Abstract
In the context of the digital transformation of the region’s economy, the focus of attention of scientists and practitioners in terms of institutional changes is on rationalizing the economic relations of business entities. Institutions form the organizational-economic and regulatory-legal backbone of support for promising sectors of the economy, uniting not only social institutions, but also the structures that implement them. If laws can be changed quickly enough, informal regulations change gradually. Wherein, it is informal institutions that create the basis for evolutionary changes in legislative and regulatory rules. Nowadays, the set of regulations and means that are designed to provide institutional support to economic entities in the region is supplemented by the theme of sustainable development and the principles of environmental, resource-saving, social and corporate cooperation (ESG, Environmental, Social, Governance). From the point of view of these principles implementation, it is assumed to create and implement the modern sustainable ecologically-oriented ecosystem objects [1]. In our study, we proceed from the fact that the basis of the digitalization of the regional economy and its sustainable development is the institutional support of the economic system. It is the institutions that are provided with the most important role in ensuring the digital transformation of the basic sectors of the region’s economy. In its turn, the digital transformation of economic sectors depends on the market potential of the infrastructure, development of financial, legal and other aspects that implement the integration relations of economic entities. Taken together, these terms determine the competitiveness of the region’s economy. There is an objective need for development of theoretical and methodological provisions for formation of institutional support for the region’s economy in new post-COVID normality. Special attention of the authors was focused on the study of the institutional support of the digital sector of the economy of the Chechen Republic, which is a driving force and a tool for solving a whole range of economic, social, environmental and cultural problems that are urgent in the region. This circumstance determines the relevance of this study, the significance of the tasks set and the recommendations provided.
Highlights
In the context of digital transformation and the search for ways out of the global crisis caused by the COVID-19 coronavirus pandemic, it becomes vital to combine economic thought, scientific and practical conclusions with those real processes that are taking place in the economy of the country and its regions.The problem of the conditionality of institutional changes and economic growth is a complex and controversial socio-economic phenomenon
The mission of the digital economy formation in the Chechen Republic is defined by the Strategy of its socio-economic development until 2035
We relied on the basic provisions of the concept of sustainable development, the recommendations provided in the "Strategy for the socio-economic development of the Chechen Republic until 2035"
Summary
In the context of digital transformation and the search for ways out of the global crisis caused by the COVID-19 coronavirus pandemic, it becomes vital to combine economic thought, scientific and practical conclusions with those real processes that are taking place in the economy of the country and its regions.The problem of the conditionality of institutional changes and economic growth is a complex and controversial socio-economic phenomenon. In the context of digital transformation and the search for ways out of the global crisis caused by the COVID-19 coronavirus pandemic, it becomes vital to combine economic thought, scientific and practical conclusions with those real processes that are taking place in the economy of the country and its regions. The greater the uncertainty and the slower institutional transformations are implemented, the higher the risk of stagnation in the economy. Under these conditions, it is necessary to master actively the digital innovations, while avoiding mistakes in terms of institution building. The goal of institutional support for the region's economy is to ensure the sustainability and consistent reproduction of the socioeconomic integrity of the economic system, to achieve the maximum economic effect within the framework of limited resources, diverse transformations, and instability of the market environment
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