STRATEGIC RESILIENCE AND INDUSTRIAL INVESTMENT: HOUSING NARRATIVES AND THE "INDUSTRIAL FORTRESS"
##plugins.themes.bootstrap3.article.main##
##plugins.themes.bootstrap3.article.sidebar##
Abstract
The ongoing full-scale conflict in Ukraine has created an urgent need to redefine national economic resilience through the lens of psychological drivers and structural adaptation. The present study investigates the manner in which consolidated socio-economic discourses contribute to the maintenance of investor confidence and the continuity of industry in circumstances of extreme geopolitical turbulence. The objective of the present study is to ascertain the causal relationship between the residential housing market and industrial investment, thereby establishing the "Great Reconstruction" narrative as a pivotal economic stabiliser. In order to achieve this objective, the investigation employs Robert Shiller's "Narrative Economics" to track how stories about EU integration and post-war prosperity transform into tangible capital flows. The methodology integrates a comparative historical analysis of Ukraine's transition against the 1991-1995 Croatian model with a quantitative assessment of official economic indicators from 2020 to 2024. Statistical analysis demonstrates that the residential sector functions as a psychological anchor, where a 21.1% growth in housing completions in 2024, totalling 9,759 thousand m2, directly signaled safety to industrial stakeholders. Consequently, the industrial sector demonstrated a remarkable response, with a record 32 new park registrations during the same period. The paper introduces the "Industrial Fortress" concept, which models industrial zones as autonomous units combining physical security, energy independence, and social connectivity. The findings demonstrate that Ukraine's EU candidate status accelerates institutional adaptation significantly faster than historical precedents, establishing the country as a strategic hub for European nearshoring. The practical value of this study lies in its analytical framework, which policymakers can utilise to employ housing trends as leading indicators for industrial planning. Consequently, the research provides a roadmap for securing continuous production and attracting strategic investment by leveraging the synergy between infrastructure stability and narrative-driven expectations.
How to Cite
##plugins.themes.bootstrap3.article.details##
strategic resilience, narrative economics, industrial fortress, EU integration, nearshoring, wartime investment, industrial parks
Andriienko, A. (2025). Eco-industrial parks as a tool for structural transformation of Ukraine's industry in the context of European integration. Market Relations Development in Ukraine, 122(36-43), 9(292). DOI: https://doi.org/10.5281/zenodo.18049565
Andriienko, A. O. (2025). Industrial parks: global experience and Ukrainian practice in the context of green recovery. Business Navigator, 6(83), 528–532. DOI: https://doi.org/10.32782/business-navigator.83-85
Akimova, O. V., & Linnik, D. (2023). Industrial parks as a mechanism for post-conflict recovery of Ukraine. Economic Scope, (185), 21–25. DOI: https://doi.org/10.32782/2224-6282/185-4
Balytska, M. (2025, April 9). A Billion for the Growth of Industrial Parks: Economic Engine or Money Down the Drain? VoxUkraine. Available at: https://voxukraine.org/en/a-billion-for-the-growth-of-industrial-parks-economic-engine-or-money-down-the-drain
Bioko, V., & Bioko, L. (2023). Industrial parks as an efficient mechanism of attracting investments for economic recovery in a post-war period. Economy and Society, (49). DOI: https://doi.org/10.32782/2524-0072/2023-49-23
Bouteska, A., Buchetti, B., Harasheh, M., & Santoni, A. (2025). Investor sentiment and dynamic connectedness in European markets: Insights from the COVID-19 and Russia-Ukraine conflict (Working Paper No. 3050). European Central Bank.
Cabinet of Ministers of Ukraine. (2025, December 29). New industrial parks MISTO DIY and FURSY included in the Register. Available at: https://www.kmu.gov.ua/en/news/novi-industrialni-parky-misto-dii-i-fursy-vkliucheno-do-reiestru
Case, K. E., & Shiller, R. J. (2003). Is there a bubble in the housing market? Brookings Papers on Economic Activity, 2003(2), 299–342.
CMD-Ukraine & Federation of Employers of Ukraine. (2025). Strategic guidelines for deepening trade and economic relations between Ukraine and EU countries. Kyiv.
Hrabynskyi, I., Prykhodko, I., Halanets, V., Prokopyshyn-Rashkevych, L., Adamovsky, A., & Zhygalo, I. (2022). The impact of the Russian-Ukrainian war on the development of the primary residential real estate market in Ukraine: Results of a cluster analysis. Economic Affairs, 67(04s), 837–849. DOI: https://doi.org/10.46852/0424-2513.4s.2022.17
Impakter. (2025). How nearshore software development in Eastern Europe boosts innovation for SMEs. Available at: https://impakter.com/how-nearshore-software-development-in-eastern-europe-boosts-innovation-for-smes/
Ministry of Economy, Environment and Agriculture of Ukraine. (2025). Catalogue of industrial parks of Ukraine. Available at: https://me.gov.ua/News/Detail/7690a7fc-64a2-43b6-9750-1bf2a1f50c6c?lang=uk-UA&title=KatalogIndustrialnikhParkiv
OECD. (2022). Impacts of the Russian invasion of Ukraine on financial market conditions and resilience: Assessment of global financial markets. OECD Publishing. DOI: https://doi.org/10.1787/879c9322-en
Pidgaina, Ye. (2025, February 21). The boom of industrial parks in Ukraine: how much has been invested and why only 37 out of 100 players accept residents. Mind.ua. Available at: https://mind.ua/en/publications/20285423-the-boom-of-industrial-parks-in-ukraine-how-much-has-been-invested-and-why-only-37-out-of-100-playe
Schönfelder, B. (2005). The impact of the war 1991–1995 on the Croatian economy: A contribution to the analysis of war economies (Freiberg Working Papers No. 14). Technical University Bergakademie Freiberg.
Shiller, R. J. (2017). Narrative economics. American Economic Review, 107(4), 967–1004. DOI: https://doi.org/10.1257/aer.107.4.967
Shiller, R. J. (2019). Narrative economics: How stories go viral & drive major economic events. Princeton University Press.
State Statistics Service of Ukraine. (2020–2024). Commissioning of residential buildings by regions of Ukraine. Official statistical data. Available at: https://ukrstat.gov.ua
UNIDO & Ministry of Economy of Ukraine. (2024). National guiding framework of standards and technical regulations for the green reconstruction of Ukraine. UNIDO Publications.
Unified State Open Data Portal. (2025). Register of Industrial (Industrial) Parks (Dataset). Ministry of Digital Transformation of Ukraine. Available at: https://data.gov.ua/dataset/8206ed0c-5911-4b88-9c7f-56c6fcd08660
Uygur, M. R., & Peyravi, B. (2025). Business resilience and strategic responses in Ukraine and Lithuania during the Russia-Ukraine conflict: Insights from the energy, agriculture, and manufacturing sectors. Business: Theory and Practice, 26(1), 62–77. DOI: https://doi.org/10.3846/btp.2025.22164
This work is licensed under a Creative Commons Attribution 4.0 International License.