Abstract:

Ineffective state regulation triggers downturn of business, reduction in international trade and, consequently, the economic slowdown. The impact of excessive regulation for a firm is slowing its response to external challenges, diversion of resources away from innovations and job creation. It is important to underline the fact that virtually any governmental interference in socio-economic relations may generate some adverse effects for individual entities or the whole society. Sometimes these “side effects” can even conflict with original objectives of regulation.