Modern Economic Theory Research Articles

Ancient inequality and economic growth

The authors of this book are archaeologists who want to create a field they describe as ‘critical paleoeconomics’. Their quest is promising in several ways. For example, they are not averse to grand narratives and believe modern economic theory can offer insights into various features of ancient economies, including markets, trade, money and debt.

REGULATORY POLICY OF THE NATIONAL BANK OF UKRAINE: PROBLEMS AND WAYS TO IMPROVE

The article notes that the National Bank of Ukraine (NBU) must ensure price stability, high and stable level of economic development and optimal employment. Conceptually agreeing with this approach, the authors prove that the mechanism for its implementation does not ensure the fulfillment of the NBU mission. Analyzing changes in the banking sector of Ukraine over the last 2.5 years, the authors emphasize that due to the implementation of insufficiently balanced NBU regulatory policy, the volume of banks' investments in NBU certificates of deposit increased almost fivefold –– from UAH 95 billion. at the beginning of 2022 to UAH 456 billion at the end of the year. As a result of such an unsuccessful policy and contrary to economic logic, the NBU generated a huge positive liquidity balance in the banking sector, while the real sector of the economy suffers from a lack of funds Undoubtedly, such regulatory actions, which are "unique" in modern economic theory and historical practice, cannot stand criticism and should be rethought and significantly revised. The reasons and consequences of such an ineffective regulatory policy of the NBU are analyzed and important conceptual ideas aimed at improving bank management are suggested. According to the formulated conclusions, it is necessary to create an effective mechanism of credit monitoring in Ukraine. The activity of which should be devoted to assessing economically justified levels of different banking rates and analyzing innovations in the ideology of banking management that are used in other countries where central banks operate very successfully.

Нужна ли современным теориям экономики методологическая культура политико-экономического исследования?

In conditions when the main meaningful meaning of the choice of the Russian way forward is formed, the problem of the formation of economic theory, adequate to the modern stage of development of national and world economies, whose economic systems are in a state of deep transformation, is actualized more than ever. Economic science in the “new reality” is faced with such phenomena as the socialization of the economic life of modern society, the economization and financialization of politics and the politicization of the economy in the context of the globalization process, again highlighting the question of the place and directions of the development of political economy in economic science. Therefore, there is a serious question about the paradigm of modern economic theory, which would absorb the reflection of these new processes. For this reason, this material is a kind of attempt to integrate into the ongoing discussion about the place and development of political economy, about expanding the subject of economic theory [1; 2; 3; 4; 5; 6; 7; 8], offering an author’s methodological perspective on the principal issues of discussion. Participation in the discussion is also important from the point of view of the position of research teachers leading disciplines included in one capacity or another in economic theory. And this means - developing the criterion-value socio-economic worldview of future specialists, their methodological culture of research.

Modern economic theory and stylized facts

Modern economic theory and stylized facts

К вопросу о формах трансформации собственности: теоретический и практический аспекты

Introduction. The transformation of property as a system of complex continuous relations regarding a change in type, form, characteristics and any properties of the property itself is a discussed scientific problem. The purpose of the study is to analyze the property transformation and develop a classification of types of property transformation in modern economic theory and government practice. Theoretical analysis. This paper examines the processes of changing the economic essence of the concept of “property” and transformation of property, distinguishing two types of transformations: macrotransformation and microtransformation of property. Possession, use, disposal should be considered signs of ownership and peculiar conditions. A change in any of these signs – a decrease or increase in relation to a specific property indicates a transformation of the property itself. In cases where the owner receives the right only to dispose of property, transformation of property also occurs under the influence of processes such as easement, emphyteusis, and superficies. Results. Based on the analysis of property transformation processes in retrospect, a conclusion was made about their cyclical nature. Fundamentally new changes in property relations are observed in connection with the formation of post-industrial society. The dominant object of property is information and knowledge, which gradually adopted the characteristics of individual property.

Implementation of the Provisions of the Cluster Theory into the Accounting System: Genesis and Evolution

In current economic conditions, a large number of enterprises carry out their activities by joining into network (cluster) structures, which is one of the means of improving competitive relations in the external environment. To ensure the integration of the interests of participants in network structures by increasing the coordination and controllability of interactions, a significant place is given to the accounting system as the main source of information. The article aims to study the theoretical and methodological foundations of implementing the cluster economy concept in the accounting system. The methodological basis is the fundamental provisions of modern economic institutional theory and scientific works of scientists. As a result of the research, it was possible to analyze the historical aspects of the development of accounting support for managing cluster structures. The areas of development of accounting based on the provisions of economic theory and taking into account the specific features of cluster structures are identified and substantiated.

