DECENTRALIZATION OF REGIONAL ADMINISTRATION, IMPROVEMENT OF ECONOMIC MECHANISMS FOR ITS REGULATION

This paper explores the impact of decentralization of regional administration on economic regulation and development, using a comparative econometric approach. The primary objective is to examine how the devolution of administrative and fiscal authority affects regional economic performance, governance efficiency, and investment attraction. The study utilizes data from multiple regions between 2010 and 2023, analyzing variables such as regional budget autonomy, public service delivery efficiency, private investment rates, and employment levels. A panel data regression model is applied to evaluate the relationship between decentralization and regional economic outcomes. The results indicate that regions with higher degrees of administrative and fiscal autonomy exhibit improved governance and economic indicators. Based on the findings, the paper offers policy recommendations for strengthening economic regulation mechanisms in decentralized contexts.