METHODOLOGY OF LEADING ECONOMIC DEVELOPMENT

Authors

  • A. Kendyuhov State Economic and Technological University of Transport, Ukraine
  • Е. Yagelskaya Development Donetsk National Technical University, Ukraine

DOI:

https://doi.org/10.31498/2225-6725.28.2014.42278

Keywords:

economic system, transformation, development, model, energy approach

Abstract

In the scientific literature, the interest in the analysis of economic categories and processes based on energy approach is periodically increasing. Particularly relevant in the context of this issue the problematic of economic development remains, which is described using power structures more often. The purpose of the articleisto present and justify the concept of transformation of the system based on energy approach and to work out the structural model of leading national economic development. Subject of research is the transformation of economic system. Theoretical researches of world economic thought on assessment of the dynamics of economic systems served as methodological basis of this research. The methods of this research are comparative, structural analysis and logic synthesis, methods of induction and modeling and an integrated approach that combines the innovative basic principles of synergistic, systematic and evolutionary approaches. 

The resultsofthe analysis.In the article, the concept of transformation of economic system based on energy approach is presented and proved. Since energy is the driving force of any change, it can be considered as the driving force of development processes. The universality of the concept of energy is due to the possibility of applying to any forms of complex phenomena, so the amount of power primitive behavior in any complex phenomenon may be estimated with the help of energy. It is proved that the national economy is a system in which its own potential economic energy is incorporated. Potential economic energy consists of abilities of the various resources. If the vector of economic force coincides with the vector of time, positive work is done, which leads to the transformation of the system by converting potential economic energy to positive kinetic economic energy, which characterizes the development. The process of transformation of the economic system is based on the action of positive feedback and negative feedback. Lots of positive feedback will lead to overheating, crisis, degeneration of the economic system, and negative – to the attenuation, fading, and again to degeneration. A positive feedback leads to hyperbolic acceleration of development, creating the effect of a uniform distribution of events on a log scale of time. This requires an additional study of time features that were considered while the working out the structural model of leading economic development. The model reflects the function of economic energy, economic force and time, seal of which will compensate the expulsion of socio-economic system in the rarefied layers of time, leading to the decline of the system. Economic energy is represented by an array of abilities of the economic system. Economic force depends on the economic weight of the country and acceleration of the economic growth of the national economy. Work describes quantitative and qualitative changes in the system by the force. This allows calculating the efficiency of the system by which it is possible to judge about the state of the economic system. Conclusions and directions of further researches. Bringing the proposed model to the level of practical recommendations for the management of economic development and its evaluation based on the dynamics of the national economy will enable the timely adjustment of strategic and tactical problems at the state level. The prospects of further research are to develop and test a methodology for assessing the economic energy of the country.

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Published

2014-11-06

How to Cite

Kendyuhov, A., & Yagelskaya Е. (2014). METHODOLOGY OF LEADING ECONOMIC DEVELOPMENT. REPORTER OF THE PRIAZOVSKYI STATE TECHNICAL UNIVERSITY Section: Economic Sciences, (28), 25–30. https://doi.org/10.31498/2225-6725.28.2014.42278