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Nonprofit organisations in the regional economy: A theoretical approach to the research

Author

Listed:
  • Elena B. Dvoryadkina

    (Ural State University of Economics)

  • Dina M. Prostova

    (Ural State University of Economics)

Abstract

Achieving the necessary rates of regions and municipalities’ economic growth is impossible without the development of the third sector of economy constituted by nonprofit organisations. The paper justifies the relevance of creating a new theoretical approach for studying the functioning and development of nonprofit organisations in the regional economy. The methodological basis of the research is a combination of the theories of social market economy and regional socioeconomics, and a paradigm of regional governance. Current studies of nonprofit organisations mainly focus on the applied aspects of their functioning, and issues of their interaction with public authorities and local government, producing a wealth of scientific outcomes not only in the field of economics, but also in legal, political and social sciences. However, the theoretical and methodological developments for forming a conceptual framework to investigate nonprofit organisations in economic space of a region are obviously in deficit. The authors formulate a number of propositions to validate the importance of studying nonprofit organisations in economic space of the region applying the three theories. First, generalisation of the theory of social market economy enabled the authors to put arguments in favour of the importance of enhancing human potential in regions and municipalities against the background of the new industrialisation. Second, within the theory of regional socieconomics, the researchers prove the connections between the economy and society in a region; therefore, nonprofit organisations can be interpreted as a resource necessary for functioning and development of the society, as well as for identification and expression of its interests. Finally, interpretation of the paradigm of regional governance allowed drawing a conclusion that regional socioeconomic development encounters a twofold task: to create conditions for improving the standards of living and to balance proportions between the elements of the regional socioeconomic system (one of which is the nonprofit sector) in a way, which would ensure its efficiency. The research findings provide a theoretical basis for further exploration of the functioning and development of nonprofit organisations in regional economic space.

Suggested Citation

  • Elena B. Dvoryadkina & Dina M. Prostova, 2019. "Nonprofit organisations in the regional economy: A theoretical approach to the research," Journal of New Economy, Ural State University of Economics, vol. 20(4), pages 47-69, September.
    • Handle: RePEc:url:izvest:v:20:y:2019:i:4:p:47-69
    DOI: 10.29141/2073-1019-2019-20-4-3
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    References listed on IDEAS

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    1. Burton A. Weisbrod, 1997. "The future of the nonprofit sector: Its entwining with private enterprise and government," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 16(4), pages 541-555.
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    More about this item

    Keywords

    nonprofit organisation; region; regional economy; theory of social market economy; regional socioeconomics; paradigm of regional governance.;
    All these keywords.

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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