Effective institutional environment as a factor of stability of the economic system

The current level of public administration involves the use of legal system as the only legitimate means of influencing participants in economic relations. By forming the legal system that acts as institutional environment for the national economy, the state determines the directions of economic development, sets incentives and restrictions for the development of certain sectors of the economy. The quality of the environment depends on the level of competence of government bodies and consideration in the process of creating formal rules which determine the directions of the economic development of objective economic laws. The purposes of the study are to elaborate criteria that the institutional environment should meet in order to act as a formal basis for sustainability of the economic system, and to justify the need to bring economics and law closer together in the process of economic analysis. The relevance of the study is due to the lack of a systemic connection between economic and legal sciences within the framework of economic analysis of the processes of development of the social system, which can have a negative impact on its reliability, and, as a consequence, on the effectiveness of the economic policy formulated by the state. The work establishes dependence of the quality of the institutional environment on the quality of the institutional structure, shows individual endogenous factors that negatively impact its effectiveness, and defines the directions for the formation of the institutional environment of the national economy, the implementation of which will achieve compliance with the goals and results of public administration of the economy. The study contributes to the development of institutionalism, promotes the creation of a unified institutional economic theory and conditions for its application for conducting an interdisciplinary economic analysis of various aspects of the development of Russian society as a complex social system.

1. Mankovsky I.A. The potential of applying institutionalism as a theoretical framework for public administration. State and Municipal Management. Scholar Notes. 2024;1:59–66. (In Russian). https://doi.org/10.22394/2079-1690-2024-1-1-59-66

2. Mankovsky I.A. Conditions of institutionalism application as a theoretical basis for economic analysis. Vestnik universiteta. 2024;2:95–103. (In Russian). https://doi.org/10.26425/1816-4277-2024-2-95-103

3. Rоdionova T.N. Representatives of economic thought on the impact of the right on economic development. Scientific Papers of the Faculty of Law. 2021;2:56–61. (In Russian).

4. Maksimtsev I.A., Mezhevich N.M., Khlutkov A.D. Loss of communication – loss of control. on the issue of economic and political results of 2023. Administrative Consulting. 2024;1:46–52. (In Russian). https://doi.org/10.22394/1726-1139-2024-1-46-52

5. Alpatov A.A. Law and economics: issues of correlation. Law Journal of the Higher School of Economics. 2010;4:3–22. (In Russian).

6. Tikhomirov Yu.A., Talapina E.V. Law as an effective factor in economic development. Law Journal of the Higher School of Economics. 2020;1:4–26. (In Russian). https://doi.org/10.17323/2072-8166.2020.1.4.26

7. Sinitsyn S.A. Economics and law: interrelation in modern world. Herald of the Russian Academy of Sciences. 2019;2(89):139–146. (In Russian). https://doi.org/10.31857/S0869-5873892139-146

8. Mankovsky I.A. Institutional matrix as a system-forming basis for socio-economic development. Bulletin of the State University of Education. Series: Economics. 2024;1:6–17. (In Russian). https://doi.org/10.18384/2949-5024-2024-1-6-17

9. Markova-Murashova S.A. The interaction of legal and economic systems of the present. Izvestiya of the Tula State University. Economic and Legal Sciences. 2014;3–2:17–24. (In Russian).

10. Ershov D.N. Legal foundations of sustainable development and modern global challenges. Economics, taxes & law. 2023;4(16):160–168. (In Russian). https://doi.org/10.26794/1999-849X-2023-16-5-160-168

11. Smorodinskaya N.V., Katukov D.D., Malygin V.E. Shumpeterian growth theory in the context of the innovation-led transition of economies. Journal of Institutional Studies. 2019;2(11):60–78. (In Russian). https://doi.org/10.17835/20766297.2019.11.2.060-078

12. Gersonskaya I.V. State regulation of the economy: evolution of concepts and modern priorities in Russia. Izvestiya of the St. Petersburg State University of Economics. 2024;1(145):54–59. (In Russian).

13. Semyakin M.N., Gubareva A.V., Stepkin S.P. Legal regulation of economic processes at the macro level. MGIMO Review of International Relations. 2022;3(15):231–249. (In Russian). https://doi.org/10.24833/2071-8160-2022-3-84-231-249

14. Vasyanina E.L. Issues of forming a modern model of financial and legal regulation in the conditions of structural transformations of the economy. Journal of Russian Law. 2023;7(27):61–74. (In Russian). https://doi.org/10.12737/jrp.2023.079

15. Skvortsova V.A., Skvortsov A.O., Skvortsova A.A. Institutional environment structure: elements of sustainability and opportunities for modification. Scientific Works of the Free Economic Society of Russia. 2023;4(242):248–268. (In Russian). https://doi.org/10.38197/2072-2060-2023-242-4-248-268

16. Gersonskaya I.V. Actual directions of state regulation of the Russian economy system. In: Actual problems of the development of industry markets: national and regional level: Proceedings of the VII International Scientific and Practical Conference, Voronezh, April 6, 2023. Voronezh: Nauchnaya kniga; 2023. Pp. 32–34. (In Russian).

17. Tambovtsev V.L., Rozhdestvenskaya I.A. Efficiency in public sector: illusion of comprehension and its consequences. Terra Economicus. 2021;1(19):17–35. (In Russian). https://doi.org/10.18522/2073-6606-2021-19-1-17-35

18. Bajterуakov S.V., Baryshnikova A.V., Kopytok V.K., Filippova A., Shubina D.O. Personnel policy in the civil service: current problems and necessary changes. Moscow: Accounts Chamber of the Russian Federation, Centre for Advanced Management Solutions; 2021. 118 p. (In Russian).

19. Medzhidov G.S. Improving professionalism of civil servants as an important prerequisite for the development of civil service. Academic journalism. 2023;8–1:158–163. (In Russian).

20. Nazarychev D.V., Sigurova O.Yu. Classification of indicators of anti-corruption monitoring of the regions of the Russian Federation. The Economy under Guard. 2022;3(22):73–80. (In Russian). https://doi.org/10.36511/2588-0071-2022-3-73-80

21. Filipenko T.V. Regional problems of anti-corruption. Ceteris Paribus. 2023;9:83–86. (In Russian).

22. Andrunik A.P. Current issues of personnel security: from the genesis of problems to the telesis of solutions. International Research Journal. 2021;8–2(110):134–136. (In Russian). https://doi.org/10.23670/IRJ.2021.110.8.062

23. Sidorova V.N., Khorosheva N.V. Reforming the economy and law as a necessary condition for the development of competition. Economу and Business: Theory and Practice. 2022;91(9):195–201. (In Russian). https://doi.org/10.24412/24110450-2022-9-195-201