Institutional factors of increasing the efficiency of local public goods production in Ukraine

Abstract

Methods. The following methods were used during the research process: general and special – while clarifying the specifics of the institutional environment of the production of local public goods in Ukraine; economic and mathematical modeling – while determining the influence of the parameters of social capital on the effectiveness of the local communities functioning; analysis and synthesis – while identifying institutional mechanisms of increasing the efficiency of production of local public goods. Results. The features of the institutional environment of production of local public goods in Ukraine are analyzed. The essence of institutional locality as a result of the existing unity between people living in a certain territory is considered. There is studied the relationship between the state of the institutional environment of production of local public goods, which is based on the achieved level of social capital of a certain community, on the one hand, and the level of its financial results, on the other hand. Measures of strengthening the civil control over the producers are proposed as mechanisms of increasing the efficiency of local public goods production. Novelty. On the basis of economic-mathematical modeling of the relationship between the indicators of the financial condition of the united territorial communities of Ukraine and the parameters of social capital, there is proved the influence of those parameters on the effectiveness of provision of local public goods on a certain territory. Institutional mechanisms of improvement of the efficiency of production of local public goods in terms of strengthening the civil control over the activities of producers of these goods are proposed. Practical value. The proposed methods of stimulating civil activity of the population aimed at increasing the efficiency of the process of production and consumption of local public goods can be used in the activities of public authorities and public associations in order to improve the living standards of the population living in a certain area.