Assessing the impact of the current incentive structure for economic development

The article, based on a positive methodology, is assessing the impact of the current structure of the key incentives at the level of economic development of the country. From the perspective of new institutional economics and psychological theory of self-determination, the economic behavior of the individual is regulated incentives that differ in the level of internalization. Theoretically, the higher the share of the most internalized incentives, the higher should be the level of economic development in the country as internalization leads to a saving of agency costs and generates the most effective motivation of economic agents. The paper proposes a method of empirical verification of the theoretical position.