BUSINESS INFORM JOURNAL.

УКР

ENG

Search:

REGISTRATION CERTIFICATE

KV #19905-9705 PR dated 02.04.2013.

FOUNDERS

RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE)

According to the decision No. 802 of the National Council of Television and Radio Broadcasting of Ukraine dated 14.03.2024, is registered as a subject in the field of print media.
ID R30-03156

PUBLISHER

Liburkina L. M.

SITE SECTIONS

Theoretical Bases of contraction in the Agrarian Sector of the Economy
Hutorov A. O.

Hutorov, Andrii O. (2020) “Theoretical Bases of contraction in the Agrarian Sector of the Economy.” Business Inform 1:174–181.
https://doi.org/10.32983/2222-4459-2020-1-174-181

Section: Agricultural Economics and Agribusiness

Article is written in Ukrainian
Downloads/views: 0

Download article (pdf) -

UDC 334:001.8

Abstract:
The article is aimed at generalizing and systematizing the theoretical bases of contraction in the agrarian sector of the economy. It is displayed that the economic content of the contraction mainly depends on the paradigmatic foundations of a certain school of economic theory, as well as on the economic-political factors of the country’s socio-economic development. The contents of the categorical apparatus of the contraction are specified, its subject-object area is defined. It is confirmed that in the agrarian sector of the economy, the contraction should be understood as the process of agriculture on a contractual basis between a contractor and a contractor on the basis of a pre-contracted agreement of contraction. The object of the contraction is defined by quasi-integration economic contractual relations between the contraction entities concerning the production and/or supply of products (works, services) of a certain volume, quality, at a certain time and at a fixed price. The subject of the contraction is the agreement of contraction of agricultural products, works and services. The subject composition of the contraction depends on the model of its implementation and covers contractors (agricultural producers who carry out their production activities on a contractual basis), contractants (customers) and the State (implementation of the State regulation and public supervision). The methodological bases of the contraction are generalized at the macro-level - within the contract theory (taking into account approaches to market, intra-company, industry and public coordination) and the life cycle theory; at the meso-level - the theory of transaction costs and the agency theory, in particular the theory of forced contracts; at the micro-level - the neoclassical theory of firm, the theory of strategic management and key competences. It is determined that the institutional and transactional determinants of the contraction in the agrarian sector of the economy are spatial development and placement of agro-industrial production, institutional environment of agribusiness entities, market infrastructure, technical-economic characteristics of products, uncertainty of market both in the quality and in the prices, production technology, as well as institutions of quasi-integration of the contract interaction.

Keywords: contraction, quasi-integration, contractual relations, contractor, contractant, agrarian sector of the economy.

Fig.: 2. Bibl.: 16.

Hutorov Andrii O. – Doctor of Sciences (Economics), Senior Research Fellow, Senior Research Fellow, Department of Organization of Management, Public Administration and Administration, National Scientific Center «Institute of Agrarian Economics» of NAAS of Ukraine (10 Heroiv Oborony Str., Kyiv, 03680, Ukraine)
Email: [email protected]

List of references in article

Hutorov, A. O. Rozvytok vyrobnychoi kontraktatsii v ahrarnomu sektori ekonomiky [Development of Industrial Contracting in the Agricultural Sector of the Economy]. Kharkiv: TOV «Smuhasta typohrafiia», 2017.
Rehber, E. “Vertical Integration in Agriculture and Contract Farming“. Working Papers 25991, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance. DOI: 10.22004/ag.econ.25991.
Hutorov, A. O. Rozvytok intehratsiinykh vidnosyn v ahrarnomu sektori ekonomiky [Development of Integration Relations in the Agricultural Sector of the Economy]. Kyiv: TOV «SIK HRUP UKRAINA», 2016.
Singh, S. “Multi-national Corporations and Agricultural Development: A Study of Contract Farming in the Indian Punjab“. Journal of International Development, vol. 14 (2002): 181-194. DOI: https://doi.org/10.1002/jid.858.
Eymard-Duvernay, F. L'economie des conventions, methodes et resultats: en deux tomes. Tome 1 : Debats. Paris: La Decouverte, 2006.
Humphrey, J., and Memedovic, O. Global Value Chains in the Agrifood Sector. Vienna: United Nations Industrial Development Organization, 2006.
Artemova, T. I. et al. Ierarkhiya i seti v institutsionalnoy arkhitektonike ekonomicheskikh sistem [Hierarchy and Networks in the Institutional Architectonics of Economic Systems]. Kyiv: In-t ekon. i prognozirov. NAN Ukrainy, 2013.
Prowse, M. Contract Farming in Developing Countries - A Review. Saint-Hilaire-le-Chatel: L'imprimerie de Montligeon, 2012.
Stigler, G. J. “The Division of Labor is Limited by the Extent of the Market“. The Journal of Political Economy, vol. 59, no. 3 (1951): 185-193.
Kouz, R. G. “Priroda firmy“ [The Nature of the Company]. In K 50-letiyu vykhoda v svet raboty R. Kouza «Priroda firmy», 33-53. Moscow: Delo, 2001.
Williamson, O. E. “Markets and Hierarchies: Some Elementary Considerations“. The American Economic Review, vol. 63, no. 2 (1973): 316-325.
Butyrkin, A. Ya. Vertikalnaya integratsiya i vertikalnyye ogranicheniya v promyshlennosti [Vertical Integration and Vertical Constraints in Industry]. Moscow: Editorial URSS, 2003.
Eisenhardt, K. M. “Control: Organizational and Economic Approaches“. Management Science, vol. 31, no. 2 (1985): 134-149. DOI: https://doi.org/10.1287/mnsc.31.2.134.
Aghion, Ph., and Tirole, J. “Formal and Real Authority in Organizations“. Journal of Political Economy, vol. 105, no. 1 (1997): 1-29.
Besanko, D. et al. Economics of Strategy. Danver: Willey, 2013.
Prahalad, C. K., and Hamel, G. “The Core Competence of the Corporation“. Harvard Business Review, vol. 68, no. 3 (1990): 79-91.

FOR AUTHORS

License Contract

Conditions of Publication

Article Requirements

Regulations on Peer-Reviewing

Publication Contract

Current Issue

Frequently asked questions

INFORMATION

The Plan of Scientific Conferences

OUR PARTNERS

Journal «The Problems of Economy»

The site and its metadata are licensed under CC BY-SA.

Write to webmaster