Comparative analysis of critical infrastructure and public significance enterprises

The relevance of this study is due to the increasing complexity and interdependence of enterprises in terms of critical infrastructure and social importance, which play pivotal roles in ensuring societal well-being, economic stability, and environmental sustainability. As technology evolves and new threats emerge, the need for a comprehensive, regularly updated evaluation becomes imperative. This article aims to identify and disclose the key aspects of a systematic comparative assessment of enterprises in terms of critical infrastructure and social importance. The leading approach to the study employs a combination of general scientific and specialized methods, drawing on modern economic theory and concepts from renowned scholars. This article examines the main aspects of conducting a comparative assessment of the activities of enterprises of critical infrastructure and social importance. The main characteristics of enterprises with critical infrastructure and social importance, which are important in the system of comparative assessment, are determined. General aspects that can be taken into account when evaluating these enterprises are reflected. The stages of comparative assessment of the activities of enterprises of critical infrastructure and public importance are presented, and the challenges and advantages of conducting a comparative assessment of these enterprises are also defined. The materials presented in the article hold practical value for policymakers, businesses, and academics, as they offer insights into improving the efficiency, sustainability, and impact of critical infrastructure and socially important enterprises.

The Second Leontief Paradox: Economic Theory or Economic Engineering?

The article analyzes the situation, conventionally called the "Second Leontief Paradox", when a recognized scientist, Nobel laureate and undisputed authority in the academic environment, it turns out, has practically no place in modern economic theory - neither within the "mainstream" nor in unorthodox directions. This paradox is considered in the context of four questions: (1) does Leontief have a “theory” at all; (2) to which theoretical school Leontief belongs or at least gravitates; (3) what is the main factor in the formation of the paradox under consideration; (4) what are the prospects for Leontief's approach in macroeconomics. To understand this paradox, it is proposed to use the terms introduced by G. Mankiw - an economist as a scientist and an economist as an engineer. It is concluded that there is still a gap between "theory" and "engineering" in economics. It is assumed that such a gap, including in connection with the rapid growth of a large amount of economic data and universal digitalization, may gradually decrease.

Leveraging Behavioral Economics to Decision Architecture

Modern economic theory has been dominated by neoclassical economics since the 1970s. Like any theory, neoclassical economics also has a series of assumptions underpinning it. These assumptions have been criticized and challenged on various grounds in the past several decades. The most serious assumption is the assumption of rational economic agents who aim to maximize their utility by analyzing the costs and benefits of every decision. The presence of “homo economicus” is very rare in our society. In fact, it is practically and psychologically impossible to be rational even most of the times. Empirical and experimental research heavily corroborates this fact. Despite such massive evidence, nearly all economic models and public policies use this distorting assumption in analysis and research. The result has been catastrophic, as can be seen in the Global Financial Crisis of 2008, the Dot-Com bust and numerous financial market crashes before that. Furthermore, the theory of rationality also reduces the effectiveness of government policies in achieving their objectives. Behavioral economics has emerged to address these fallacies of modern neoclassical economics and complement it to improve economic theory, methodologies and forecasting. Behavioral economics has mainly two branchesmacro theory which aims to design macro-economic models incorporating behavioral concepts and micro theory which explains the various biases that individuals, groups and institutions exhibit in economic and even social decision-making. This research is focused on micro-behavioral economic theory. While a colossal magnitude of research has been done in identifying, testing and explaining the plethora of behavioral biases, there is a dearth of research on systematically reducing these biases. This research aims to fill this gap by conducting research on private and public sector employees of 30 to 40 years age and testing for a significant difference in level of biases revealed between the two groups of employees. The research found that there is a significant level of difference in the rational decision-making behavior of the two groups of employees. It also discusses the applications of the findings and the further scope for research.

