Abstract:
In this paper, to justify the essence of the concept of «institutional mechanism» using theoretical analysis of the evolution of economic mechanism, the approaches to its definition are determined and the development of its concept in economic theory is presented. Based on the analysis of the different interpretations, the authors’ definition of the institutional mechanism is determined as the workflow of economic agents to ensure their effective cooperation through the implementation of formal and informal norms to achieve economic results. In addition, the paper shows the location of the concept «institutional mechanism» in the set of other terms of the modern economic theory.
