Economical sciences/Regional Economics
Kuchko-Badina Valeriya
Institute of the economics and
law of the NASU
Influence of
institutional terms on the economy of region
In the conditions of transitional period in the economy of Ukraine a
large value acquires the search of instruments of national and regional
management, which would create pre-conditions for effective development of
public production. Institutional operating and development of both national
economy on the whole and economy of separate regions conditions come forward as
one of such instruments.
From that, as far as such terms are favorable, fully the rates of the
use of basic factors of production depend: earth, labor, capital. Therefore,
creation of institutional terms is the substantial factor of development, both
state and regions.
Speaking about institutional terms, it is necessary to be stopped for
essence of concept "institute". D.C. North, one of the known
representatives of institutional economics, determines institutes as
"rules games in society, which are determined by the set of formal and
informal norms" [1, p. 3]. A. Schotter - as a "set
governed, which limited behavior of people and determine a social result from
activity of people" [2, p. 117]. Consequently, institutional terms are an
aggregate of norms, rules and instruments of state influence, which must
provide forming of favorable economic environment for effective development of
public production.
The primary purpose of research is determination of essence and role of
institutional terms for economic development of country and its regions.
Behavior of economic agents, conforming to one or another rule,
demonstrates certain regularity, i.e. is repetitive. However not only operating
institutes but also other mechanisms, having a natural origin, influence on
repetitive behavior of individuals quite not created by people.
Existence of institute talks that the actions of people interdependent
and influence on each other, that they cause consequences or external effects,
taken into account by other people or operating economic agent. Natural
mechanisms as a result of their objective existence result in similar results,
however repetitive actions appear the consequences of decisions, by the
accepted separate economic agents independent of each other and without the
account of possible approvals which the guarantor of one or another norm can
apply to them.
Importance of differentiation of behaviors, not conditioned by
institutes and determined by other reasons, related to the correct understanding
of value of institutes in an economy and other spheres of life of society, with
the decision of practical tasks of increase of welfare and efficiency of the
use of resources. If an analysis shows that some mass actions are inefficient,
the source of it can be searched both in the field of objective reasons and in
the field of institutes, regulative behavior.
Data, were got in researches of the second half 90 XX century, testify
to the economic value of different groups of institutes on the basis of
technique of analysis for realization of comparisons of countries and exposure
of influences of different factors on the economy growing. To the present tense
about ten of similar scale and expensive projects, which, differentiating
details, show statistically reliable positive connection between the indexes of
the economy growing of countries and "quality" of functioning in them
institutes, is executed: than higher indicators of the last, the higher and
steadier, in general case, demonstrated indexes of the economy growing [3, p. 28].
Institutes limit access to the resources and variety of variants of
their use, there for perform the duty of limitations in the tasks of acceptance
of economic decisions. Limiting the possible methods of actions and line of
behavior, institutes coordinate behavior of economic agents, appearing in a
situation, described by the terms of appendix of corresponding norm also.
Implementation the institutes of function of coordination of actions of
economic agents generates and stipulates the origin of coordinating effect,
essence of which consists in providing of economy for economic agents on the
costs of study and prognostication of behavior of other economic agents with
which they clash in different situations. The same, the coordinating effect of
institutes will be realized through the decline of level of vagueness of
environment, in which operate economic
agents.
Such decline allows to plan and carry out long-term investments. In
addition, facilities, economized on research and prediction of behavior of
contractors, also can be used in productive aims, strengthening a coordinating
effect.
Any institute, limiting the great number of possible methods of actions,
by virtue of it influences on allocation of resources economic agents,
performing the distributive duty. Not only those rules maintenance of which
directly is a transmission of blessing from one agent other (for example, tax
law or rules of determination of customs fees) influence on allocation of
resources and costs but also those which straight do not touch these questions
[3, p. 31].
In history of Ukraine there are three stages of introduction of
institutional terms for functioning of economy of regions.
1. Delegation Dnepropetrovsk, Donetsk, Zaporizhzhya and Luhansk to the
areas of plenary powers on a management by property (1993-1994).
2. Realization of economic experiment on the enterprises of metallurgical
complex of Ukraine (1999-2002).
3. Creation of the special economic areas (1999-2004).
Consequently, at creation of optimal terms of passing to the market
relations the specific of regions of country and resources, which are on these
territories, must be taken into account. Development and creation of
institutional terms which will assist the increase of efficiency of the use of
regional resources, is the competitiveness of home producers and development of
region an important task, ignoring of which inflicts irreparable harm to both
the economy of country, regions and their image.
Literature
1. North D.C.
Instiontionen, instituoneller Wandel und Wirtschaftsleistung. – Tubingen. – 1992.
2. Schotter A. The
evolution of rules // Economics as a process: essays in the new institutional
economics. – Cambridge, 1986. – P. 117-133.
3. North C. Epilogue:
Economic Performance Through Time, in Lee J. Alston, Thrainn Eggertsson, and
Douglass C. North, Empirical Studies in Institutional Change. Cambridge:
Cambridge University Press, 1996. – 400 p.