In transitional constitutional democracies the problem of the effectiveness of legal regulation of economic institutions is due to the transformation processes in the political, economic, social and cultural spheres. The interaction of political and economic factors in the functioning of economic institutions is particularly acute, as it is a methodological problem for the implementation of reforms. The article considers this issue through the prism of the rule of law, good governance and the principles of proportionality of interference in economic freedoms in order to ensure economic wellbeing. This rather abstract formulation of the question needs its analysis through the prism of the transformation of the modern economic system and rethinking the functions of the state. The purpose of the article is to determine the main parameters of the effectiveness of legal regulation of economic institutions.

It is proved that the system of guarantees of economic freedoms is based on constitutional values, which express consensus on the target settings of the participants of economic relations, their goal-setting. The key factors in this process are the transformation of globalization and regional economic cooperation between states which changes their functions. The convergence of the state and the private sector is expressed in the digitilization of the economy and the growing role of artificial intelligence in economic processes, which increasingly affects the content of rules and procedures in the market. As the structure of professions and employment changes under such conditions, it leads to the expansion of the sphere of intellectual activity of mankind.

 A key factor in the transformation of Ukrainian constitutionalism is the abandonment of postcolonial practices of governance as a hierarchy. They are replaced by relations of heteroarchy, which combine subordination and horizontal connections in the economic system. The order of recognition of rules through a combination of private law and public mechanism of law creation is on the agenda. Similarly, the success of economic reforms is due to the existence of independent institutions which is difficult to imagine without a political and legal component. Such instruments include judicial constitutional review, impartial and independent public governance, in particular in the activities of independent state agencies, which are equidistant from political institutions and business circles. Economic structures should be involved in preserving the environment, deploying the structure of health care and providing affordable and high-quality administrative services to the population.

Therefore, values and guidelines for competitiveness, good business practices in the market are provided through the tools of economic constitutionalism, regulatory state and democratic accountability. The means of ensuring this are the rule of law, independent state regulators and the requirements of transparency and due process.

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