ПРИЧИНИ ВИНИКНЕННЯ ЕКОНОМІЧНИХ КОНФЛІКТІВ

The article defines the historical aspects of the formation of the concept of “economic conflicts”. Certain stages of development of economic conflicts are analyzed. It is noted that it is economic conflicts that cause global contradictions between states, groups of people, and between individuals. Economic conflict arises because of real or perceived problems that lead to disputes between parties. This conflict may concern various aspects of market relations, such as sales markets, consumers, finance, wages, etc. It was found that the course and resolution of various conflicts contain an economic component. It is substantiated that, in general, for the modern economic theory of conflict, the main efforts are focused on building models in which conflict behavior is combined with other, cooperative types of economic activity. It is noted that the conflict, in whatever form it appears, always goes through certain stages of development, which differ among themselves in qualitative characteristics and possibilities for localization and resolution. The historical aspects of the study of the concept of the problem of conflicts in the economy are analyzed. Unfortunately, at the moment there are many reasons for conflict situations, which are discussed in the article. It is noted that the policy of the Ukrainian government should be aimed at creating a clear and realistic strategy for the socio-economic development of the country, based on an analysis of the country's real economic situation and its available resources. The main role in the settlement of these conflicts should be played by the state. Since any system is destroyed from the inside by uncontrolled conflicts. Despite the diversity and meaningfulness of approaches to the study of the impact of globalization on the sources of conflicts, the issue of monitoring economic conflicts between the main economic centers of the world in the context of political conflicts of the 21st century, as well as outlining the prospects for European integration of Ukraine, remains insufficiently researched. Conflicts that arise in society need to be responded to immediately, because any system is destroyed from within due to uncontrolled conflicts.

Understanding the Intersection of Waqf and Pesantren Culture: A Study on Local Wisdom

Waqf, as an integral component of the Islamic philanthropic development model, Waqf plays a crucial role in enhancing educational quality. Its economic potential is further amplified through inter-governmental partnerships. This paper aims to elaborates on the potential of waqf as an economic instrument. Utilizing qualitative literature review methods, this article underscores the economic potential of waqf in addressing a range of pertinent issues. The findings of the study reveal that (1) waqf management aligns with economic capabilities; (2) economic management is in accordance with the practices of Prophet Muhammad and his companions; (3) management models are diversifying as an adaptive response to modern economic theory; (4) Waqf holds potential for economic development. Furthermore, this study's outcomes align with the waqf management concept implemented in several countries, demonstrating its success in managing waqf and providing community benefits, all grounded in Islamic teachings.

INSTITUTIONAL ENVIRONMENT OF THE DIGITAL ECONOMY SECTOR

The purpose of this article is to improve the theoretical and methodological foundations for studying the essence and peculiarities of development of the institutional environment of the digital economy sector, to allocate the components of its architectonics as the basis for forming a platform for the conceptual development of the national economy based on digitalisation. Methodology. The methodological basis of the study is formed by modern economic and sociological institutional theories, the object of analysis of which is the institutional dynamics of the environment: institutional theory, new institutional theory, substantivist theory, the concept of institutional density, the concept of institutional matrices, the theory of societal psyche. The paper uses the historical-logical and dialectical methods to study the contradictions of the processes of formation and development of the institutional environment, as well as the methods of system analysis to study the components of the architectonics of the institutional environment of the digital economy. Results. From the standpoint of institutional theory, it is formulated and substantiated that the institutional environment of the digital economy sector is a synthesis of a set of formal/іnformal basic/complementary institutions of the traditional and digital economies of different levels and institutions that are in certain interconnections and relationships with each other, forming a hierarchical integrity. Institutions determine the creation and operation of relevant institutions, which, in turn, ensure the implementation and enforcement of established rules and regulations. At the same time, the resilience and flexibility of the environment is based on the natural accumulation or forced implementation of basic institutions capable of ensuring the emergence of new digital economy institutions or significant modernisation of existing ones, which protects and promotes the development of the digital economy. The task of managing the institutional environment is to balance the ratio of institutions. The architectonics of the institutional environment of the digital economy sector is a system that combines a functional set of institutions of the traditional economy (management, labour, property, market, non-market), specific institutions of the digital economy (information, participation, digital space), global institutions, and regional institutions. Institutions as systemic elements, through implementation/legitimation mechanisms, form a set of institutions of the digital economy that mediate the interaction of economic actors, provide contracting, and mechanisms of institutional change. The most important institutions include innovation labs, research centres, technology companies, start-ups, cryptocurrency exchanges, digital agencies, consultancies, educational institutions, learning platforms, government agencies, legislative bodies, banks, digital banks, financial institutions, digital platforms, and digital networks. Interaction and mutual influence of institutions and institutions of the digital economy form the guidelines for selecting effective elements of the institutional structure from alternative institutional forms. The digitalisation of Ukraine, which is focused on the norms of international, European and regional cooperation, will facilitate Ukraine's integration into the European and global market of e-commerce, goods and services based on information and communication technologies. A new global economic architecture is being designed, into which new economic agents are integrating. At the same time, regionalisation processes are taking place, new regional clusters are emerging, and the country is being integrated into the European cluster. Practical implications. The elements of the architectonics of the institutional environment of the digital economy sector are identified and summarised by criteria, which makes it possible to identify the most problematic areas of institutional transformations and to formulate and select instrumental solutions to overcome them. The development of the relevant elements of the institutional environment of the digital economy sector contributes to a rapid and profound digital transition, when the results of digital transformation will become the basis of Ukrainian society and a key factor on the path to Ukraine's prosperity and welfare. Value/оriginality. It is established that the use of institutional analysis tools will allow determining the optimal directions of institutional building/transformation of digital economy institutions and minimising the social costs of Ukraine's evolutionary development. A two-level approach to designing the institutional environment of the digital economy sector in the national space is proposed: at the institutional level – as designing the socio-political and economic conditions for the development of digital economy institutions based on the development of digital products and technologies; at the individual level – as designing the functional place of a digital product in the human life space.

