Institutional Effectiveness Assessment Based on the Quality of Institutional Economic Structure in the Current Context

Natalya Pavlovna Vinogradova

doi:10.5901/mjss.2015.v6n5s4p576

Abstract

Institutional effectiveness is an integral condition of economic performance of any state. The article examines three clusters of countries according to the level of institutional effectiveness. Influence priorities of institutional structure quality on the level of institutional economic effectiveness are determined for each cluster. The model of institutional economic effectiveness is discussed for each cluster of countries. The model enables to differentiate institutional economic structure of countries depending on the level of institutional effectiveness. The article suggests a number of transformations aimed at increasing institutional economy. DOI: 10.5901/mjss.2015.v6n5s4p576

Highlights

Within an economic system institutions change or lose their qualitative characteristics in the course of some time
Rating of the countries with the highest level of institutional effectiveness as of 2014 It should be noted that most countries with the highest level of institutional effectiveness are the leaders in terms of global competitiveness criterion
Based on the presented models of institutional economic effectiveness it is possible to conclude that in the current context the highest level of institutional effectiveness is achieved by the quality of institutional structure in the developed countries

Summary

Introduction

Within an economic system institutions change or lose their qualitative characteristics in the course of some time. Some institutions advance by more rapid leaps, transforming or generating new economic management rules, other ones lose their operational relevance. This process represents institutional amendments, resulting in formation of a definite institutional structure in the economy. Optimal institutional structure provides effectiveness of the economy. Dysfunctional institutional environment, characterized by the loss of qualitative characteristics of the institutions, determines effectiveness underperformance, provoking economic recess. Decline in the qualitative characteristics of institutional structure of the national economy may have critical consequences with regard to the sustainable performance of institutional environment

Methods

Results

Discussion

Conclusion