Transformation of Approaches to Determine Influence Factors in the Economic Development Models

Abstract

Purpose: The research paper deals with the development of new scientific solutions regarding the identification of influence factors in the economic development models for developed and developing countries. The paper emphasizes the key significance of modelling within the framework of the study of economic growth at the level of world, national and regional economies (macro- and mesolevel). Design/methodology/approach: To achieve the objectives of this study the main components of economic development models were discussed. Findings: The transformation of the approaches of scholars to identify the influence factors within the historical change of the economic development models is noted. It was emphasized that the overwhelming majority of scholars use three factors of influence (land, labour, capital) and their derivatives in the “old”, “new” and regional economic development models, which is insufficient in the current conditions of economic systems at the macro- and mesolevel. Practical implications: Two related economic development models for developed countries and developing countries are proposed for use; key influence factors within these models are identified. Originality/value: It is emphasized that capital, human resources, level of innovations and competitive advantages are important for ensuring the economic development of developed countries, and the level of corruption and the level of the shadow economy are added to the above-mentioned components for developing countries.