DEFINITION OF THE CONCEPT OF TRANSFORMATION OF ECONOMIC SPACE IN THE SYSTEM OF CATEGORIES OF NATIONAL ECONOMY

• Main Author: I. Markovych
• Format: Article
• Language: English
• Published: LLC "CPC "Business Perspectives" 2014-06-01
• Series: Економіка розвитку
• Subjects: transformation of economic space; economic development; economic changes; national economy
• Online Access: http://www.ed.ksue.edu.ua/ER/knt/ee142_70/e142mar.pdf
• ISSN: 1683-1942; 2304-6155

Given the complexity of the structure, relationships and mechanisms of economic processes that the modern world economy is characterised by, it is necessary to clarify the methodological foundations of economic research, particularly in improving their conceptual and definitive aspects. In particular, it is necessary to separate the concepts "economic process", "economic change", "economic development", "transformation of economic space", etc. and identify their relationship. In the author's opinion, all these terms should not be used by scholars interchangeably, but they must have qualitatively diverse semantic content. The aim of the paper is to clarify the definition of "transformation of economic space" based on the analysis of current scientific approaches and considering the effects of the world economic development on theoretical concepts. The most general term that can be used in the study of economic systems is the "economic process", which is treated as any transformation, which is based on the change of the shape or particular characteristics of the objects at which the process is directed. A separate term that is often used in the formulation of definitions is "change". It is believed that economic change is a particular case of the economic process, as a "process" may include not only a change of the existing object or phenomena, but also create a wholly new object. Another concept used by scientists of various fields of research is the concept of development. In general, the term "development" means the process of transition from one state to another more improved state. Thus, under certain conditions, both the "economic process" and "economic change" can be defined as "economic development". For several recent decades the term "transformation of economic area" or "transformation of a socio-economic system" has increasingly been used. In the author's view, transformation of economic area is a category that shows the qualitative transformation of economic systems, characterises various forms of significant changes regardless of the outcomes vector, reflects a transition of an economic system to the next level of development. Thus, understanding the differences in these terms will allow using them according to the meaning they carry, and properly characterise certain transformations of the national economy.