Strategic Regulatory Reforms for National Economic Security: A Comparative Analysis of Transitional Stability

Article DOI: https://doi.org/10.57017/jaes.v21.3(93).01

Author(s):

Hennadii MAZUR Department of Management and Administration, РHEE “Vinnytsia Аcademy of Сontinuing Еducation”, Vinnytsia, Ukraine
Alla DAKAL Department of Public Management and Administration Interregional Academy of Personnel Management, Kyiv, Ukraine
Nataliia KRASNOSTANOVA Department of Management, Finance and Business Technologies Odessа Polytechnic National University, Ukraine
Svitlana KOLACH Department of Economic, Stepan Gzhytskyi National University of Veterinary Medicine and Biotechnologies, Lviv, Ukraine
Rovshan GULIYEV HAJI OGLU Department of Technology, Organization and Management in Construction Azerbaijan University of Architecture and Construction, Baku, Azerbaijan

Abstract:

In the context of increasing geopolitical uncertainty, transitional economies face the challenge of implementing regulatory reforms while maintaining national economic security. This study examines the impact of government regulatory mechanisms on security outcomes, with a focus on institutional quality and macroeconomic stability.

Using a cross-sectional econometric framework based on 25 European countries (2024), the analysis applies OLS and alternative specifications, including interaction, nonlinear, and threshold models. The findings indicate that institutional quality, proxied by the Index of Economic Freedom, is the most significant determinant of national security, exhibiting a strong negative relationship with the Global Peace Index (GPI). Military expenditure shows a nonlinear effect, with a threshold of approximately 2.5% of GDP beyond which its impact becomes destabilizing. Additionally, inflation shocks exceeding 5% significantly deteriorate security outcomes.

The results highlight that national economic security is primarily driven by institutional efficiency and macroeconomic stability, supporting an “active stabilization” approach to economic governance.

Copyright© 2026 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.

Article’s History: Received 25th of February, 2026; Revised 19th of March, 2026; Accepted 12th of April, 2026; Available online: 30th of June, 2026. Published as research article in the Volume XXI, Summer, Issue 3(93), 2026.

How to cite:

Mazur, H., Dakal, A., Krasnostanova, N., Kolach, S., & Guliyev Haji Oglu, R. (2026). Strategic Regulatory Reforms for National Economic Security: A Comparative Analysis of Transitional Stability. Journal of Applied Economic Sciences, Volume XXI, Summer, 3(93), 683 – 697. https://doi.org/10.57017/jaes.v21.3(93).01

Conflict of Interest Statement: The authors declare that the research was conducted in the absence of any commercial or financial relationships that could be construed as a potential conflict of interest.

Acknowledgments: N/A.

Data Availability Statement: The data that support the findings of this study are available from the corresponding author upon reasonable request.

Ethical Approval Statement: This study relies exclusively on secondary data from publicly available and reputable international databases (World Bank, OECD, Institute for Economics & Peace, Heritage Foundation). No human participants, personal data, or sensitive information were involved. Consequently, ethical approval was not required, in accordance with standard research ethics guidelines and institutional policies.

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