Dobryk Liliia, PhD (Economics), Associate Professor, Doctoral Candidate of the Department of Finance and Economic Security, Dnipropetrovsk National University of Railway Transport named after Academician V. Lazaryan, Dnipro, Ukraine

ORCID ID: 0000-0002-3853-9285
e-mail: liliadobrik@gmail.com

Concept of Capacity Building of the State and its Regions and Mechanisms for its Implementation

Abstract. Introduction. The article considers the basic hypothesis of the concept of forming the potential of the state and its regions in the institutional system of the national economy.

Purpose. It has been established that the potential of the state is in close cooperation with the potentials of its regions. It has been found that the potential of a separate region manifests its capabilities, which make it possible to accumulate the necessary amount of resources for effective functioning, aimed at the formation of a developed infrastructure and a diversified economy. This made it possible to assert that the economic potential of an individual region is the material basis of the regional and national economy of the country. The basic hypothesis and the main (leading) idea of the concept, which connect the institutional, economic and social subsystems of the potential, are defined. The concept of forming the potential of the state and its regions has been developed, taking into account the influence factors on this process. The mechanisms for implementing the concept were grounded (at the state level, regional level and enterprise level).  These mechanisms combined economic methods, principles, and instruments for implementing the concept into an integral system in order to carry out structural reforms, which will ensure sustainable growth of the economy and help achieve the main Goal – sustainable economic development of the state and its regions in accordance with the direction of the national and regional policies.

Results. It is proposed to build the concept of forming the potential of the state and its regions on the basis of a systematic approach, according to which the concept is a system of interconnected blocks, is a meaningful interpretation of the conceptual basis of the process of forming the potential of the state and its regions.

Conclusions. As a result of the study, it was proved that the main idea of the concept of forming the potential of the state and its regions is to address the problems of their socio-economic development and should include factors that harmoniously link the institutional, economic and social systems of the potential of the state and its regions.

Keywords: concept; potential; state; region; regional development; state potential; region potential; concept implementation mechanisms.

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Received: 08 February 2019

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