INSTITUTIONAL INCENTIVES OF ECONOMIC STABILITY AND DEVELOPMENT: FINANCIAL CONCEPT AND ANTI-CORRUPTION EFFECTS

Vasyl Lagutin, Nataliya Petrenko

Abstract


The article is devoted to the disclosure of the content and role of institutional incentives in ensuring economic stability and development. An understanding of the economic content of the stimulating and coordinating functions of institutions is systematized. The analysis of the essence and forms of manifestation of the "stability vs development" dilemma is carried out. The complex of institutional incentives of stability and development as a complex unity of formal and informal alternatives, mechanisms and tools of economic development are highlighted. Also, the content of anti-corruption effects of the use of institutional incentives is disclosed. The main institutional prerequisites and the fundamentally basic provisions of the theoretical model of stimulating economic development are identified in the context of a combination of high-quality institutions, a coordination mechanism and effective incentives.
The main part of this research is the method of institutional analysis, on the basis of which the understanding of the economic content of the stimulating and coordinating functions of institutions is systematized. The method of the system approach is used in the analysis of the essence, and the manifestations of the "stability vs development" dilemma. Based on the methods of structuring and synthesis, a set of institutional incentives for stability and development as a complex unity of formal and informal alternatives is highlighted. Structurally logical analysis allows to identify the mechanisms and tools for economic development. The methods of comparison and generalization are used in disclosing the content of anti-corruption effects of the use of institutional incentives.
The importance of differentiation of legal institutions of state regulation, ensuring the observance of property rights and property liability and institutions that structure the market behavior of partners in an effective competition when making a choice between market and conducting mechanisms of stability and development
It is established that the effectiveness of institutional incentives is associated with the strengthening of property rights and a decrease in the corruption level. The mechanism of influence of institutional incentives on overcoming the conflict of private and public in the macro-financial sphere is revealed. It is established that the anti-corruption effects of institutional stimulation require ensuring the rule of law, effective law enforcement, maintaining democratic values, and creating a market competitive environment. In addition, an ineffectiveness of anti-corruption incentives without increasing the overall culture of the population, the formation of anti-corruption outlook is identified.
The need for a more independent civil society from the state, the highest degree of personal responsibility of individuals to provide institutional incentives that support stability, development and have the motivation effect in countries with emerging markets is determined. Institutional measures to shift the economies of emerging markets to the development path are established.

Keywords


institutional incentives; stability; development; corruption; anti-corruption effects

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DOI: http://dx.doi.org/10.21303/2504-5571.2019.00815



Copyright (c) 2018 Vasyl Lagutin, Nataliya Petrenko

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