Bagmet K. State regulation of institutional changes at the social sector of the national economy

Українська версія

Thesis for the degree of Doctor of Science (DSc)

State registration number


Applicant for


  • 08.00.03 - Економіка та управління національним господарством


Specialized Academic Board

Д 55.051.06

Sumy State University


The dissertation is devoted to the development of theoretical and methodological foundations of state economic policy to ensure institutional transformations in the social sector in the context of harmonization of economic growth and social progress. The dissertation proposes the definition of the social sector of the national economy as an object of state regulation by institutional structure and functional structure, the results of the analysis allowed to highlight the general trends of economies development of different countries, which testify to the changing economic role of the social sector. The theses substantiates the essence of the institutional quality of the social sector of the national economy as a complex characteristic of its ability to provide social public services of the quality that meets the state social guarantees (standards), the ability of social sector institutions to adequately respond to the vectors of socio-economic development changing, harmonization with an existing institutional structure, the ability to rapidly transform this structure without loss of dynamic stability. The methodology for identification of the determinants of state regulation of the social services delivery system coming from the assessment of socio-economic returns is proposed, based on the definition of an integral index that aggregates indicators of social outcomes of education, health and social protection systems. According to the results of the analysis of economic convergence and convergence of social sector quality of some European countries of the Eastern Partnership and the existence of divergence between social and economic trajectories of development of these countries is defined. It is proposed in the theses to determine the relative level of loss of development potential of the social sector of the national economy, which causes the under-utilization of human capital and is expressed in the lack of GDP. The integral nature of this indicator made it possible to consider the economic, institutional and social determinants of social sector development. Panel data on the impact of institutional quality (public administration effectiveness) on the development of the social sector is analysed, which revealed that the quality of government regulation (government effectiveness) has a direct significant impact on the development of the social sector. The role of social capital is explored. In the trialist essence, social capital in-tegrates functions (transformational, informational, motivating and supporting) and acts as a driver of inclusive economic growth. It transforms institutional im-pulses into a resource (an additional factor of productivity), which in a particular institutional and economic environment ensures the growth of economic results of the functioning of the national economy. An empirical analysis of the relations between economic growth and the dynamics of social capital development has identified a link between changes in social capital components and indicators of economic inequality. The results also revealed a direct link between economic and non-economic inequality, in particular – gender. The negative value of the corre-lation between social capital and the poverty rate indicates the losses of social capital due to the increase in the share of the poor. There is also a direct link be-tween the effectiveness of government regulation and all components of social capital, which confirms the impact of institutional determinants of development on social capital. The theses elaborates the conceptual bases for designing of the strategy of state regulation of institutional changes at the social sector of the national economy, which envisages the creation of an institutional and economic environment where economic growth is achieved simultaneously with achieving social goals by defined targets through the development of market-coherent and socially-coherent interactions. The strategic direction of state regulation of the institutional changes of the social sector does not define the gradual shift from the institutions of income redistribution to the institutions of complicity. Based on the evaluation of the effectiveness of the state regulation of the social sector of national economy and the proposed methodology, it is defined that the most priority for Ukraine is the development of social infrastructure and the development of social protection mechanisms at the labour market. The use of financial resources has demonstrated the need for a significant improvement in the health financing system. Key words: national economy, state regulation, inclusive economic growth, social sector, institutional changes, institutional quality, social capital.


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