Abstract
The article examines the impact of institutional factors to development of regional economy. Purpose: Identify the role of institutional factors in the development of regional economy. Methodology: We used scientific methods: analysis and synthesis, comparison, generalization, systematic approach. Results: Briefly considered available representatives of institutionalism perspective on the scope of institutions and institutional factors contribution to the economic development of the region. Allocated functions are realized under the influence of institutional factors. The author's approach characteristics contribution of institutional factors in the development of regional economy. Most significant effects of a development of institutional factors in the region for business, households, government bodies and local authorities.
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