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Specifics of regulatory barriers to the market environment at the mesoeconomic level: Evidence from the Mari El Republic

Vol. 14, Iss. 11, NOVEMBER 2018

Received: 11 July 2018

Received in revised form: 31 August 2018

Accepted: 19 September 2018

Available online: 16 November 2018


JEL Classification: A11, O10, O18, R10, R11

Pages: 2022–2035

Chernykh V.V. Volga State University of Technology (VSUT), Yoshkar-Ola, Mari El Republic, Russian Federation

Subject The article examines the market environment at the mesoeconomic level and constrains, such as administrative barriers generating positive and negative effects.
Objectives The research reveals contradictions of theories of administrative barriers, unveils their economic and institutional nature. I analyze the regulatory barrier mechanism in terms of the Nature – Consequence – Result model and specify the classification of administrative barriers. The article also focuses on the effect administrative barriers have on the market environment, illustrating the mesoeconomic level of the Mari El Republic.
Methods The research is based on the comparative analysis of scientific arguments, analysis of statistical data, data aggregation, and general research methods, such as analysis, synthesis, induction, deduction, structural and logic modeling.
Results I classified administrative barriers, ascertained the possibility to regulate them and monitored financial results of unprofitable entities in the mesoeconomic markets of the Mari El Republic by urban districts and municipalities, from perspectives of salaries payable at the mesoeconomic level within the period from 2004 to 2016. The article also analyzes trends in the average pay in various economic sectors of the Mari El Republic.
Conclusions The positive effect of regulatory barriers is generated from a growth in profit, new enterprises, better conditions for business cooperation, higher budgetary revenue and better living standards. The negative effect of regulatory barriers worsen the business environment, lower profit and corporate bankruptcy. Under such circumstances, the economy sees lower budgetary revenue, higher salaries payable, poorer living standards. Regulatory barriers in the market environment should pursue positive effects and lowering of negative consequences.

Keywords: market, market environment, regulatory barrier, mesoeconomic level


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