A Comparative Analysis on Economic Roles of Government and Principles of Taxation between Public Economics and Siyasah Shar‘iyyah

This research is an exploratory study on the similarities and differences of the justifications, objectives, roles of government and principles of taxation between public economics and siyasah shar‘iyyah. It aims to contribute towards integration of knowledge between modern economic theories and Islamic heritage in public economics. Despite similar focus on governance and social welfare, there is a lack of comparative study between public economics and siyasah shar‘iyyah in the literature. The research utilizes qualitative analysis on relevant textual materials on public economics and siyasah shar‘iyyah to identify and compare the major themes in terms of arguments for the establishment of a government, its economic objectives and roles, and taxation principles. The establishment of a government in public economics is based on the need to balance between efficiency and equity, address market failures, and provide public goods. Siyasah shari‘iyyah argues for a government based on fulfilling maqasid shari‘ah, uphold justice, and protect the rights of people. The principles of taxation in public economics often emphasize efficiency, equity, revenue sufficiency, neutrality, and administrative feasibility. In contrast, the principles of taxation in siyasah shar‘iyyah prioritize justice, prohibition of exploitation, funding public services, transparency and accountability, and wealth distribution in accordance with Islamic values. Originality/Value: The advancement of Islamic economics requires the integration of modern economic knowledge with divine revelation. Since public economics is a specialized subfield within economics, the integration efforts with siyasah shar‘iyyah have been notably deficient. This study aims to address this gap by undertaking a comparative analysis of fundamental principles and objectives between public economics and siyasah shar’iyyah.

Австрійська школа як напрям дослідження в економіці – правда та міфи

The article is concerned with studying of the Austrian school of economics, comparison of approaches of different representatives of the school to the analysis of basic economic phenomena and processes, determining differences between scientists' views and their research methods. The importance of the ideas of Austrian economists for modern economic theory in the context of interaction between the state and the market is emphasized. The purpose of the article is to study the theoretical concepts of the Austrian school in the context of the search for new theoretical approaches to solve modern economic problems. The methods of comparative studies and the problem-personified approach to the study of the history of economic ideas are used. A comparison of the main ideas of the representatives of the Austrian school is carried out in historical and logical sequence. The results of the study give a description of the main theses of Carl Menger, Friedrich von Hayek, Ludwig von Mises and their scientific followers. The nature of prices and subjective valuation as well as price stabilization policy are revealed in the paper according to Austrian tradition. Attention is paid to the subjective approach, namely subjective information and costs. It is emphasized that entrepreneurship is a major force and Austrian believe that an entrepreneur's profit comes from the assumption of simple identification of risk with error. Today, the Austrian approach is of particular relevance, according to which it is impossible to scientifically know what will happen tomorrow, since it depends mainly on knowledge and information that has not yet been created in the entrepreneurial process. The results of research are important for understanding the need to revival of interest in this strand of economics, which for decades had been treated marginally in textbooks of economic thought. Austrian theoretical approaches should be used to analyze the processes of modern economic development and solve complex multifaceted economic problems.

