The role of institutions in the development of agriculture

Petro Putsenteilo, Irina Gvozdecka, Yuriy Klapkiv, Vitalii Karpenko

Abstract: The institutional structure of the agricultural sector is a complex socio-economic system containing economic, organizational, legal, moral and ethical elements. The development of society in the process of market transformation leads to a change in the role of individual institutions and their importance. The aim of the article is to find out the possibilities of institutional systems reforming in agricultural sector on the basis of Ukrainian experience.
In order to achieve this goal, the analysis of institutionalism theories evolution in the context of global development was provided and institutional estimation of the evaluation criteria of both individual types of institutions and the institutional environment of the agrarian sector of the economy was carried out. In order to substantiate main criteria for institutional transformations of the agrarian sector the authors have investigated the establishment and development of agrarian institutionalism in Ukraine and practical realization of the Ukrainian agricultural sector potential.
The methodological basis of the article rests upon fundamental premises of systems theory, structuralism and institution¬alism. The analyzed agrarian transformations have not been completed; therefore they need further research in the process of creation as they perform a key role in the agricultural economy of the region.

Keywords: agricultural (agrarian) sector; formal institutions; informal institutions; institutional system; modernization

Date published: 2020-02-26