Macro - and microeconomic criteria for assessing efficiency of legal advisory services

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Macro - and microeconomic criteria for assessing efficiency of legal advisory services

Journal Title: Економічна теорія та право - Year 2018, Vol 3, Issue 34

Abstract

Legal advisory services are an important component and factor of forming and development of the law-based state and economy. Hence, there is a need to research the essence, factors, and indices of socio-economic efficiency of legal advisory services as the business and social institution. Recent research and publication analysis. The legal science analyses issues of efficiency of legal advisory services in the context of performing functions of practical activities in the law field or legal outcomes of law practice. In contrast, the economic science attaches top priority to analysing economic outcomes of the legal services business without taking into account the social role of legal advisory services as the institution of the law-based economy. The author considers the system approach to disclosure of the essence of socio-economic efficiency of legal advisory services, which takes into account its entrepreneurial and social characteristics, to be relevant for this research. Paper objective. The article aim is to disclose the essence and indices of macro- and microeconomic efficiency of the legal services business as components of its socioeconomic efficiency. Paper main body. Drawing on the system approach to defining socio-economic efficiency of legal advisory services, the author proposes to indicate the following components of the essence: – economic efficiency of a legal services business. Depending on the level of analysis, economic efficiency falls into the following categories: a) macroeconomic efficiency – the place and role of legal advisory services in the national economy, service sector, and international economic sector stipulated by a share of the legal advisory business in their economic outcomes; b) microeconomic efficiency stipulated by expenses and revenues of entities of legal services business, their profitability, return from the resource potential, return on capital employed, a share of the legal services market, etc.; b) nanoeconomic efficiency – return from certain resources of legal advisory services, above all, legal advisory staff, efficiency of particular practices and services in the legal field; – socio-economic effects of legal advisory services, which are related to performing its functions as the social institution and characterize its influence on development of the law-based state and economy. Conclusion of the research. The increase of macroeconomic efficiency of the legal services business directly depends on its restructurization, transnationalism, and renovation stipulated by challenges of economic globalization, European integration, and socioeconomic reforms. The indicated opposite dynamics of microeconomic efficiency of leading law firms of Ukraine, which operate in the general economic environment, highlights the importance of strategic and tactic management. Effectiveness of these management strategies affects socio-economic outcomes of the law firms. Short Abstract for the article Abstract. The article substantiates the necessity of the system approach to determination of socio-economic efficiency of legal advisory services as the entrepreneurial activity related to rendering legal services and the institution of the law-based economy. The author has indicated the essence and indices of macro- and microeconomic efficiency of the legal services business. The author has described the influence of transnationalism and restructurization of legal services business in Ukraine on its economic efficiency.

Authors and Affiliations

О. С. МАРЧЕНКО

Keywords

legal advisory services; legal services business; socio-economic efficiency of legal advisory services; macro-; micro-; and nanoeconomic efficiency and socioeconomic effects of legal advisory services; transnationalism and restructurization of legal services business.

EP ID EP438295
DOI 10.31359/2411-5584-2018-34-3-92
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