IDEAS home Printed from https://ideas.repec.org/a/ura/ecregj/v1y2016i4p1001-1013.html
   My bibliography  Save this article

Development of the Tools for the Assessment of the Influence of Administrative Regulation on the Business Efficiency in the Region

Author

Listed:
  • Natalya Solodilova
  • Rustam Malikov

    (Ufa State University of Economics and Service)

  • Konstantin Grishin

    (Ufa State University of Economics and Service)

Abstract

The article discusses the theoretical issues of the formation of the administrative regulation mechanisms for business entities. The necessity of the further development of theoretical and methodological base and the application toolkit for the design of business environment is proved. This can stimulate the growth of business and investment activity in the Russian regions and municipalities. The authors identify two types of government structures influence on the business entities, differentiated by the nature of the targeting impact on the economic activity of business structures — the administrative pressure and administrative assistance. It is suggested that in practice, high cost implications for compliance with all regulation requirements as well as sanctions for the violation of these requirements create preconditions for the development of informal interaction between entrepreneurs and the representatives of regulatory bodies. Therefore, businessmen try to minimize the costs associated with the implementation of formal administrative requirements, rules and regulations by personal arrangements. A mathematical model for the assessment of the informal interaction between business entities and certain officials of control supervisory authorities is proposed. It allows to determine the range of benefits for economic entities from avoiding the implementation of administrative norms, requirements and rules. It is concluded that unreasonably high level of costs for the implementation of formal administrative requirements rules and regulations by business entities composes the economic basis for the reproduction of informal relations. This determines mutual benefits for a number of entrepreneurs and a part of bureaucracy from various schemes of informal interaction.

Suggested Citation

  • Natalya Solodilova & Rustam Malikov & Konstantin Grishin, 2016. "Development of the Tools for the Assessment of the Influence of Administrative Regulation on the Business Efficiency in the Region," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(4), pages 1001-1013.
    • Handle: RePEc:ura:ecregj:v:1:y:2016:i:4:p:1001-1013
    as

    Download full text from publisher

    File URL: http://economyofregion.ru/Data/Issues/ER2016/December_2016/ERDecember2016_1001_1013.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Natalya Solodilova & Rustam Malikov & Konstantin Grishin, 2014. "Generation Favorable Institutional Configuration Regional Business Environment," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(4), pages 271-282.
    2. Oliver E. Williamson, 2000. "The New Institutional Economics: Taking Stock, Looking Ahead," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 595-613, September.
    3. Frye, Timothy & Shleifer, Andrei, 1997. "The Invisible Hand and the Grabbing Hand," American Economic Review, American Economic Association, vol. 87(2), pages 354-358, May.
    4. Baumol, William J, 1986. "Productivity Growth, Convergence, and Welfare: What the Long-run Data Show," American Economic Review, American Economic Association, vol. 76(5), pages 1072-1085, December.
    5. North, Douglass C., 1971. "Institutional Change and Economic Growth," The Journal of Economic History, Cambridge University Press, vol. 31(1), pages 118-125, March.
    6. D. Frolov., 2016. "Methodological institutionalism 2.0: From institutions to institutional configurations," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 7.
    7. Weingast, Barry R, 1995. "The Economic Role of Political Institutions: Market-Preserving Federalism and Economic Development," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 11(1), pages 1-31, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Solodilova, N. Z. & Malikov, R. I. & Grishin, K. E., 2016. "Influence of Administrative Regulation on the Efficiency of Business Activities in the Region," R-Economy, Ural Federal University, Graduate School of Economics and Management, vol. 2(4), pages 480-489.
    2. Natalya Solodilova & Rustam Malikov & Konstantin Grishin, 2017. "Regional Entrepreneurship System: Development Parameters and Potential of Reconfiguration," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(4), pages 1107-1122.
    3. Eirik G. Furubotn & Rudolf Richter, 2008. "The New Institutional Economics – A Different Approach To Economic Analysis," Economic Affairs, Wiley Blackwell, vol. 28(3), pages 15-23, September.
    4. Yochanan Shachmurove, 2012. "Failing Institutions Are at the Core of the U.S. Financial Crisis," PIER Working Paper Archive 12-040, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    5. Arena, Matteo P. & Ferris, Stephen P., 2018. "A global analysis of corporate litigation risk and costs," International Review of Law and Economics, Elsevier, vol. 56(C), pages 28-41.
    6. Boudreaux, Christopher, 2019. "Do private enterprises outperform state enterprises in an emerging market? The importance of institutional context in entrepreneurship," MPRA Paper 93039, University Library of Munich, Germany.
    7. Troilo, Michael & Walkup, Brian R. & Abe, Masato & Lee, Seulki, 2019. "Legal systems and the financing of working capital," International Review of Economics & Finance, Elsevier, vol. 64(C), pages 641-656.
    8. Ashok Chakravarti, 2012. "Institutions, Economic Performance and the Visible Hand," Books, Edward Elgar Publishing, number 14751.
    9. Sonin, Konstantin, 2010. "Provincial protectionism," Journal of Comparative Economics, Elsevier, vol. 38(2), pages 111-122, June.
    10. Ménard, Claude & Kurdin, Alexander & Shastitko, Andrey, 2020. "Out by the door, in through the window: Politics and natural gas regulation in Russia," Utilities Policy, Elsevier, vol. 64(C).
    11. Stephen L. Vargo & Robert F. Lusch, 2016. "Institutions and axioms: an extension and update of service-dominant logic," Journal of the Academy of Marketing Science, Springer, vol. 44(1), pages 5-23, January.
    12. Chen, Xiaodong & Mi, Haoming & Zhou, Peng, 2023. "Whether to decentralize and how to decentralize? The optimal fiscal federalism in an endogenous growth model," Cardiff Economics Working Papers E2023/11, Cardiff University, Cardiff Business School, Economics Section.
    13. Oskam, A.J. & Komen, M.H.C. & Wobst, P. & Yalew, A., 2004. "Trade policies and development of less-favoured areas: evidence from the literature," Food Policy, Elsevier, vol. 29(4), pages 445-466, August.
    14. Sebastian Kessing & Kai Konrad & Christos Kotsogiannis, 2009. "Federalism, weak institutions and the competition for foreign direct investment," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 16(1), pages 105-123, February.
    15. Audretsch, David B. & Belitski, Maksim & Caiazza, Rosa & Desai, Sameeksha, 2022. "The role of institutions in latent and emergent entrepreneurship," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    16. Paul Dragos Aligica & Vlad Tarko, 2014. "Institutional Resilience and Economic Systems: Lessons from Elinor Ostrom’s Work," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 56(1), pages 52-76, March.
    17. Trent J. MacDonald, 2019. "The Political Economy of Non-Territorial Exit," Books, Edward Elgar Publishing, number 18871.
    18. Boettke, Peter J. & Coyne, Christopher J., 2009. "Context Matters: Institutions and Entrepreneurship," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 5(3), pages 135-209, March.
    19. Menyashev, Rinat & Natkhov, Timur & Polishchuk, Leonid & Syunyaev, Georgiy, 2011. "New Institutional Economics: A state-of-the-art review for economic sociologists," economic sociology. perspectives and conversations, Max Planck Institute for the Study of Societies, vol. 13(1), pages 12-21.
    20. John Dove, 2012. "Credible commitments and constitutional constraints: state debt repudiation and default in nineteenth century America," Constitutional Political Economy, Springer, vol. 23(1), pages 66-93, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ura:ecregj:v:1:y:2016:i:4:p:1001-1013. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alexey Naydenov (email available below). General contact details of provider: http://www.economyofregion.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.