FUNCTIONAL-ROLE MATRIX OF THE STATE IN THE DIGITAL ECONOMY: INSTRUMENTS, MECHANISMS AND REGULATORY EFFECTS

Authors

  • Olha Korotun Author

DOI:

https://doi.org/10.60022/3(5)-12S

Keywords:

digital economy, state regulation, state functions, policy instruments, regulatory mechanisms, regulatory effects, digitalization

Abstract

The article substantiates the theoretical and methodological foundations of state regulation of the digitalization of the national economy through the transformation of the state’s role as a key regulatory actor. It is argued that in the digital economy the state evolves from a traditional rule-setting regulator into a multifunctional system combining regulatory, stimulating, coordination, institutional and innovation functions. Based on a functional approach, the study systematizes the instruments of state influence and the mechanisms of their implementation, enabling the identification of a logical relationship between state functions and regulatory outcomes. An original functional-role matrix of the state in the digital economy is developed according to the principle “function → instrument → mechanism → result”, which integrates multi-level elements of public policy into a unified analytical framework and ensures their logical consistency. The research proves that the results of state regulation should be classified into economic, institutional and social effects that jointly determine the overall outcome of digital transformation. Key challenges in the implementation of state functions are identified, including limited adaptability of legal frameworks, complexity of institutional coordination and insufficient development of tools for evaluating policy effectiveness. It is demonstrated that improving the effectiveness of state regulation in the digital economy requires coherence between functions, instruments and mechanisms within a systemic model of governance. The proposed approach also creates a  basis for further empirical testing and refinement of regulatory tools. This approach provides a methodological basis for analyzing and evaluating the impact of public policy on digital transformation processes.

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Published

2026-05-15

How to Cite

Korotun, O. (2026). FUNCTIONAL-ROLE MATRIX OF THE STATE IN THE DIGITAL ECONOMY: INSTRUMENTS, MECHANISMS AND REGULATORY EFFECTS. Current Problems of Sustainable Development, 3(5), 99-109. https://doi.org/10.60022/3(5)-12S