THE EVOLUTION OF INSTITUTIONS FOR THE DECENTRALISATION OF ECONOMIC POWER IN UKRAINE: THEORETICAL FOUNDATIONS AND MACROECONOMIC EFFECTS
DOI:
https://doi.org/10.37332/Keywords:
decentralisation of economic power, institutions of economic power, institutional environment, macroeconomic effects, regional economy, local budgets, transformation processes, post-war recovery, adaptive efficiency of the institutional environmentAbstract
Prushkivska E.V., Prushkivskyi V.H. THE EVOLUTION OF INSTITUTIONS FOR THE DECENTRALISATION OF ECONOMIC POWER IN UKRAINE: THEORETICAL FOUNDATIONS AND MACROECONOMIC EFFECTS
Purpose. The aim of the study is to conduct a comprehensive analysis of the evolution of institutions of economic power decentralization in order to identify their macroeconomic effects and substantiate the peculiarities of their formation in Ukraine.
Methodology of research. In the course of the research, institutional and evolutionary approaches were used to analyse the development of institutions of economic power decentralization. Systemic and structural-functional analysis was used to identify the administrative, political, fiscal and institutional dimensions of decentralization, as well as a historical-logical method to study the stages of their evolution. Comparative analysis made it possible to compare theoretical approaches and national features of the formation of decentralization institutions. The empirical basis of the study was statistical data on local budgets, gross regional product and regional development indicators, which made it possible to assess the macroeconomic effects of decentralization in Ukraine.
Findings. It has been established that decentralization of economic power is a complex institutional process, the evolution of which occurs through a combination of administrative, political, fiscal and institutional changes. It has been substantiated that at different stages of the development of decentralization institutions, different macroeconomic and regional effects are formed, determined by the level of autonomy of territorial communities, the degree of institutional maturity and the adaptive efficiency of the institutional environment. It is shown that in the conditions of martial law, decentralization has transformed from an instrument of development into a mechanism of economic stability and crisis management. The growing role of local budgets in supporting economic activity in the territories has been revealed, with a simultaneous increase in regional asymmetry. It has been proven that in the context of post-war recovery, decentralization institutions are of strategic importance for the restoration of the regional economy and the implementation of multi-level self-government policies.
Originality. The scientific novelty lies in the comprehensive combination of evolutionary and institutional approaches to the analysis of the decentralization of economic power, which made it possible to consider it not as a separate management reform, but as a dynamic process of transformation of economic power institutions. Unlike existing studies, the interconnection between the stages of evolution of decentralization institutions and the change in the nature of their macroeconomic effects in the context of a transitional economy and military shocks is substantiated.
Practical value. The results obtained can be used by state and local government bodies in shaping policies on decentralization, regional development and post-war recovery. The proposed approaches create an analytical basis for assessing the economic capacity of local communities, improving inter-budgetary relations and increasing the effectiveness of multi-level self-government in Ukraine.
Key words: decentralisation of economic power, institutions of economic power, institutional environment, macroeconomic effects, regional economy, local budgets, transformation processes, post-war recovery, adaptive efficiency of the institutional environment.
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