URBAN ECONOMIC SUBSYSTEM: ESSENCE, STRUCTURE

Abstract

This publication reveals the essence of the urban economicsubsystem. The research is based on a systematic approach becausethe city is a system of subsystems, each with its own complexstructure. According to the structure of the urban economicsubsystem is represented by the business-structures of the basicsectors of the economy, which form the basis of the economicsubsystem and play an important role in the accumulation andcirculation of financial resources within the city system, as well asinfrastructure. This business determines the specialization of the cityand is the basis for the development of clusters. Infrastructure (social,market, institutional) creates conditions for successful functioning ofthe basic business-structures of the secondary, tertiary sectors of theeconomy within the city. The development of this subsystem is due toa person who is simultaneously a manufacturer, a consumer and amanager. The economic subsystem develops in close interaction with thesocial and ecology subsystems. So, some authors view the economicand social subsystems as the socio-economic subsystem of the city.One reason can be considered that the authors view the socialinfrastructure of the city as a component of the social subsystem ofthe city, but it’s part of the economic subsystem of the city. Theeconomic subsystem of the city in interaction with other subsystemsforms the human potential, provides its development andreproduction. The management is played an important role in thefunctioning of the economic subsystem and the city in general.Therefore, the economic subsystem is the functioning ofmutually agreed basic business-structures and infrastructure withinthe city and the relationship between them, which are regulated by themarket environment and the city's institutions in order to meet humanneeds for goods and resources.