Marina ACHELASHVILI, Klimenti ACHELASHVILI

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Marina Achelashvili, Ph.D. (Econ.), research associate, Paata Gugushvili Institute of Economics of Georgia (Tbilisi, Georgia)

Kliment Achelashvili, D.Sc. (Econ.), associate professor, Tbilisi State University (Tbilisi, Georgia)

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REGIONAL MANAGEMENT OF ECONOMIC GROWTH

ABSTRACT

Macroeconomic management of economic growth is a complicated and not always effective process. Hence there is the need to look for new approaches, which provide for regional management of economic growth. In the final analysis, economic growth depends on the effective development of regions as subsystems of the national economy.

Regional management implies the need to measure the contribution of regions to economic growth. The authors propose a method for measuring their contribution to GDP growth based on the rate of GRDP growth and the share of regions in GDP. In order to improve the decision-making process, they use special production functions describing the operation of the national economy from a regional perspective and adapted to the process of regional growth management. These functions can be used to solve applied problems: in macroeconomic situation analysis and regional development forecasting, formulation of regional economic policy options, and simulation of the consequences of such policy at the national and regional levels.

The proposed analysis scheme for regional growth management has been tested in Georgia. But it can also be used in other countries and in studying global economic processes.

Introduction

The problem of managing economic growth is the central problem of macroeconomic theory and practice. The purpose of……………

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