Influence of methods of state regulation on the efficiency of market mechanisms of development of the agrarian sector of the country’s economy
Journal Title: Публічне управління та митне адміністрування - Year 2017, Vol 2, Issue
Abstract
The article deals with the influence of administrative and economic methods of state regulation on the efficiency of the agrarian sector development of the economy. On the basis of the analysis of domestic and foreign experience, it has been determined that excessively intensive use of economic management methods weakens the efficiency of market mechanisms and can cause the economy no less harm than admiration by administrative methods. The purpose of the article is to study the mechanisms of state regulation of the development of the agrarian sector of the economy based on the accumulated theoretical knowledge, taking into account practical foreign and domestic experience. The study of the influence of administrative and economic methods of state regulation of the agrarian sector of the economy makes it possible to conclude that excessively intensive use of economic methods of management weakens the efficiency of market mechanisms and can cause the economy no less damage than seizure of administrative methods. Thus, the desire to reduce the state budget deficit by increasing taxes has a disincentive effect on agrarian enterprises and individual workers, which can make it difficult to overcome the recession in the transition economy. On the other hand, a significant expansion of the system of tax privileges and preferences for these enterprises distorts the system of national economic proportions, adequate to the laws of the market, and can cause serious structural imbalances. In addition, it has been determined that in order to engage any indirect regulator, a preliminary administrative decision of the relevant government bodies, such as a decision on changes in tax rates, the granting of tax benefits or the sale by the central bank of government bonds, is required
Authors and Affiliations
В. В. Черкаска
Keywords
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