Influence of Institutes on Economical Growth and Effectiveness of Building Organizations Cover Image

Влияние институтов на экономический рост и эффективность строительных организаций
Influence of Institutes on Economical Growth and Effectiveness of Building Organizations

Author(s): Marina Yudenko, Evgeniy Yudenko
Subject(s): Economy
Published by: Икономически университет - Варна
Keywords: Deregulation; Efficiency Entrepreneurship; Сonstruction; Organizations; Institutions
Summary/Abstract: The article defines role of institutes in entrepreneurship. It has been revealed that ineffective institutes lead to an increase in transaction costs, create administrative barriers and deregulate business activities of entrepreneurs. It is offered to take a methodological principle of complementarity into account when designing institutes. That will allow us to consider each particular institute as interoperation, interdependence and interconditionality of its components – of formal and informal standards. The results of the research say that transaction costs form considerable part of all expenses of entrepreneurs. The calculations show that an income from transaction costs avoidance may considerably increase effectiveness of building organizations and their economical growth. In 2015 an income that could have been obtained by entrepreneurs from transaction costs avoidance and from overcoming administrative barriers would let the building business become a profitable type of economical activity.

  • Page Range: 25-36
  • Page Count: 12
  • Publication Year: 2017
  • Language: Russian