ANALYSIS OF THE FEATURES OF CRAFT PRODUCTION DEVELOPMENT AND ASSESSMENT OF ITS IMPACT ON THE ECONOMIES OF MOUNTAIN TERRITORIES

Abstract

The development of craft production in mountainous areas is becoming increasingly significant in the context of modern challenges and opportunities for diversifying the economy of these regions. This diversification is interpreted as the development of production capacities for goods based on manual labor, traditional manufacturing methods, and the use of high-quality natural materials. Unique natural resources, cultural traditions, and the characteristics of mountainous areas create favorable conditions for the development of craft businesses, which can become an important factor in socio-economic growth. However, the lack of systematic analysis and assessment of the impact of this type of activity on local economies complicates the development of effective strategies for supporting and advancing craft production. Therefore, the aim of the article is to investigate the features of craft production development in mountainous areas and to determine its impact on the diversification of local economies. The study establishes that, in the development of mountainous areas, the priority should be the advancement of craft production, considering the following characteristics: 1) limited production; 2) a focus on traditional preparation methods, unique crafts, and traditions; 3) a focus on high-quality ingredients; 4) a focus on local ingredients and support for local agriculture. Analysis of the features of craft production development in the mountainous areas of the Zakarpattia region allows for the identification of several key directions that can contribute to the diversification of their economy and the improvement of the local population's quality of life. The development of sectors such as cheese making, dairy products, honey, bread, chocolate, ice cream, cosmetics, jewelry, décor, furniture, clothing, footwear, accessories, and toys has the potential to become a significant factor in the economic growth and cultural revival of the region. It has been demonstrated that each of the mentioned sectors possesses unique opportunities for creating additional jobs, attracting tourists, supporting local traditions, and expanding opportunities for local businesses. In particular, the development of craft production contributes to the monetization of cultural and natural resources, which is a crucial factor in the sustainable development of mountainous areas. According to the study's content, future prospects in this direction involve analyzing potential internal and external markets for craft products, including international markets with a focus on export.