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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

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

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