Institutional factors in the sharing economy formation in developed and developing countries

Abstract

Subject. The article examines institutional aspects of the sharing economy development as a new business model, which has spread in conditions of accelerating socio-economic processes due to the introduction of digital technologies, and the transformations of behavior patterns of economic agents, caused by both technological and value changes. Objectives. The aim is to determine the influence of factors characterizing the institutional environment of developed and developing countries, on the sharing economy formation. Methods. The study rests on general scientific and special research methods, including statistical methods, grouping, regression analysis based on verification of relevant tests, etc. Results. The paper substantiated positive influence of regulatory factors (political stability, voting rights, and accountability) on the sharing economy development. It demonstrated that the sharing economy develops more efficiently in conditions of freedom (freedom of doing business, freedom of investment), revealed that increased tax burden has a positive effect on the development of the business model under consideration only in the least developed countries. The analysis of informal institutions confirmed negative effect of a high level of power distance on the sharing economy development. The paper also underpinned positive influence of social development factors related to the development of human capital. Conclusions. The significance of our findings is in the identification of factors that are most important for sharing economy growth in various countries, given their level of socio-economic development. The practical relevance of the study lies in the substantiation of importance of inclusive institutional environment for sharing economy growth.