This study has proven that the economic system is determined by various components, in particular, it includes the real sector of the economy, which is formed on mega-, macro, meso-, micro-and nano-levels. In addition, it was proved that the nano-level is determined by the activities of individuals whose economic activity begins with the birth and attitude of parents, attending various educational and upbringing institutions, and studying at university. A separate segment of the nano-level of the economic system is the baby industry responsible for the production of goods and services for children and future parents. All these aspects are indicators of the development of the baby economy. Such an economic category as the baby economy was separated and defined. The study uses the following methods: analysis, synthesis, structural analysis, systemic approach, observation, comparison, multifactor regression. These methods made it possible to achieve the results, which involve isolation of the baby economy as a component of nanoeconomy and definition of such components of the baby economic segment of nanoeconomy as a family or household economy, the baby industry, the economy of the educational process and upbringing. For this purpose, the value-institutional approach was applied. In addition, multifactorial analysis of the impact of indicators of the baby economy development on the population of a country with a transitive economy with incomes below the subsistence minimum was performed. This analysis identified a direct but minor relationship between these phenomena, which demonstrates the need to intensify and create a policy for the baby economy in similar states. The theoretical significance of the obtained results is determined by the introduction of a new economic category of 'the baby economy' for the formation of a nano economic component within socio-economic systems
