TYPOLOGY OF INSTITUTIONAL FACTORS INFLUENCING THE DEVELOPMENT OF THE ECONOME OF THE NORTHERN REGIONS

Abstract

Institutional factors play a key role in shaping the direction and nature of regional economic development. They define rules and regulations that affect economic activity, the investment climate, and social progress in the regions. The author presents a comprehensive typology of institutional factors determining the socio-economic development of the northern regions. This typology identifies the key institutional factors affecting both the economy and the social sphere of the northern region. The study identifies various types of institutional factors grouped into seven categories, each of which reflects unique approaches to analyzing their impact on regional development. These groups include specific institutional characteristics that determine the characteristics and directions of development of different regions. The research methods included content analysis of domestic and foreign publications, semantic analysis of definitions of institutions, as well as a systematic approach involving the study of phenomena in their constant development and interrelation. This study is important for determining the optimal strategies for the development of institutions that contribute to sustainable economic growth and social progress in the regions. The novelty of the work lies in the proposed author's typology of institutional factors, which comprehensively covers all aspects of their impact on the development of regions. Understanding and analyzing these factors become an important tool for developing an effective strategy for the development of the region in conditions of instability of the national economic system. The application of this typology makes it possible to more accurately identify the weaknesses and strengths of the institutional environment of each region, which, in turn, contributes to the creation of targeted measures to improve the institutional environment and stimulate sustainable economic growth.