THE ESSENCE OF INTERBRANCH RELATIONS REGULATION MECHANISM IN AGROINDUSTRIAL COMPLEX

Agroindustrial complex development requires the methodology improvement of the interbranch relations research: from theoretical interpretation of the fact it is necessary to move to the direct planning of the models of interbranch relations efficiency. The solution of interbranch connection system p...

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Bibliographic Details
Main Author: O. Tomilin
Format: Article
Language:English
Published: LLC "CPC "Business Perspectives" 2013-03-01
Series:Економіка розвитку
Subjects:
Online Access:http://www.ed.ksue.edu.ua/ER/knt/ee131_65/e131tom.pdf
Description
Summary:Agroindustrial complex development requires the methodology improvement of the interbranch relations research: from theoretical interpretation of the fact it is necessary to move to the direct planning of the models of interbranch relations efficiency. The solution of interbranch connection system problems, as the experience of economically developed countries of the world shows, assists to increase the functioning efficiency of all industries in agroindustrial complex. The restructuring process of agroindustrial complex predetermines the necessity of new economic relations system formation for an agroindustrial sphere. In spite of the fact that the analysis of interbranch economic relations always was one of the main tasks of economic science, this problem topicality considerably increases at the current stage of the economy development. The level of interbranch relations development forms in the modern context the strategic basis for sustainable economic development of agriculture in the country. The general signs of interbranch connections and interbranch relations are: economic and natural factors; economic connections, caused by electricity, heating and water supply; production specialization and co-operation; proportions provisions of the interbranch exchange within the industries and trade and marketing orientation. In author’s opinion, the distinctive features could be considered as: intrasectoral and interbranch connections; technological orientation of production; multilevel system of economic interests of agrointegration parties; mutual exchange of productive activity results among different industries in the form of labour products. Adjusting the interbranch relations inequivalency with the help of relations initiative constructivity among nonagricultral parties and, directly, with agricultural producers should be considered as a fully natural process. The essence of interbranch relations regulation mechanism in agroindustrial complex is the application of integration in a form vertical co-ordination. To author’s mind, the detailed examination of interbranch relations regulation mechanism in agroindustrial complex results in the industry efficiency decrease and agrarian production major recession. In author's opinion, the state regulation should establish such interbranch relationships between the spheres of production, provision, storage, processing and trade, providing the partners’ relations of vertical integration. The participants’ mutual economic interests of one vertical line should form the basis for these relations.
ISSN:1683-1942