The Determinants of Economic Growth of Regions in the Newest Economic Theories

Abstract

None of the existing theories of economic growth of regions has by now offered any opportunity for a complete solution to the problems. New realities of our time require new scientific approaches to substantiating the economic growth of regions, searching for determinants, leverages, principles. The article is aimed at theoretical-methodological substantiation for the economic growth of regions in modern conditions, defining the main determinants and principles of growth. Based on the analysis of the newest theories of economic growth of regions, it is stated that the main determinants of economic growth of regions in today’s conditions are a person with its human capital; the innovations that provide a breakthrough; informatization of all social and economic processes of society. A change in the emphasis of human capital has been made: if in the past attention has been focused on its educational component, then in modern conditions, knowledge, talent, creativity come to the fore. The emphasis in innovation development is the need for symbiosis of innovations and competitive advantages of territories. The peculiarity of the development of regions in modern conditions is their orientation to internal factors and the mechanisms of economic development, because economic growth is generated within the system. There was also a shift of emphasis from a stable development of regions to inclusive, which, in addition to the ecological component, takes into account the need to involve all members of society into solving problems of all territories. The determinants, goals, principles and levers of economic growth of regions are allocated in terms of the newest economic theories.

Keywords

• region
• economic growth
• human capital
• innovations
• principles
• determinants