FORMATION OF INFRASTRUCTURAL FACTORS OF ECONOMIC DEVELOPMENT OF THE REGION

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  Ihor Zvarych

  Olena Zvarych

Abstract

This article highlights the problems of determining infrastructural factors in the system of socioeconomic and cultural development of regions. Using systemic and synergetic approaches, methods of analysis and synthesis, induction and deduction, comparative analysis, it is justified that a term “infrastructure” in its modern sense is the basis of the economic system and its components, its internal organization, which guarantees its integrity. At the same time, the socio-economic meaning of the concept of “regional infrastructure” is to provide the necessary conditions for economic and social development of territories. The important role of regional infrastructure stems from its functions, which can be divided into internal (specialized) and external (regional). Internal functions are a number of important economic and social functions performed by each enterprise, and element, and subdivision of the regional infrastructure. At the same time, external ones are to ensure a comprehensive and properly balanced development of the region in accordance with its resource potential and certain specialization. In order to unconditionally improve the situation in the regional infrastructure, today many hopes of the regional and local authorities are placed on attracting external investment capital as the most promising area for financing its modernization. It is worth noting that a number of powerful foreign and domestic companies that have the appropriate experience in solving such large-scale problems are ready to become investors and implement the best achievements of organizational and technical experience in the relevant regions of Ukraine. At the same time, it is established that at this time the regions of Ukraine are trying to use their resources as efficiently as possible for further development, are looking for new opportunities to use their potential. Its disclosure and effective use, taking into account the defining regional features and the corresponding economic specialization, require a proper increase in the efficiency of all elements of the regional infrastructure. However, whatever the features of its classification, it is undeniable that it plays a key role in implementing the strategy implementation of appropriate processes of modernization of the regional economy. So, the term “infrastructure” in the modern sense is the basis of the economic system and its components, its internal organization, which guarantees its integrity. Meanwhile, the socio-economic meaning of the concept of “regional infrastructure” is to provide appropriate conditions for economic and social development of the region. Simultaneously, the more developed and modernized it is, the more attractive any unit of local self-government becomes for various investors, in particular, from the outside, which creates new jobs, reduces unemployment and increases consumer demand. In addition, today the regions of Ukraine are trying to make the most efficient use of their resources for further development, are looking for new opportunities to use their full potential. Its disclosure and effective use, taking into account regional characteristics and economic specialization, need to increase the efficiency of all elements of regional infrastructure. Contemporarily, despite the diversity of approaches to understanding its essence and the existence of different concepts, it is logical to highlight its specific levels, each of the elements of which performs its function in the economic system of the region. Therefore, the classification of regional infrastructure on a functional basis into production, social and market is the most accurate. As the analysis of its selected elements presented in this work shows, the close interrelation between them and economic development of regions is traced. The higher level of its development causes the growth of foreign investments and increase of labour resources, acceleration of economic development and growth of living standards of the population of the region. Conversely, lowering the level of infrastructural development slows down production and may lead to a decline in living standards. However, whatever the features of its classification, it is undeniable that it primarily plays one of the most important roles when it comes to implementing a strategy for modernization of the regional economy.

How to Cite

Zvarych, I., & Zvarych, O. (2021). FORMATION OF INFRASTRUCTURAL FACTORS OF ECONOMIC DEVELOPMENT OF THE REGION. Baltic Journal of Economic Studies, 7(1), 115-126. https://doi.org/10.30525/2256-0742/2021-7-1-115-126
Article views: 22 | PDF Downloads: 11

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Keywords

region, economic development, regional infrastructure, infrastructural provision, infrastructural objects of the territory

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