Investigating the Prospects of New Institutional Theory in the Smart Economy

Sozinova, Anastasiya A.

The new institutional theory is a modern trend within the framework of the neoclassical school of economic theory, which arose on the basis of old institutionalism. The article examines one of the four assumptions of the new institutional theory: the efficiency of factor markets. In this assumption, the emphasis is placed on the financial capital market, although in the conditions of building a new economy or «knowledge economy», human capital is the most important factor of production and information capital is also important factor in the context of the growth of the digital economy. A new paradigm of socio-economic development, formed in the context of the disruption of world economic relations in the rapidly developing viral economic cycle, which is caused by the global pandemic of the coronavirus COVID-2019; as well as the growth of the digital economy is having a contradictory impact on the modern global economy. On the one hand, the digital economy removes barriers to the international exchange of goods, forms the potential for optimizing the economic activities of economic systems and opens up opportunities for entering world markets and conducting transnational business. On the other hand, the viral economic cycle has led to some de-globalization of the economy and its de-integration, which limits the sources of growth and development of the world economy, and also creates opportunities for the dominance of some participants in world economic relations over others, which leads to an increase in imbalances in the development of economic systems and inhibits the rate of development of the world economy.