Cognitive Modeling of the Diversified Rural Economy Development in the Context of Digitalization

Abstract

Currently, Russia's economy is undergoing a global transformation caused by digital technologies. The changes taking place contribute not only to favorable changes, but also entail the emergence of a number of potential risks and adverse consequences. Considering the most negative impact it has been revealed that the consequences can affect rural areas, whose economy is currently in need of the full support in connection with the diversified development path. The article presents the knowledge about the diversified development of the rural economy in a form considering the modern realities of the digital economy. Since the rural territory is viewed as a complex and multifaceted system it cannot be studied from the perspective of one or more scientific approaches. Thus the cognitive modeling methodology has been used as the basis of the study. The methodology is based on the use of various cognitive tools that focus on the presentation and targeted interpretation of new knowledge about the subject of study that is diversified rural development. The developed cognitive model clearly represents the system-based cause-and-effect sequence of "goals -functions structurefunctioning -result". It takes into account the cyclical nature of negative impacts and the characteristics of responses stratified by economic levels. The model is based on the dynamic unity of the processes of functioning of its components under the influence of the external environment, which allows you to form its profile patterns. The functional and structural block includes the structure, functions and factors affecting the diversified development of rural areas. The object-subject block that contains the object subsystem (a set of economic entities, population, resources, infrastructure) and the subject subsystem (institutional structuresorganizational and formal institutions). The cognitive block of the model includes both theoretical and methodological basis for the study of diversified rural development. The use of the above approach results in the obtaining the emergent effect due to the implementation of target settings within each functional special purpose cycle.

Do Knowledge Economy Indicators Affect Economic Growth? Evidence from Developing Countries

“…Whereas Hulten showed that knowledge-related capital is an important source of economic growth in many developed countries, and it is positively related to the average per capita income [36], in Kenton, the knowledge economy is defined as a system based on intellectual capital with a large part of its economic value consisting of intangible assets such as the value of labor knowledge. Zakshevskii et al indicated that modern societies are facing a great challenge represented in their ability to reach the stage of the knowledge society, The progress and development of any society have become dependent on its ability to invest knowledge effectively, and this is achieved through the investment of education to apply scientific cognitive theories [45]. It was also defined as an economy in which the main components of economic growth depend on intellectual capabilities and not on material inputs and natural resources Gupte.…”