The Influence of Political Aspects on Economic Development: an Analysis of the interaction of Management Spheres in the Modern World

(Pages 1438-1446)

Natalia Serbina1,*, Valentyna Daineko2, Iuliia Tsyrfa3, Mariia Rozhkova4 and Nataliia Lytvynenko5
1Associate Professor at the Chair of International Media Communications and Communication Technologies, Ph.D. in History, Taras Shevchenko National University of Kyiv, Educational and Scientific Institute of International Relations, Chair of International Media Communications and Communication Technologies, Ukraine.
2Head of the Chair of Foreign Languages, Ph.D. in Philology, Professor, Taras Shevchenko National University of Kyiv, Educational and Scientific Institute of International Relations, Chair of Foreign Languages, Ukraine.
3Associate Professor at the Chair of International Regional Studies, Ph.D. in Political Science, Associate Professor, Taras Shevchenko National University of Kyiv, Educational and Scientific Institute of International Relations, Ukraine.
4Associate Professor at the Chair of Foreign Languages, Ph.D. in Law, Associate Professor, Taras Shevchenko National University of Kyiv, Educational and Scientific Institute of International Relations, Chair of Foreign Languages, Ukraine.
5Associate Professor at the Chair of International Information, Ph.D. in Economics, Associate Professor, Taras Shevchenko National University of Kyiv, Educational and Scientific Institute of International Relations, Chair of International Information, Ukraine.
DOI: https://doi.org/10.55365/1923.x2023.21.158

Abstract:

The article is aimed at studying the mechanisms of interaction between political decisions made at different levels of management and the economic dynamics of countries and regions. By analyzing specific examples and cases, the article examines how the political context affects the investment climate, market regulation, trade relations, and other aspects of the economy. The article highlights the key factors of interaction between the political sphere and economic development and emphasizes their importance for the formation of effective management strategies in modern conditions. The purpose of the article is to analyze the interaction between political aspects and economic development in the modern world and to build a model of the interrelationships of the system of factors of political and economic development. The object of the article's research: is the interaction of political aspects and economic development. The subject of the article's research: the analysis of the interaction between the spheres of management and their influence on economic development in the modern world. First, an analysis of scientific sources, publications, reports, and statistical data was conducted to gather information about the impact of different political regimes on investment climate and economic development. Empirical research was applied, which included analyzing statistical data on the attraction of foreign investments under various political conditions and the identification of correlations. The case study approach was employed to examine how political choices influence market oversight and shifts in economic composition considering technological advancements. The relationship between political changes and international trade relations was studied using correlation-regression methods. The analysis of the role of political factors in the development of innovations and the scientific research sphere was carried out using the methods of comparative analysis and synthesis. Economic and mathematical modelling methods were used to develop a model of the influence of political aspects on economic development. Statistical methods were also used to confirm hypotheses about the influence of political aspects on economic development and to confirm the relevance of the developed model. Strategic planning methods are used in the development of management strategies aimed at the interaction between the political sphere and economic development. The use of these complex methods makes it possible to systematically investigate the influence of political aspects on economic development and create a foundation for the formation of effective management strategies. Consequently, the research led to the identification of a significant finding. The role of political factors is pivotal in the advancement of the economy, exerting influence over the establishment of a conducive environment for investments, the maintenance of macroeconomic equilibrium, the allocation of resources into human capital, the enhancement of infrastructure, and the implementation of efficient institutional frameworks. Fostering an environment favourable for investments encourages both foreign capital inflow and the growth of local enterprises. Ensuring macroeconomic stability is the basis for economic growth. Investments in human capital increase labour productivity and contribute to economic growth. Infrastructure development is a necessary condition for the efficient functioning of the economy. The introduction of effective institutions helps protect property rights and ensure the rule of law. The economy can experience both advantageous and adverse consequences due to governmental choices in the political realm. Effective policies that promote economic growth can make a country more prosperous and provide better living conditions for its citizens.


Keywords:

Analysis of management spheres, Economic development, Economy, Global dimension, Political decisions.


JEL:

JEL: O11; O12; O13; P18.


How to Cite:

Natalia Serbina, Valentyna Daineko, Iuliia Tsyrfa, Mariia Rozhkova and Nataliia Lytvynenko. The Influence of Political Aspects on Economic Development: an Analysis of the interaction of Management Spheres in the Modern World. [ref]: vol.21.2023. available at: https://refpress.org/ref-vol21-a158/


Licensee REF Press
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