Subject The article considers externalities, which are also called external effects and market failures. The emergence of market failures combines opportunities and threats, implying a crisis situation caused by external influence. Specific instruments to impact the market environment, so called administrative barriers, are considered as the prime cause of externalities. The barriers lead the market to positive or negative result, i.e. to development or stagnation. Objectives The study aims to analyze externalities and administrative barriers concepts from the standpoint of Russian and foreign scientists, to study the impact of externalities that resulted from the barrier regulation, on the market environment. Methods I employed a system analysis, technical and economic analysis of statistical factors. The data from the Federal State Statistics Service on the Marie El Republic serve as database of the research. Results The study demonstrates the existence of externalities in the market environment, proves the market failures stemming from the barrier regulation, and the presence of positive and negative external effects. Boosting the positive effects enables to achieve stable economic development and increased social and economic indicators of living standards. Conclusions The findings may serve to reveal externalities and their impact on the market environment through continuous monitoring.
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