INSTITUTIONAL ENVIRONMENT AND INSTITUTIONS OF THE FUNCTIONING OF THE AGRARIAN SECTOR OF UKRAINE IN THE CONDITIONS OF TRANSFORMATION PROCESSES
Journal Title: Інноваційна економіка - Year 2017, Vol 70, Issue 7
Abstract
Purpose. Theoretical and methodological consideration of the peculiarities of the institutional environment and the institutions of the functioning of the agricultural sector of Ukraine in the conditions of transformation processes. Methodology of research. The theoretical and methodological basis of the article is the fundamental provisions of modern economic science, the work of domestic and foreign scientists. The following methods are used in the process of research: analysis and synthesis – to study the object and subject of research; abstract and logical – for theoretical generalizations of research results and formulation of conclusions; constructive and strategic forecasting – in substantiating the directions of the formation of institutions in the national economy and the definition of strategic directions for the development of the agrarian sector in the future. Findings. It is established that the domestic agrarian sector in recent years suffered quite serious reformational impacts on the institutional environment of the functioning of economic actors, in particular the influence of regulators on the transformation of agricultural development. It is substantiated that under institutional transformations it is appropriate to understand the changes that occur as part of the creation of new rules of conduct of participants, containing a specific mechanism for ensuring compliance with these rules, as well as improving organizational and economic regulators within the existing set of rules for all participants It is determined that the institutional system is a structured set of interrelated informal rules that determine, on the one hand, a system of incentives for increasing the efficiency of interaction between subjects of the agrarian economy, and, on the other hand, restricts the activities of economic agents, which create a certain framework for implementation their target functions in accordance with the law and public interests. Originality. It is established that institutionalism is a relatively new peculiar trend in economic theory, which includes, besides the economic component, social and legal and political factors that are expedient to use in the agricultural sector of the Ukrainian economy. It is substantiated that the system of institutes is in close connection with two other most important social systems: the system of interests and the system of expectations. Practical value. It is determined that institutional changes require systematic effort and cost over long periods of time based on well-balanced, well-formulated and operationally adjusted programs. It is substantiated that real rapid development in the agrarian sector is possible only under the conditions of effective institutional modernization and the creation of the proper institutional environment necessary for the effective conduct of economic activity in agriculture on the basis of the strategy of general modernization of the industry.
Authors and Affiliations
Petro Putsenteilo, Yaroslav Kostetskyi
Keywords
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