Publication Details
Abstract
This article explores the institutional mechanisms for managing the service sector within regional economies, combining both theoretical analysis and practical insights. The study emphasizes the critical role of the service sector in promoting economic growth, generating employment, and reducing poverty, particularly in regions with limited industrial development. It identifies and examines the structural elements of institutional mechanisms, including regulatory, organizational, economic, and innovative components, highlighting their interdependence and significance in effective sector management. The article systematically analyzes the components and stages of an institutional management model, providing a clear framework for understanding how service sector development can be guided and monitored. Drawing on international experiences from countries with advanced service economies, best practices and effective strategies for sector growth are identified and adapted to the context of regional economies. The research underscores the importance of fostering human capital, encouraging entrepreneurship, and ensuring flexible, inclusive employment opportunities as integral aspects of service sector development. Based on these findings, the study proposes scientific and practical recommendations to enhance institutional management mechanisms, optimize resource allocation, and implement innovative approaches that support sustainable growth. Overall, the article contributes to the understanding of how well-structured institutional frameworks can strengthen the service sector and address socio-economic challenges in regional contexts.