Author: Yevgeny G. Animitsa, Dr. Sc. (Geography), Prof., Head of Regional & Municipal Economics Dept; Olga Yu. Denisova, postgraduate, Jr. lecturer of Regional & Municipal Economics Dept.

Abstract: Formation of a new theoretical and methodological concept of economy management makes it important to understand the essence of production forces in the social development processes. The paper considers conceptual bases of production forces functioning as well as the peculiarities of formation, development and location of new structures in the economic space of the country and its regions.

Key words: productive forces; labour; means of production; a good; forms of productive forces placing; complexes; region.