statistical and econometric approach, including analysis, synthesis, induction and deduction, a comparative analysis of scientific concepts of sustainable development, competitiveness and entrepreneurship. Results. It has been established that there is a statistically significant relationship between the indicators of competitiveness of the region's industries and the integral indicator of sustainable development. The basic industries (mining and metallurgy) are characterized by a weak or negative relationship with the sustainability indicator, which indicates the limitations of an extensive growth model. A high positive relationship between the STR effect and sustainable development has been identified for the chemical industry and the IT services sector, confirming the role of structural diversification and knowledge-intensive sectors. Conclusions. The sustainable development of the region in the context of economic modernization is determined not so much by the scale of growth of individual industries as by the quality and structural balance of the sectoral system. The formation of an innovative environment, the development of knowledge-intensive and service sectors, as well as increasing the structural stability of industries are key factors in strengthening the financial stability of the region.
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