Institutional Mechanism For The Restoring Of The Reginal Business Activity

Abstract

The article reflects the results of the studies of forming an effective institutional mechanism for restoring business activity of regional socio-economic systems. The main parameters of the institutional mechanism for business recovery are defined: the purpose of implementation, the application area, the functional content and the costs of the functioning. It has been revealed that the institutional mechanism of interaction between the state and economic entities should be differentiated by the level of socio-economic development of the regional socio-economic systems. The functional filling of the institutional mechanism should be based primarily on a comprehensive analysis of the business activity of the regions taking into account all its components: production, investment and innovation activity. This approach will reveal specific problems in the regional development, which should be addressed by the regional authorities in the first place. In order to better identify the problems hindering the recovery of the business activity in the regions, it is necessary to determine the nature of their manifestation: the insufficient level of development capacity in the region or the low efficiency of its use. In order to improve the efficiency of the institutional mechanism functioning, it is proposed to use a certain set of assessment indicators of the region economic potential and efficiency use as targets for the state regional business recovery programs. It is noted that the main condition for the effectiveness of the institutional mechanism is the study of the transmission mechanism to stimulate business activity of the economic agents of the regional systems.