INSTITUTIONAL CONDITIONING OF THE ECONOMIC FUNCTIONS OF THE STATE

Author
, Doctor of Sciences (Economics), Professor, Head of the Department of Economics and Competition Policy, Ukraine, Kyiv
, Doctor of Law, Professor, Kyiv, Prosp.Peremohy, 37

In heading

 Economic theory of law;

Signed print

 21.11.2017

Issues number

 2017 - № 4 (31)

Page

 93-105

Type of articles

 Scientific article

Code UDK

 330.837:351.82

ISSN print

 2411-5584

Abstract

 Problem setting. The problem of critical rethinking of scientific results of the genesis of the state’s economic policy, determining the forms of its implementation using new theoretical and methodological approaches, in particular, the principles and approaches of the civilizational paradigm, is relevant under current conditions of social transformations. In this case, it is necessary to use the methodology of institutional analysis in the study of the economic functions of the state, revealing their essential nature. The institutional conceptualization of the state’s economic functions should be based on a comprehensive analysis of a number of factors that determine the formation of formal and informal institutions.
Recent research and publication analysis. An actualization of the problem to analyze the role of the state in the regulation of economic processes is influenced by the growth of scale, interdisciplinarity and the global nature of research, as well as by the strengthening of its role in world development, in the recent years. The scientific community pays special attention to the need to find an optimal solution to the problems of economic inequality, environmental problems, social expenditures growth, since these measures can contribute to the construction of an efficient economy. Many scientists have analyzed the problem of the state functions in detail, yet there is no particular approach to the amount and content of such functions.
Paper main body. There is a need for expanding a methodological matrix of the study of economic policy of the state at the present stage of society’s development. The representatives of institutionalism view the economy as a system in which relations between economic entities are shaped by the influence of both economic and legal, political, sociological and socio-psychological factors.
Economic institutes provide for the establishment of the status of economic entities, the adoption of norms and rules of their activities, taking into account the characteristics of the sphere of economic activity in which they interact. The system of norms and rules establishes a certain procedure of actions of economic entities on the principles of freedom and equality, which, by their activity, ensure the achievement of the goals that lie at the basis of the corresponding economic function. The norms and rules established by the state are based on the supreme power, therefore they are obligatory for execution by all subjects of the economic system and serve as an external influence on their activity.
Conclusion of the research. The analysis of the institutional conditionality of the economic functions of the state makes it possible to conclude that the stabilizing role of the state in the economy is important. In particular, the role of the state should take the form of an automatic stabilizer, which ensures a balanced regulation of economic processes on the basis of developing a new paradigm for the disclosure of economic phenomena and processes. An expansion and activation of the economic functions of the state is an expression of the general evolutionary process of economic development. Having emerged during the evolutionary development of social relations as an answer to the changing role of man in the structure of production and the change in the relations that took place there, in the system of co-ordinates "person-economy-law-state", under the influence of globalization, the state became an important determinant of economic development.
Short Abstract for an article
Abstract. The article reveals the theoretical and methodological principles of analysis of the institutional conditioning of economic functions of the state. The main tendencies of formation and development of economic functions of the state have been revealed. The priority directions of implementation of economic functions of the state in the conditions of globalization have been determined.

Keywords

 state, economic functions, institutions, regulation, globalization, market.

Reviewer

External reviewer

Article in PDF

 93-105

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10.11.2017