Specific Aspects of Functioning and Interaction of Regional Economic Systems

Abstract

The presented study examines the specific aspects and processes of the functioning of regional economies and interregional interaction.Aim. The study aims to analyze the existing mechanisms of the functioning and interaction of regional economic systems.Tasks. The authors present a general scheme for the functioning of a regional economic system; examine the principles of interaction between regional economic systems; determine the specific aspects of inter-sectoral interaction as a form of interregional cooperation.Methods. This study uses general scientific methods, including systems analysis, synthesis, induction and deduction, specification and generalization, and modelling.Results. The authors substantiate a general scheme for the functioning of the regional economic system as an object of management. Its structural elements include the region’s production-economic and socio-economic complexes and the fiscal sphere. It is shown that interregional interaction is now particularly important as it facilitates joint production of goods. Interregional interaction involves the exchange of goods and services, migration processes, and financial exchange. Interregional cooperation should be based on the existing federal and regional strategies. It is established that inter-sectoral interaction and formation of regional sectoral clusters are efficient forms of interregional cooperation.Conclusions. A specific feature of the functioning of regional economies is that it is regulated simultaneously at the macro- and meso-level. Regulation at the meso-level involves the implementation of regional economic development strategies with allowance for the socio-economic features of individual administrative and territorial units. At the macro-level, the regional economy functions within the existing strategy of the federal center and also involves interregional and inter-sectoral interaction.