Increasing the efficiency of economic mechanisms – an important factor in reducing the shadow economy

The article examines the theoretical and practical aspects of the economic mechanism's impact on the cost valuation of core production factors and ensuring equivalent intersectoral commodity exchange. Particular attention is paid to the analysis of trends in state regulation of pricing, taxation, and other economic instruments influencing price formation. The aim of the study is to substantiate directions for increasing the efficiency of price regulation, develop measures to ensure conditions for equivalent inter-industry exchange in basic sectors of the national economy, ensure fair cost valuation of production factors, and curb the unjustified increase in costs and prices of natural monopoly entities. Based on the research results, recommendations were formulated aimed at improving the functioning of the economic mechanism under market economy conditions.