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

Влияние административного регулирования на эффективность предпринимательской деятельности в регионе
Development of the Tools for the Assessment of the Influence of Administrative Regulation on the Business Efficiency in the Region

Author(s): Natalia Zinovyevna Solodilova, Rustam Ilkamovich Malikov, Konstantin Evgenyevich Grishin
Subject(s): Economy, Geography, Regional studies
Published by: Институт экономики Уральского отделения Российской академии наук
Keywords: administrative regulation; business entities; business; administrative costs; informal interaction; administrative pressure; business environment; power structures; means of control and supervision;

Summary/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 ofbusiness environment is proved. This can stimulate the growth of business and investment activity in the Russian regions andmunicipalities. The authors identify two types of government structures influence on the business entities, differentiated by thenature of the targeting impact on the economic activity of business structures — the administrative pressure and administrativeassistance. It is suggested that in practice, high cost implications for compliance with all regulation requirements as well assanctions for the violation of these requirements create preconditions for the development of informal interaction betweenentrepreneurs and the representatives of regulatory bodies. Therefore, businessmen try to minimize the costs associated withthe implementation of formal administrative requirements, rules and regulations by personal arrangements. A mathematicalmodel for the assessment of the informal interaction between business entities and certain officials of control supervisoryauthorities is proposed. It allows to determine the range of benefits for economic entities from avoiding the implementation ofadministrative norms, requirements and rules. It is concluded that unreasonably high level of costs for the implementation offormal administrative requirements rules and regulations by business entities composes the economic basis for the reproductionof informal relations. This determines mutual benefits for a number of entrepreneurs and a part of bureaucracy from variousschemes of informal interaction.

  • Issue Year: 12/2016
  • Issue No: 4
  • Page Range: 1001-1013
  • Page Count: 13
  • Language: Russian