Agrarian Economy 2017 Т. 10 № 1-2:81-88
INSTITUTIONAL ENVIRONMENT OF FARMING ENTERPRISES DEVELOPMENT
L. Hnatyshyn, candidate of economic sciences
О. Prokopyshyn, candidate of economic sciences
Lviv National Agrarian University
https://doi.org/10.31734/agrarecon2017.01.081ANNOTATION
The article investigates problems of formation of institutional environment of farming enterprises development in Ukraine, having determined instruments of the institutions impact. It is demonstrated that farming enterpris-es occupy certain niches in production of agricultural products and are considered as the way to combine ac-tivation of agrarian entrepreneurship and stimulation of rural territory development. The authors prove that development of farming structure in competitive environment should be subjected to institutional impact. Thus, the work distinguishes definitions of «institution» and «institute», specifies essence and harmonization of the notions concerning farming enterprises. Basing on classification of institutes, farming enterprises are consid-ered as complete institutions and principal elements of institutional environment. Thus, in combination with other institutions, they are able to supply mechanism of production potential revival. The research presents the authors’ interpretation of the category of «institutional environment» as a system of instruments of institu-tions’ impact on performance of farming enterprises with consideration of the elements of both state and mar-ket regulation. It is argued that institutional development of farming enterprises is directly connected with changes of eco-nomic mechanisms of relations regulation in agrarian sector. Legal and economic relations of land ownership are considered a key institution of farming enterprises development. Institutional environment of farming en-terprises development by means of SWOT-analysis is estimated in terms of institutes and institutions, directly influencing indicators of farming activity. Results of the SWOT-analysis prove that liquidation of gaps in insti-tutional environment of farming enterprises development is possible in case of radical transformation of land ownership within transformation of general agrarian relations. The research argues the necessity to integrate efforts of institutes and farming enterprises to achieve indicators of farming enterprises growth.
KEY WORDS
farming enterprises, institution, institute, institutional environment, ownership, institute of farming
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