Factors of influence of the institutional environment on the development of the region

This article examines the factors influencing the development and competitiveness of the region. The realization of the interests and needs of the region and the whole of the population living on the territory of the region depends on the state of the institutional environment of the region. The process of development of the region is multifaceted and can take place in the framework of several models, but any of them are backbone elements, the analysis of which is presented in the article. Considering the mechanism of the influence of the institutional environment on the competitiveness of the region, within the country, the paper examines three main areas of influence: at the level of legislation, fiscal policy and monetary policy. It also considers the impact of the economic and legal environment on the development of the region. The basic problems of the development of the region''s competitiveness are analyzed. The article explains the importance of identifying region-forming influence of institutional factors on economic development of the region, searching for ways to increase their positive influence and neutralize its negative effects.