THE ESSENCE OF ECONOMIC MECHANISM FOR THE DEVELOPMENT OF RURAL TERRITORIAL COMMUNITIES

Abstract

Purpose. The aim of the article is the determination and substantiation of the essence of the economic mechanism for the development of territorial communities and attracting additional financing. Methodology of research. The research is based on the scientific works of domestic scientists on the development of territorial communities, the identification of its elements, and the formation of measures for attracting funding. General scientific and specific methods such as dialectical method of scientific cognition, analysis and synthesis, graphical method, abstract and logical methods were used to achieve the set goal. The dialectical method of scientific knowledge was used to consider the essence of the economic mechanism of the development of territorial communities; analysis and synthesis – to clarify the relationships between the elements of the mechanism; graphic – for a visual representation of the proposed measures; abstract and logical – for forming research conclusions and proposals. Findings. The economic measures for attracting financing to the development of territorial communities were analysed. It was established that the development of local economy and attracting additional financing is the key subject of study. The key elements of an effective economic mechanism for rural development were highlighted. Originality. A comprehensive understanding of the key elements of an effective economic mechanism was proposed. It provides an understanding of the interaction of these elements and their joint impact on promoting sustainable growth, investment attractiveness, improvement of living conditions, and creating a favourable economic environment. The scientific novelty of the research lies in its integrated approach to studying economic mechanisms necessary for the development of territorial communities. Practical value. The conclusions of the research have practical significance for local authorities and stakeholders involved in rural development of territorial communities. The identified elements of the economic mechanism provide a general plan for policy development and implementation of measures that contribute to economic growth. The research emphasizes the importance of targeted investments in infrastructure, support for small and medium-sized businesses, regulation of human capital development, promotion of tourism, and support for innovation. Integrating these elements into development strategies will help create a favourable environment for territorial communities, promoting economic stability and reducing inequality among them. Key words: Economic mechanism, development of territorial communities, support for small and medium-sized businesses, regulation of investment activities, elements of economic mechanism, efficiency, economic growth