Oleksandra Karintseva, PhD in Economics, Associate Professor, Department of Economics, Entrepreneurship and Business Administration, Sumy State University, Ukraine
Raminta Benetyte, PhD Student in Economics, Kaunas University of Technology, Lithuania
This article has improved the approach for assessing the level of effectiveness of state regulation in the process of economic restructuring, considering its environmental factor. The proposed approach is based on the adaptation of the Kubin and Stern models by constructing a nonlinear econometric model of the dependence of expenditures logarithm on the implementation of reforms (considering the environmental factor) from the integral indicators: Dynamic shifts, Inclusiveness, Sustainable Development, Adjustment and Worldwide Governance Indicator (WGI). The WGI Kaufman and Krau Index is calculated on the basis of the application of the UCM approach as a general characteristic of the following components: publicity and accountability; political stability and lack of pressure, the effectiveness of the government; quality of regulation, the rule of law, control over corruption. The parameters formalization of the econometric model was carried out in applying parametric methods by preliminary normalization of the input parameters of the Harrington method. A qualitative interpretation of findings of the level of efficiency in state regulation in the process of economic restructuring, considering its environmental factor, is made by building a correlation matrix.
Keywords: effectiveness, state regulation, economic restructuring, environmental factor.
JEL Classification: E24.
Cite as: Karintseva, O., Benetyte, R. (2018). Estimation of Efficiency of State Regulation in Economic Restructuring Based on the Environmental Factor. SocioEconomic Challenges, 2(1), 91-102. DOI: 10.21272/sec.2(1).91-102.2018
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