BUSINESS INFORM №6-2018

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Section: Economic Theory
UDC 338.12:330.1
Pelekh O. B.
Evolution of Views on Factors of Economic Development: Theories of Development «From Below» (p. 8 - 15)
The article is concerned with the group of theories of development «from below» which appeared as the answer to criticism of inadequacy in the practice of models of the opposite group – development «from above». The latter theories concentrated exclusively on production processes and economic entities, which proved to be insufficient. The conceptions of development «from below» are focused on endogenous factors, including intangible ones, which regional communities have available. Theories of development «from below» are internally heterogeneous, among them it is possible to distinguish three groups of theories. The first is a group of «soft» theories. Treating the region as a subject of development, they take as a basis the fact that, according to current dominant and proven practice tendencies, development takes place in the context of not only cooperation but also a significant dependence on near and far environment. These theories include the theories of integrated development of region. The second group of theories is the so-called institutional theories. They attach great importance to social and cultural phenomena as factors of economic growth. At the same time, these theories indicate the importance of «self-development» of region. To this group of theories can be attributed theories of endogenous development. The third group of theories recognizes subjectivity and self-development of region together with local territorial units as a starting point for development. These theories include the orthodox theories of regional development and theories of the independent region and local development.
Keywords: economic development, factors of economic development, theories of economic development, development «from below».
Fig.: 1. Bibl.: 16.

Pelekh Oksana B. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of Management, Rivne State Humanitarian University (12 Stepana Bandery Str., Rivne, 33028, Ukraine)
Email: [email protected]

Article is written in Ukrainian
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Reference to this article:
Pelekh, Oksana B. (2018) “Evolution of Views on Factors of Economic Development: Theories of Development «From Below».” Business Inform 6:8–15.

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