The mechanism of state regulation of the economy: the essential dimension

Kotelevets Dmytro
PhD (Economics), Doctoral Student (Economics), IHE «Academician Yuriy Bugay International Scientific and Technical University», Kyiv, E-mail: d.kotelevets21@gmail.com, ORCID ID: https://orcid.org/0000-0001-7778-6038

Cite this article:

Kotelevets D. (2022) The mechanism of state regulation of the economy: the essential dimension. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Mekhanizm derzhavnoho rehuliuvannia ekonomiky: sutnisnyi vymir; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 11-12 (300-301), pp. 41-49.

Abstract

The mechanism of state regulation of the economy is an integral component of the economic mechanism and plays one of the key roles in the development of the national economy. By its nature, such a mechanism is an extremely complex object that unites a significant number of subjects, including all economic subjects, concepts, structural elements and functions primarily to influence the economic behavior of such subjects. It is the significant number of types of economic activity carried out by households, business structures, state authorities in various spheres and branches of the national economy, the relationships between them that determine the complexity of the mechanism of state regulation and the importance of its research in order to find ways to increase the efficiency of its functioning. This determines the need for conducting new theoretical and applied studies in this direction. The article deepens the theoretical provisions of the functioning and development of the mechanism of state regulation of the economy in terms of clarifying the essence of such a mechanism. This was realized through the analysis of scientific works, which study the content of consonant economic concepts and specify the essence of such categories as "mechanism", "state regulation", "mechanism of state regulation", "state regulation of the economy". The results of the conducted research allow us to assert that the issue of ensuring the effectiveness of state regulation of the economy is extremely complex and largely determines the level of socio-economic development of all modern developed countries, allowing us to ensure their competitiveness on the world markets of goods, services, raw materials and capital. As a result, it was proposed to consider the mechanism of state regulation of the economy as an ordered system of interrelated components, namely, methods, tools, forms and principles that are used and can be applied by state authorities and local governments to influence the economic behavior of business entities.

Keywords

mechanism, state regulation, state regulation of the economy, economic subject, economic behavior.

JEL classification: O100; DOI: 10.32680/2409-9260-2022-11-12-300-301-41-49

UD classification: 338.2

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