Institutional Platforms of the Transformation of the Economy
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Date
2019
Journal Title
Journal ISSN
Volume Title
Publisher
Publishing House “Baltija Publishing”, Riga, LV
Abstract
EN: Abstract. Institutional transformations in economies of countries are considered as the basis of their civilizational
development. The concept was put forward that in order to ensure transformations in the economy, it is necessary
to promote the formation of a specific set of institutional platforms – new institutes and institutions that will
create an environment for the formation and development of a socially oriented market economic system of
society. The main controversial components of the institutional platform include: institutional changes in the
economy, the creation of the corporate sector, the development of human capital institutions. The purpose of the
paper. The purpose of the study is to promote and reveal the essence of the formation of institutional platforms
to ensure reforms of various components of a transformational economy. Methodology. Formation of institutional
platforms of the transformational economy is investigated on the basis of the theory of institutional changes
and such institutions of a market economy as property rights, the corporate sector, and human capital. Results.
Institutional platforms of transformations are presented as continuous informal changes that are fixed in the formal
institutional system of society in the form of legal acts, codes of conduct, and institutions designed to enforce
them. It is substantiated that in order to ensure institutional transformations in the economy, it is necessary to form
a dynamic institutional platform that determines the system of basic institutions. The process of formation and
effective use of the institute of human capital is analysed, which becomes a priority for the economic development
of the country’s potential. The presence of mature human capital predetermines the country’s economic potential
and its strategic growth. The main content of the new economy is that human capital turns from a resource to
the essence of development itself. An approach to developing an institutional platform for the development of
human capital as a process of natural accumulation or the forced introduction of basic institutions capable of
ensuring the emergence of new institutions or significantly modernizing existing rules is proposed. It is proved
that transnational capital erases economic, political, and cultural national differences, forms a favourable global
infrastructure, ensures the development of countries that define the basis of the world corporate economy.
It is substantiated that, institutionally, a corporation creates a new type of economic relations, which are reflected
in the rules and code of corporate behaviour. Institutional analysis created the conditions for developing a new
approach to designing the trajectory of the development of the national economy on the grounds that the
formation of a certain institutional system determines the trajectory of the further development of the state
and world economy. Practical implications. Theoretical research should be the foundation of state policy in the
management of the process of creating formal institutions as the basis of an institutional platform. This requires
certain clarifications regarding the possible gap between the rules declared by the legislation and the mechanism
for ensuring their observance, the basis for further research. Value/originality. The theoretical study is carried out
personally by the authors of this scientific article.
Description
V. Kolomiiets: ORCID 0000-0003-3427-8986
Keywords
institutes, institutions, institutional transformations, institutional platform, corporate sector, human capital, КФЕБ
Citation
Tkach, A. Institutional Platforms of the Transformation of the Economy / A. Tkach, V. Kolomiiets, M. Radieva // Baltic Journal of Economic Studies. – 2019. – Vol. 5, iss. 2. – P. 226–233. – DOI: 10.30525/2256-0742/2019-5-2-226-233.