ANALYSIS OF STOCK MARKET DEVELOPMENT IN THE CONTEXT OF INSTITUTIONAL CHANGES

Анотація

The basic institutional structure should shape the conditions for economic growth. The incentive structure should help to reduce the costs of economic transactions by guaranteeing property rights. Therefore, the restructuring of the institutional structure is aimed at changing the direction of incentives for economic agents. The costs associated with rapid economic growth are determined by the adaptive efficiency of institutions, and the speed of change in the institutional structure depends on the extent to which the feedback from the application of existing norms was accurate and therefore formed the correct models of the environment for economic agents. "The direction of change is determined by the development trajectory (path dependence). The political and economic organisations that have emerged as a result of the institutional matrix tend to preserve the institutional structure. The aforementioned complementarities, economies of scale, and network externalities "tilt" changes towards the interests of existing organisations. The basic institutional structure consists of formal rules and informal norms. Institutional changes that reduce the costs of economic and political transactions build a new political and economic structure and ensure economic growth and integration into a higher-level economic system. This is the focus of the institutional change process. The "price" of rapid economic growth is partly due to the adaptive efficiency of institutions. The institutional structure can be a cause of inefficient economic functioning. To improve its efficiency, it is necessary to change the institutional structure in such a way that it changes the direction of incentives.