The influence of globalization on selected constitutive and regulating elements of the economic mechanism on the example of regional economic growth of new and old member states of the European Union

University of West Bohemia, Faculty of Economics, Dept. of Economics and Quantitative Methods, Univerzitní 8, 306 14 Pilsen, Czech Republic

^* Corresponding author: novym@kem.zcu.cz

Abstract

The constitutive principles, which define the economic order in the basic outline and set its basic parameters, together with the regulating principles that regulate the economy in the logic of its desirable economic and social development, form the basic building blocks of the economic mechanism. Globalization has significantly changed economic policy in both practical and theoretical terms. It has affected both elements constituting private property institute, pricing mechanism, free competition, law enforcement, contractual freedom and perfect information, as well as elements regulating in the form of general rules, short-term and long-term regulation instruments. The subject of this paper is the description and analysis of the influence of globalization processes on the development of selected constitutive and regulating elements of the economic mechanism, which ultimately influence the development of individual economic units. These globalization processes have either contributed to the convergence of the economic level of selected European regional economies, ie to real convergence, or have contributed to deepening the gap between European regions. The surveyed economic units will be the regional economies of the new and old EU Member States, which are regularly monitored by the European Union Statistical Office. This analysis will cover regional economic growth, specifically the development of regional gross domestic products.