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ARTÍCULO
TITULO

COMPLEMENTARITY BETWEEN THE MARKET AND THE STATE AS A FACTOR OF MODERN MARKET ECONOMY EFFICACY: LESSONS FOR REPUBLIC OF SERBIA

Vlastimir Radomir Lekovic    

Resumen

Abstract: Market economy is explained as a system characterized by private ownership and self-regulating market mechanism which enables the coordination of the activities of the economic actors. A thesis that only private entrepreneurship ensures economic prosperity is developed based on this concept, given that economic growth is directly determined by the degree of freedom of economic agents. With no intention to challenge the role of the market mechanism, private entrepreneurship and economic freedom, the author, rather, aims to bring to attention the existence of objective factors which in terms of the functioning of modern market economies introduce the need to establish cohesion between the market and the state, as well as the relevant coordination and control mechanisms. This view is based on the experience of the most developed market economies which have achieved their development goals largely owing to an appropriate symbiosis and complementarity of the market and the state. Accordingly, the aim of the research is to, based on different theoretical concepts and economic reality of modern market economies, underline the necessity that the Republic of Serbia should face the reality regarding the creation of its economic system that both the market and the state would be more successful once the complementarity is established. Keywords: market, state, coordination of economic activities, economic performance, complementarity between the market and the state

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