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Three-dimensional model of the institutional matrix as a methodological tool for designing institutional changes

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  • Ivanovych Dzvinchuk, Dmytro
  • Pavlovych Petrenko, Victor
  • Stepanivna Orliv, Mariana
  • Volodymyrovych Molodtsov, Oleksandr

Abstract

The article offers a three-dimensional model of the institutional matrix that can be used as a methodological tool for designing institutional changes in transitional societies to develop their socio-economic systems. The empirical basis of the analysis is the results of the GLOBE research program that has defined value and practice scores of the main cultural dimensions in 62 countries which affect the formation and development of institutions. In contrast to the concept of alternative dominant “Eastern” (redistributive) and “Western” (market) matrices, as it is currently known, it is offered to interpret basic economic, ideological and political institutions of society in the form of alternative vectors. They create a spatial mega-matrix which consists of two dominant and six complementary matrices. Complementary matrices which are presented in the article are interesting for determining variants of the development of existing socio-economic systems, which could not be described using the elements of traditional matrices. It is demonstrated that real institutional matrices of modern mixed socio-economic systems are formed in the mega-matrix space with the participation of all its components. The possibilities and conditions for using the offered model in implementing institutional changes and in the development of socio-economic systems are revealed.

Suggested Citation

  • Ivanovych Dzvinchuk, Dmytro & Pavlovych Petrenko, Victor & Stepanivna Orliv, Mariana & Volodymyrovych Molodtsov, Oleksandr, 2020. "Three-dimensional model of the institutional matrix as a methodological tool for designing institutional changes," Revista Galega de Economía, University of Santiago de Compostela. Faculty of Economics and Business., vol. 29(1), pages 1-15.
    • Handle: RePEc:sdo:regaec:v:29:y:2020:i:1_4
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