In many countries, regional policy has become one of the most important factors of economic and social development. In countries with developed market economies regional policy is shaped by various theories, which tried to justify the share of state intervention in economic processes in the country, the relationship between the state and region, as well as the efficient use of productive forces. The theories and paradigms of regional development have been analyzed in the article. The research has been aimed to generalize and systematize the existing theoretical approaches to regional economic development, to determine the feasibility of their use in the optimization of Ukraine regional policy. The methods such as analysis and synthesis of theoretical generalization have been used during the study. The focus was made on the most influential theories in areas of regional development. The results of the study showed that modern economics provides a number of alternative theories and models of regional development (dynamic and spatial development). The most influential theories in areas of regional development, which gained wide acceptance, are: neoclassical theory (built on the production function); cumulative growth theory (neo-Keynesian synthesis and institutional models); theory of regional growth through competitive advantages of the region (explaining the growth that is the result of competition); Modern theory (leaning on regional clusters, chains of added value, spatial lag econometric models, innovative factors). The practical significance of the results consists in the possibility of their use in defining the role and scope of government interference in economic processes taking place in the region as well as the relationship between the state and region. The analysis will facilitate theoretical substantiation of formation and implementation of an effective regional policy and reduce disparities between the poorest and richest regions, which are extremely important during the economic crisis. Further studies will be used to conceptualize the object model of modern regional development.