Participation of the joint-stock sector in the innovation-driven growth of Ukraine’s economy: problems and ways to solve them
Journal Title: Visnyk Ternopilskoho natsionalnoho ekonomichnoho universytetu - Year 2016, Vol 3, Issue
Abstract
The article considers the institutional factors hindering the innovation-driven growth in Ukraine’s economy. It has been theoretically proved, that in the market economy the downward trend of profit rate forces entrepreneurs to innovate and take the accompanied risks for the sake of earning monopoly profits. The nature of the national joint-stock sector as a non-market body, which developed as a result of the free mass privatization of state enterprises, has been described. This stems from the fact that corporatization and privatization were used by the transitional society as the main tools for national private capital formation and a return to market economic system. The analysis allows us to state that postprivatization joint-stock sector turned into a target for the predatory redistribution and increasing concentration of corporate ownership in the hands of empowered outsiders. Therefore, it is concluded that non-market way of corporate capital (ownership) formation led to the rise of oligarchic power that is exercised as a form of self-protection and a broad access toearning quasi-rent at the public’s expense. Based on the analysis of corporate governance in Ukraine, it is postulated that there is a fusion of ownership and management of joint-stock companies as well as the dominance of rent-seeking behaviour of their actual owners. The main causes of self-isolation of the joint-stock sector from the stock market and innovation have been defined: total corruption of authorities; a lack of private property rights; an insufficient economic competition; a broad access to earning quasi-rent; an easier access to bank funds. The author made a generalized conclusion that the aim of owners of joint stock companies to stimulate innovation rests primarily on dismantling the oligarchic system.
Authors and Affiliations
Anatoliy Sirko
Keywords
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