FORMALIZATION OF SELFSELECTION OF GLOBAL ECONOMIC GOVERNANCE MODE

Abstract

Nowadays, global economic governance is on the edge of economic scientific research. The fastening economic globalization with its drawbacks and unprecedent possible gains alongside with toughening competition on markets of sources and finished products, deepening global problems represent a real challenge for decision-makers across the World. Activities of supranational organizations are complemented and sometimes substituted by actions of other global actors which role is constantly increasing and strengthened. Thus, previous forms of global economic governance do not fit the modern system of governance itself well. Various foreign and Ukrainian scientists attempted to assess, analyze and explain global economic governance phenomena and its modes, amon them are: D. Lukjanenko, D. W. Drezner, M. Filipovich, S. Bancic, M. Kahler and D. A. Lake et al. Despite existing literature, there are no researches which are aimed to the development of model which allows formalizing self-selection of GEG mode. The goal of the paper was to develop the formalized model of self-selection of global economic governance mode and to trace out which factors drive the switches between modes. The paper proceeds with the respective analysis of four mostly widespread modes of GEG: supranational, hierarchic, network and hybrid, and the derivation of specific probit function which explains dependence on GEG mode on a specific set of dummy variables. Thus, the paper is the first attempt to formalize the self-selection of modes of global economic governance. Using methods of economic analysis, it suggests the specific functional form of dependence of four specific GEG modes (supranational, hybrid, network, hierarchic) on the set of dependent variables, among them are: leadership in specific sphere, divergence from the generally agreed policy, absence of effective national institutions and etc. The paper could be developed further by elaborating on the set of indicators which could be used to proxy the suggested dependent variables. This will represent the finished methodology of GEG modes self-selection and could be used further for scientific and practical needs, e.g. in forecasting changes of GEG modes.

Keywords

• global economic governance
• mode
• supranational organizations
• integration unions
• networking governance
• globalization