The essence of information as an independent economic category

In a market economy, it is customary to distinguish four main factors of production: labor, capital, land and entrepreneurial talent (or entrepreneurial abilities). But it should be noted that modern production is unthinkable without the functioning of the fifth factor — information. The question of the relevance of the research lies in the ambiguity and evolutionism of the category «information». Not only is there no single definition of a category, but the essence of this definition is not always precisely defined. It is worth noting that today the issue of separating information from knowledge in the context of economic theory is also interesting. The author presents a historical structural and essential analysis of the category «information» in the conditions of digitalization and informatization of the current economic system. The necessity of distinguishing this category into an independent production factor determining the implementation of management and investment decisions is noted. The article presents the author's proposals, which have elements of novelty, on the analysis of the influence of information as a production factor on the efficiency of production processes. Taking into account this factor will help the organization to optimize production processes, improve product quality, reduce costs and increase competitiveness. The proposed directions will allow structuring and analyzing data, developing improvement strategies, implementing changes and monitoring their results, so that the company can constantly improve production processes and be more successful in the market. The article will be of interest to theoretical specialists for the formation of a new reproductive system in modern economic theory, which is transformed under the influence of internal and external factors, as well as to practitioners engaged in the optimization of production processes and resource planning.

Improvement of the enterprise’s production program as a way to adapt to market changes

Purpose. Proving the possibility of improving the procedure to adapt the enterprise to market trends based on the self adjustment of its production program using the solutions of direct and dual linear programming problems with the help of the Microsoft Excel package “Search for solutions” add-on. Methodology. The methodological basis of the study is the provisions of modern economic theory, the fundamental works by foreign and domestic scientists on the formation of management systems and the peculiarities of enterprises’ adaptation to changes. The methodological apparatus of economic and mathematical modeling, operations research, in particular, the theory of duality of linear programming problems is widely used. Findings. The enterprise’s adaptation to changes in the external and internal environment with the help of the proposed iterative procedure of unused reserves redistribution between scarce resources made it possible to increase the products’ sale by reducing the manufacturing of one type of products and increasing the output of another one under the conditions of a stable range of products manufacturing at the enterprise. Originality. The article substantiates the procedure of the enterprise adaptation to changes in internal and external environments on the basis of self adjustment of its production program using the solutions of direct and dual problems of linear programming. Practical value. The article features the applied aspects to self adjust the enterprise production program, aimed to increase the efficiency of economic activity by means of step-by-step improvement of the optimal production plan (works, services).

WHY IS THE TRANSITION TO A GREEN ECONOMY IMPORTANT FOR ACHIEVING SUSTAINABILITY? A REVIEW OF SOME THEORETICAL APPROACHES AND EMPIRICAL RESEARCH PRESENTED IN THE LITERATURE

The transition to a green economy and sustainability have recently emerged as crucial topics in modern economic theory. The green economy is a sustainable vision for prosperity and growth that can enhance quality of life and the whole economy while increasing ecological and social well-being. Promoting the creation and acceptance of sustainable technological innovation is essential to a green economy approach. The major goal of this article is to highlight the importance and factors of transitioning to a green economy for achieving sustainability by reviewing the findings of theoretical approaches (microeconomic and macroeconomic) and empirical research. This article also contributes by outlining the crucial macroeconomic challenges of a green economy transition in achieving sustainability and responding to environmental hazards. In order to clarify the numerous aspects of a green economy, this article provides a generic framework that embraces a number of thoughts, ideas, and concepts and investigates how they connect to sustainability. This paper also addresses some difficulties that decision-makers must adequately recognise to pursue sustainable and efficient transformation and recommends a few directions for future research.

ГАРМОНІЗАЦІЯ ІНФОРМАЦІЙНОГО CЕРЕДОВИЩА СТРЕСОСТІЙКОСТІ КОРПОРАТИВНОГО СЕКТОРУ ЕКОНОМІКИ

Уже майже півтора року від початку повномасштабного вторгнення російських військ до України наш народ демонструє всьому світові наявність безцінних вітчизняних нематеріальних активів: культурних, етнічних, генетичних, інтелектуальних – у форматі мужності, рішучості, комунікативності, лідерства і стійкості. Завдяки синергійному ефекту їх поєднання з матеріальною складовою в цілому збережено макроекономічну, фінансову і зовнішню стабільність, хоча загрози деструктивних явищ посилюються. Тому, незважаючи на нашу незламність і підтримку Міжнародного валютного фонду та інше значне офіційне фінансування ззовні, перед Україною й надалі поставатимуть серйозні виклики й залишатимуться істотні потреби в грошово-кредитному ресурсі. Корпоративний сектор економіки потребує високих обсягів капіталовкладень, які є неможливими без гармонізації інформаційного простору ділової активності підприємців і роботодавців із світовими нормами і правилами дотримання принципів транспарентності, підзвітності, захисту прав власності, а також поліпшення інвестиційного клімату й подолання корупції на всіх рівнях. З використанням сучасних економічних теорій, досліджень, з одного боку, і досвіду корпоративного підприємництва в координатах регулюючої ролі наднаціональних, державних структур – з іншого, визначено методологічні засади просування найкращої практики звітування підприємств про сталий розвиток з метою їх подальшої імплементації в Україні. На основі аналізу ключових змін, які вносяться до Директив ЄС, інших міжнародних регламентів, запропоновано шляхи подальшої стандартизації розкриття інформації про стресостійкість, а також сталий розвиток суб’єктів господарювання. Обґрунтовано доречність інтеграції до звітного циклу підприємств даних щодо потенціалу шокової резилієнтності в умовах війни і повоєнної відбудови, які є вельми суттєвими.

