INSTITUTIONAL AND CONDITIONS OF ADJUSTMENT EXPENSES TRAP ENTERPRISE

Abstract

The article revealed the concept of institution and institutions. Investigated that consideration of the institutional environment involves isolating nature of macroeconomic institutional conditions that influence the development of business regulation costs. Research institutional conditions of business regulation costs indicates their importance and active role of institutions and institutional environment in economic development. Isolation and systematization of institutional conditions of business regulation costs at the macroeconomic level makes it possible to identify the problematic areas of institutional transformation. In the course of our study revealed the fullness of formal and informal relationships between business entities and the state in which was formed a number of so-called «institutional traps» that undermines support priority economic activities, information transparency and legal protection business. Studied that in Ukraine formed a relationship between the presence of traps and institutional sources to benefit from them. We believe that the beneficiaries of the existence of institutional traps are employees of public authorities. After all, they are individual employees maximize its utility, and the other – civil servants – representatives of the people, the original function of which is to maximize the welfare of society. Dedicated institutional conditions and pitfalls of business regulation costs at the level of government proves the need to develop strategies to minimize the cost of the business sector to support priority economic activities, information transarency, legal protection.