CONCEPTUAL ESSENCE OF THE LINK BETWEEN ECONOMIC BEHAVIOR OF HOUSEHOLDS AND TERRITORIAL DEVELOPMENT

Keywords: economic behaviour, households, economic development, causality, financial determinants

Abstract

The article deals with the issues of causality of the economic behaviour of households and development of territories, the causal relationship of which is determined by the needs, interests, motives, incentives and forms of economic decision-making by households. It was found that the effective financial system of the country has a positive effect on economic development and growth of national welfare, and the state and prospects of financial sources of households are a priority for the functioning of the economic system of the region or the country as a whole. It has been proven that household finances occupy a special place among the resources of the national financial market, which characterizes not only the standard of living associated with consumption, income and expenditure of households, but also represents an important investment resource in economic development. It is substantiated that the state financial policy has a significant impact on the well-being of communities by regulating the banking sector, ensuring social insurance payments and financial services, social policy in education, employment, pensions and financial investment programs. Theoretical approaches to the explanation of economic behaviour are generalized and the determinants of its formation for households are offered, the factors of influence on the economic behaviour of households are offered. The question of the structural impact of financial deprivation as a state of the household or community, for which there are no basic social needs, on the economic growth of the regions is considered. The definition of socio-economic deprivation is defined as the absence of social and economic benefits that are considered necessary for society, community or region. It has been proven that communities with high demand and low levels of basic needs often show low social and economic status compared to other neighbouring communities.

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Published
2021-02-23
How to Cite
Mulska, O. (2021). CONCEPTUAL ESSENCE OF THE LINK BETWEEN ECONOMIC BEHAVIOR OF HOUSEHOLDS AND TERRITORIAL DEVELOPMENT. Economy and Society, (24). https://doi.org/10.32782/2524-0072/2021-24-16
Section
ECONOMICS