The import of economic institutions for Ukraine

Abstract

Abstract: The article analyzes the process of importing Western economic institutions into Ukraine, particularly in the areas of financial regulation, corporate governance, the legal system, and the promotion of entrepreneurship. The adaptation of these institutions to the Ukrainian context is a complex and multifaceted process that brings both benefits and risks. The purpose of the study is to identify the specific features of importing Western economic institutions into Ukraine, to analyze the economic risks associated with this process, and to develop practical recommendations for their effective adaptation. The research reveals the theoretical foundations of institutional import within the framework of neo-institutionalism; classifies economic institutions and the mechanisms of their import; examines the current state of imported institutions in Ukraine; identifies key economic risks associated with institutional transfer; and proposes ways to adapt institutions to the Ukrainian economic environment. The authors apply approaches of comparative institutionalism, which make it possible to compare models of institutional development in different countries and take into account cultural and historical differences. The effectiveness of such economies is significantly lower than that of a developed market system or even a centrally managed one. If a state in a transitional economy excessively regulates economic relations emerging in the markets, this negatively affects the pace and quality of the formation of corresponding market institutions. A paradox arises: state intervention occurs because market mechanisms are dysfunctional, yet market mechanisms cannot function effectively due to the absence of the necessary institutional structure. From the above, it can be concluded that not all public policy measures adopted in developed countries can be applied in a transitional economy. Public policy in a transitional economy should be aimed primarily at creating conditions for the development of institutions and, consequently, an effective institutional structure. Keywords: transplantation of Western economic institutions, neo-institutionalism, mechanisms of institutional import, key economic risks, institutional transfer, informal institutions, ineffective crisis institutionalization, synergy, property institution.