Administrative, Institutional and Economic Methods of Stimulating Economic Development: Theoretical Analysis and Practical Aspects

Abstract

In the context of post-industrial transformation, the problem of systematization of methods of state stimulation of economic development is being actualized. The article justifies that stimulation is a system that includes economic and administrative-institutional methods, which in modern conditions lose their rigid separation and enter into complementarity relations. The content of economic methods (tax incentives, concessional lending, subsidies), as well as administrative and institutional methods (formation of an institutional environment, regulation of property rights, reduction of administrative barriers, support for competition) is disclosed. Particular attention is paid to hybrid incentive methods – special economic zones, concession agreements, cluster policies, public-private partnerships, which combine the potential of both approaches. Based on empirical analysis of foreign and domestic experience, it was shown that a three-level model of methods (economic, administrative-institutional and hybrid) creates prerequisites for synergies, but its effectiveness critically depends on the quality of institutional administration. The findings clarify theoretical ideas about the evolution of methods of stimulating economic development and can be used to improve state economic policy.