Home  Journals  Economic Analysis: Theory and Practice  26(425) - 2015 July

The problem of effective cooperation of the public and private sectors of the national economy

Vol. 14, Iss. 26, JULY 2015

Article PDF Version

Received: 8 April 2015

Accepted: 12 May 2015

Available online: 21 July 2015

Subject Heading: ECONOMIC ADVANCEMENT

JEL Classification: 

Pages: 13-23

Importance Recently, the problem of searching for the optimal combination of public and private forms of ownership and their effective interaction has become particularly relevant due to low efficiency of the Russian private sector.
     Objectives The purpose of the study is to reveal the reasons of low efficiency of the Russian private sector and define priorities in addressing this issue. The objectives include the review of theoretical approaches to the problem of effective interaction of the public and private sector in the national economy, analysis of changes in the balance of public and private sectors in the Russian economy, and developing priorities for solving the problem.
     Methods The article reviews the main approaches in the economic theory to the substantiation of functions and size of the public and private sectors. Based on the statistical data, we perform a retrospective analysis of changes in the balance of public and private sectors in the Russian economy during the reforms.
     Results We have identified major implications and results of privatization in Russia, the impact of changes in the balance of public and private sector of the Russian economy on the economic structure efficiency.
     Conclusions We conclude that the problem of effective interaction of the public and private sectors in the Russian economy should be addressed through the modernization process. The State should act as a basis for determining the main areas directions of the modernization. Increasing the share of the public sector in the Russian economy should become the overriding priority, primarily to meet the challenges of changing economic structure and enhancing innovation.

Keywords: effective interaction, public, private, sector, economic structure, modernization

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