CONCEPTUAL FOUNDATIONS OF REGIONAL DEVELOPMENT IN THE CONTEXT OF REGIONAL FOREIGN ECONOMIC RELATIONS AMPLIFICATION

Abstract

Topicality. The article explores the issue of determining the direction in which the region should develop its foreign economic relations, how to rebuild a regional economic system in order to realize their resources and opportunities for growth in the globalized international economy in the most effective way. Theoretical and conceptual foundations of the regional foreign economic relations development, analysed in this article, determine a role of commodity exports, imports of modern technologies, investment (including foreign capital), innovation, institutional environment and entrepreneurship for regional development. Among other issues addressed in this article, special attention was paid to analysis of changes in regional development paradigms.Aim and tasks. The aim of the article is to study theoretical and conceptual foundations of regional development through by means of regional foreign economic relations amplification. In addition, the objectives of the current study include: highlighting changes of scientific views on paradigms of regional development in terms of areas of amplification of regional foreign economic relations, identification of the main contradictions and temporal context of the proposed theories and concepts of regional development, addition to the main trends in the theoretical and conceptual basis of regional development in recent years.Research results. The article considers a formation of theories and concepts of regional development, which provide for the intensification of regional foreign economic relations. The analysis of theoretical and conceptual bases of regional foreign economic relations amplification testifies the transformation of paradigms of regional development according to a context of times in which there were changes of scientific views on the reasons and consequences of regional growth. The article examines the evolutionary transformation of regional economic development paradigms through the following theories: spatial location theory, theory of international (interregional) trade, Keynesian theories (export base theory and input-output model), neoclassical theories of regional economic development, concepts of economic rationalism, comparative, competitive and common advantages, theories of globalization, sustainable development, regional self-help and endogenous development, a new growth theory. Based on the analysis of the regional development theoretical foundations, the article establishes that the main theories and concepts of regional foreign economic relations mostly focused on consideration of such incentives as: capital investment, technological innovation, foreign trade, agglomeration effect (economies of scale), as well as a level of institution development.Conclusion. The article states that there is no single generally accepted theory for providing scientific approaches to a complementary amplification of regional foreign economic relations. Certain theories and concepts, which form theoretical foundations for the regional foreign economic relations amplification, have relatively practical application only in specific cases. Thus, by means of an application of the postulates of the theory of international and interregional trade, the optimal structure of the external trade turnover of the region and the parameters of determining the commodity positions for import substitution are determined; neoclassical theory of spatial equilibrium serves as a theoretical basis for choosing investment attraction’ direction in prioritized regional production and infrastructure facilities; new regional growth theories (including, of endogenous regional development concept) serve as a theoretical background for choosing tools for foreign economic activity intensification in order to ensure regional development. At the same time, achieving regional growth, in the modern sense, is not possible without considering principles of sustainable development and self-sufficiency of a territory, therefore, an amplification of foreign economic relations in the region, even in a globalized world, should be based mainly on endogenous factors, while strengthening its development with an innovation and investment components from the external environment.