THE INSTITUTIONAL APPROACH TO THE STUDY OF POTENTIAL DEVELOPMENT OF THE TERRITORY

Abstract

Purpose: the article is devoted to the application of the institutional approach to the study of regulatory instruments of territories development and justification of the need to align the mechanisms for allocating funds for their development, with the potential of local socio-economic systems (SES). Discussion: the methodological basis of the study is the approaches to the study and implementation of relations of the territories that are considered in the context of institutional theory and concepts of the regional (local) development in relation to the system of the budget and property, investment and entrepreneurial spheres of activity of authorities. As a tool we used statistical methods of data collection and processing program-target method, experimental design method based on orthogonal central composite designs of the second order. Results: the author suggests a mechanism of centralized allocation of funds for the development of territories in accordance with risks and the potential of the local socio-economic systems.