Hierarchical structure of the economic potential of a region

Introduction. The economic potential of a region is a factor in positive trends in the development of economic systems and in the stability of the state in the international arena. The mechanisms of such influence are based on internal processes taking place in the structure of the economic potential of a region. However, the lack of fundamental study of the structure of the economic potential of a region and the increased interest in this issue are topical and led to the choice of this research topic which is aimed at studying the internal structure of the economic potential of a region as well as at determining the characteristics of each of its elements. Materials and Methods. When determining the structure of the economic potential of a region, the methods of the empirical, experimental and theoretical levels were used such as the method of comparing different types of economic potential, the hypothetical and logical methods as well as the simulation method. Results. By comparing the types of economic potentials at different levels of functioning of the economy, the elements of the structure of the economic potential of a region were identified and analyzed, subordination between them was established. Presence of subordination made it possible to identify the hierarchical structure and to present it in the form of a 3-level hierarchy. For a more accurate understanding of the links and significance of the hierarchy of types of the economic potential of a region, the meanings and components of each level of the hierarchy were described. Discussion and Conclusions. A hierarchical structure of the economic potential of a region was revealed due to the existence of subordination between the elements of the structure. The research materials may be useful when planning economic development of a region and the state in order to strengthen market positions and competitiveness. The data obtained are of value both for economists and scientists involved in the study of regional economy.