ФОРМУВАННЯ ПОРТФЕЛЯ ФІНАНСОВИХ ПЛАТІЖНИХ ЗОБОВ’ЯЗАНЬ, ЗАХИЩЕНОГО ВІД СИСТЕМАТИЧНИХ РИЗИКІВ

Developing a model for studying banking operations related to financial risk seems to be very promising. Banks with heterogeneous fundamental funds often face a potential outflow of their creditors. The ability to affect a particular bank depends on the intermediate liquid value of its assets, whereas the latter value endogenously depends on the status of other banks in the asset market. Mathematical modeling of economic risks forms an idea of the peculiarities of modern economic risks, including financial ones. The study of various ECONOMIC-MATHEMATICAL MODELING Issue IІ (90), 2023 119 aspects of financial risk is one of the fundamental concepts of modern economic theory and management, as well as is increasingly being applied in practice in all areas of economic activity. Obviously, it is not necessary to use experience and intuition in economic activity. However, it is essential to possess the information about the causes of risk situations and to carry out qualitative and quantitative risk analysis. The purpose of the article is to develop a mathematical model of immunizing a portfolio of financial transactions and to study the immunization of a portfolio of financial payment obligations regarding the risk of changes in market interest rates. The article identifies the basic typical models of investment portfolios and studies the methods of portfolio optimization, using different types of financial instruments. Initially, it is necessary to study the net present value of payments (NVP), for which the NVP formula is introduced. Next, the main factor of change in the yield curve should be taken into account - a parallel shift by the value of h (NPV(h)) so that NPV(h)- NPV(0) is minimal, using a more complex deformation of the yield curve. To mitigate this risk, it is important to apply factor immunization, however, with a due regard to the three factors that describe almost all changes in structural interest rates. All studies are formulated in the form optimization problems. To protect a portfolio from market risk, its structure needs to be rebuilt. Therefore, the possible volatility and liquidity risks for the existing portfolio of financial liabilities have to be taken into consideration as well.

Political economy of socialism with Chinese characteristics: on the issue of intra- and interdisciplinary synthesis

Objective: to show the ontological potential of interdisciplinarity and paradigmatic pluralism in economic research by the example of the Chinese-specific socialism model and its description in Western socio-political discourse.Methods: qualitative methods (discourse analysis, comparative analysis, generalization).Results: the work shows the features of the discourse in modern economic theory regarding the problems of intra- and interdisciplinary synthesis. The economic mainstream, claiming the accuracy of its method of creating scientific knowledge, can and does become the basis of political knowledge and ideological judgments. Describing certain aspects of reality, the mainstream normalizes them, and sometimes elevates them to the rank of a rule. Based on the analysis of the Chinese model of economic reforms, the article shows that in Western socio-political and scientific discourses regarding this model, both at the stage of their beginning and now, there are erroneous ideas and expectations about the purpose, content and results of the reform process. The root cause of this false perception is, assumingly, the disciplinary isolation of economics, as economics is considered to be a universal extrapolitical and extra-cultural constant. To confirm this thesis, the main stages of the transformation of the ideology of building the Chinese economic model, its transition from an anti-market and anticapitalist position to a Chinese-specific socialism model are considered. It is shown that among the trajectories of China’s future development, Western economists and politicians saw only the two main ones: creeping liberalization and limiting the influence of the state in the Chinese economy, accompanied by democratization of the political sphere, on the one hand, and reaching the limits of economic growth possible for countries with authoritarian institutions, on the other. However, the collective action factor ignored by researchers has formed a stable growth economy, not accompanied by political liberalization.Scientific novelty: consists in comprehending the discourses about the Chinese economy as a result of the challenge posed by the Chinese reforms to mainstream political economy.Practical significance: the provisions and conclusions of the research can be further used to study the influence of economic theory on socio-political discourses and political decisions.