FACTORS OF ECONOMIC DEVELOPMENT: THEORETICAL APPROACHES

Abstract

The article discusses theoretical approaches to the factors of economic development. These approaches include theories that were created as a result of the search for the causes of differentiation in development rates and that recognize that the most important thing for development is the mobilization of the region's internal potentials. The authors analyze four concepts: New Economic Geography, Evolutionary Economics, Sustainable Development, and Intellectual Specialization. The new economic geography considers spatial relations not as one of many, but as the main factor determining socio-economic processes of growth and development. According to the concept, the main role is played by two internal forces that cause the processes of concentration and deconcentration of human/economic activity, and the result of these forces is the formation and development of agglomeration. Evolutionary economics is one of the most modern theories of economic growth and development. This theory describes economic processes by analogy with evolutionary processes in nature. Three features distinguishing it from other theories are indicated: the concept of equilibrium, the dynamics of processes, and the characteristics of business entities. The concept pays special attention to such properties as diversity, complexity, and uncertainty of socio-economic processes, which are necessary conditions for development and for development. Sustainable development is an extension of the neoliberal paradigm. Economic development is still in the forefront here, but social and environmental factors are taken into account to preserve the foundations of life and development for present and future generations. The subject of sustainable development economics is management in the society-economy-environment system. The concept of intellectual specialization is a new approach in the European Union's policy, which has become a key element of its regional policy. The strategy includes three interrelated priorities: smart growth; sustainable development; and inclusive inclusion. The aim of the strategy is to develop an individual approach for each region in all EU countries to overcome the recession and ensure long-term development.