G.A. Butrik, N.V. Bilan

Donetsk National University of Economics and Trade

named after Mikhail Tugan-Baranovsky, Ukraine

PECULIARITIES OF THE ECONOMIC DEVELOPMENT IN CONDITIONS OF THE MODERN ECONOMIC SYSTEM

In the economic literature much attention is paid to the study of the category «economic development», the problem of growth and development has always been decisive in the activities of practitioners and theorists from the beginning of a new era.

The study of development and economic growth was involved in the works of A. Smith, D. Ricardo, K. Marx, A. Marshall, J. Keynes, Joseph Schumpeter and others. Further development relating to contemporary conditions is investigated in the works of V.A. Bosenko, A. Rogachev, E. Savelyeva, A. Galchinskuy.

However, increased globalization processes and bundles of countries by level of development require further research to identify sources and factors of economic growth and development.

The purpose of the work is to identify patterns of development of the economic system under modern conditions, to define what impact has a cyclic system of links and relations on the process of socio-economic factors.

The doctrine of the nature of the development was considered by G. Hegel. He determined that the development does not have a closed loop, as occurs in a sequence from lower to higher forms, accompanied by a transition from quantitative to qualitative changes, and that the contradiction is the basis for development [1].

Today, the scientists reduce the problem of determining historic perspectives mainly to the transition from industrial civilized stage of development to postindustrial (information) stage. Although sometimes this stage is defined as a mixed society, yet it is hyperbolized, endowed predominantly positive signs caused by scientific and technical development of mankind deprive many troubles [2, p.78].

Economic growth is considered by the macroeconomic science as a part and one of the most important characteristics of economic development. Economic growth is positive if the real gross domestic product in the analyzed period exceeds its level in the basic year.

Given market conditions, trying to get a little profit from business activities even in a crisis, the owners are increasingly draw their attention to innovations and financial accumulation as a basis for technical development. This forced move is a major form of investment income during the economic depression that compared with investments in outdated technologies offers the hope of profit, because ultimately innovation» gain victory over the depression».

Innovation-based development is the main factor that gives the country the opportunity to achieve advanced social and economic progress. The achievements are explained by strategic objectives at the national and regional levels of socio-economic development of the country. Among the wide range of the tasks are those execution of which is most urgent for our country. This is primarily the development and implementation of national innovation models, activation of institutional transformations in social development, achievement of high economic competitiveness and improvement of regional competitiveness. The macroeconomic analysis uses the term “intensive” and “extensive” factors in the development and growth. The first group is, above all, innovative resources. Other factors may be attributed to the intensive to the extent where it is due to increase of their quality level. If GDP growth is mainly due to the increased number of resources used without significant changes in their qualitative level, this type is called the most extensive one. If resources are unchanged or even reduced when replacement is less productive to more productive factors, this type of reproduction is called mostly intensive. The purpose of economic reforms in transition economies lies in changing the type of play, in moving from extensive to intensive reproduction primarily by intensification of innovation factors and improvement of governance. Unfortunately, in Ukraine this goal was not realized. Innovation resources were not included as a starting mechanism of economic growth, and the accumulated scientific potential earlier was partly lost.

There are constraints of economic growth. They include restrictions within aggregate demand, sociopolitical atmosphere in the country, resource and environmental constraints, public intervention in the affairs of private business (legislative activity to regulate safety, health care workers and the environment, etc.) in the field of economic crimes , unfair treatment of labor stoppage during labor disputes, adverse weather conditions (primarily for agricultural production), i.e. everything that hinders productivity growth and hence economic growth in general. Sources of economic growth are growth of labor, capital growth, technological innovations.

In conclusion, we can say that objective criteria for economic systems interaction are: improvement, differentiation and integration of systems’ facilities; complexity of its internal and external communications; increase in information capacity of systems and increased development, the existence of factors of progressive systems development, globalization, intellectual relations of social systems; development of economic systems based on laws of society, a nature of the economy that leads to its balance.

The main feature of the modern economic system is the emergence of a new quality of its facilities and connections between them, the formation of fundamentally new conditions for functioning of economic systems.

References:

1. Hegel G. V. F. Science of Logic / G. V. F. Hegel. SPB.: Nauka, 1997. — 800 p.

2. Korniychuk L. The theoretical basis of the concept of sustainable development / L. Korniychuk // Economy of Ukraine. — 2010. — № 2. — P. 72—79.

3. Mensch G. Stalemate in technology : Innovations overcome the depression. — Ballinger — Cambridge (Massachusetts), 1979.

4. Roy Rothwell. The Changing Nature of the Innovation Process // Technovation. — 1993. — № 1. — P. 12—16.