The regional economy in its structure can be attributed to the mesoeconomics and is a special economic entity, the main difficulty of which is the multiplicity of its forms.
The economy of the region is a subsection of economic science that studies the territorial organization of production activities. This subsection should describe economic phenomena, processes and other terms related to the development of regional economies and their harmonization with a single economic space.
The regional economy and management as an independent branch of economic science was formed thanks to the objective needs of the Russian economy. An important role in its formation was played by the need to ensure economic development in the market conditions of both the country as a whole and its individual regions.
This branch of science in the field of economics should study not only production forces, but also production relations in the context of certain territories. The regional economy and management are studying the patterns of deployment of productive forces in a particular territory , their functioning and interconnection when managing within territories. The tools to achieve the selected goals should be:
- statement of the theoretical problems of the development and functioning of territorial complexes from an economic point of view;
- the study of economic processes that occur at all levels of the state national economic complex and, of course, the interaction between these levels;
- the study of various factors (economic, social and political), which are fundamental in the formation and development of industrial relations at the level of a particular region;
- analysis of the causes of problems in the management of economic systems at the regional level.
Like any scientific concept, the regional economy and management has its own object, which is represented by industrial complexes of the regional type, industrial relations and production forces at the regional level.
When a planned economy existed in the country, industry aspects prevailed in the process management sector. At the present stage, the time of development of a market economy, the importance of regional and territorial aspects is increasing.
Regional economics and management as an economic discipline is quite closely connected with such economic sciences as:
- economic theory: the relationship is traced in the development, implementation of the laws and principles of economic theory in a regional aspect;
- a complex of sectoral economies: the regional economy reflects and details the functioning of individual economies at the territorial level;
- management and planning of the national economy: the connection can be found in the implementation of the principles of planning and management on the example of a separate region.
The effectiveness of regional management is inextricably linked with improving the living standards of citizens living in this territory. That is why economic development is a concept that is responsible for progress and focus in changing the structure, the interaction of its elements, as well as improving the quality of the functioning of the production system. Under this term should be understood timely modernization of production, updating its structure and improving the basic functions. In any case, all innovations aimed at the economic development of the regions should be progressive in nature and their main direction should be an increase in the production potential of the region.