Conceptual framework of the region research as an open economic system: synthesis of political economy and institutionalism

Regional economy issues are popular in modern economic literature, but majority of the studies are characterized as specific economic, organizational or managerial in their origin. At the same time, fundamental theoretical issues of territorial development should also be considered. The main object of this article is to reveal the regional economy concept, first, within the framework of the reproduction approach, secondly, within its multilevel nature, thirdly, in terms of its understanding as an open economy, and fourth, as the interrelation between the economic and social. From methodological point of view, the research is based on the interpenetration and complementarity of political economy and institutionalism, that means the combination of the objective foundations of processes and phenomena (the political and economic aspect) with the definition of conditions and prerequisites for their implementation, taking into account subjective factors (institutional aspect). This dual methodological principle can be applied to different objects. Thus, the concept of "region" is interpreted as an economic territorial formation with blurred boarders (an open economic system), but at the same time the orderliness of these boarders is provided through the use of the concept of an administrative-territorial unit. Structurization of regional reproduction as an open economic system has been made. The system involves the nomination of a number of fundamental problems (the four-block system of economic activities on the basis of an import-export principle, the corrective role of the market, the multidimensionality of production as a necessary condition for normal development, a structural shift towards trade activities and others) have been made. The research results can be applied in the theory of reproduction, in the field of specific economic, organizational and managerial sciences related to the region and regional economic policy. Further consideration of the open regional economic system implies the isolation of two-valued processes in the economy - a depressive and innovative one. The movement of the economy is carried out by identifying the braking moments, their elimination and the search for new market niches, new development impulses.