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Cultural impact on the ratio of public and market coordination in Ukraine

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Category: Economy and management

Last Updated on 24 July 2014

Published on 10 July 2013

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Authors:

G.M. Pilipenko, Dr. Sci. (Econ.), Associate Professor, State Higher Educational Institution “National Mining University”, Professor of the Department of Economic Theory and Fundamentals of Entrepreneurship, Dnepropetrovsk, Ukraine

Abstract:

Purpose. To substantiate the relationship between the quality characteristics of the institutions of coordination and social and cultural values of society. To establish specific models of correlation of coordination institutions existing in Ukraine.

Methodology. The study is based on an interdisciplinary approach including scientific principles of sociology, psychobiology, and social and analytical psychology on the base of institutional theory. It defines the relationship between the inner impulses of a person to the economic activity and the results of its realization. Specific methodological tools of the method includes: comparative analysis (to compare the values of the population of Ukraine with other European countries); ethnometrics (for quantitative measurement of social and cultural values); standard techniques of sociological research (for survey of the Ukrainian population); statistical techniques (for processing of the survey results and establishing the relationship between coordination institutes and mindset performance).

Findings. The existence of the relationship between the government and market coordination institutions on the one hand, and the basic values of a particular country, on the other hand has been proved. We have determined that in countries with low power distance and high individualism the market coordination is more common than the government coordination, and vice versa.

Originality. Based on the research of Ukrainian mentality, using techniques of H. Hofstede VSM-08, Sh. Schwartz, and A. Potemkina, and the author’s own approach, the indicators of basic values and uniqueness of the Ukrainian model of correlation of the coordination institutions has been determined. The model reflects the existence of preferred orientation of the population on both the market and the government coordination in equal measure followed by in the negative attitude to the State authority and its consideration as a means of selfish interest satisfaction.

Practical value. The results can be used to develop recommendations that can help to accelerate the process of reforming of the institutional environment in Ukraine.

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