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Vol. 39 (Number 44) Year 2018. Page 19

Institutional mechanisms for sustainable development of the regional agro-industrial complex

Mecanismos institucionales para el desarrollo sostenible de la regional complejo agro-industrial

Roman Gennadevich VLASOV 1; Alena Vladimirovna POSAZHENNIKOVA 2; Anatoliy Vasilevich SHASTIN 3

Received: 10/05/2018 • Approved: 02/06/2018


Contents

1. Introduction

2. Methodology

3. Results

4. Conclusions

Bibliographic references


ABSTRACT:

Food security is one of the topical problems of Russia's economic security. The need to provide the country's population with the required food is becoming especially important in the context of modern geopolitical and geo-economic challenges. To solve this problem, sustainable and sustainable development of agriculture is necessary, one of the tools of which is state regulation and the introduction of modern management methods in the industry. However, it is impossible to improve the management of the agro-industrial complex without the formation of development institutions and mechanisms for their functioning. The article deals with the concepts of institutions and the ways of their formation and application at the regional level for the development of the agroindustrial complex.
Keywords: Institutes, agro-industrial complex, sustainable development, state management of the industry

RESUMEN:

La seguridad alimentaria es uno de los problemas de actualidad de la seguridad económica de Rusia. La necesidad de proporcionar a la población del país los alimentos necesarios es cada vez más importante en el contexto de los desafíos geopolíticos y geoeconómicos modernos. Para resolver este problema, el desarrollo sostenible y sostenible de la agricultura es necesario, una de las herramientas es la regulación estatal y la introducción de métodos modernos de gestión en la industria. Sin embargo, es imposible mejorar la gestión del complejo agroindustrial sin la formación de instituciones de desarrollo y mecanismos para su funcionamiento. El artículo trata sobre los conceptos de las instituciones y las formas de su formación y aplicación a nivel regional para el desarrollo del complejo agroindustrial.
Palabras clave: Institutos, complejo agro-industrial, el desarrollo sostenible, la gestión estatal de la industria

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1. Introduction

Modern economic and political realities in Russia and the world geo-economic atlas constitute a group of challenges to the problems of economic security of the state, of which food security is an integral part, which depends on the indicators and indicators of the development of agriculture and the agro-industrial complex.

It should be noted that economically sustainable agriculture ensures the solution of the problems of both the development of the state as a whole and its independence from the negative factors of instability within the state and its external environment. The state, indicators, trends, strategies for the development of agriculture and the agro-industrial complex are determined by the producers of the industry, representing a really existing institution of development and forming a functional institutional environment of the agricultural sector and related sectors of the economy and the socio-cultural sphere. At the same time, the institutes of development and sustainable operation of the agriculture and agro-industrial complex objectively develop less dynamically than related industries, trade, finance, socio-cultural environment, including through entrepreneurial activity, less dependent on existing and prospective state support.

State regulation of the agriculture and agro-industrial complex is one of the most important criteria for the development of agriculture throughout the world, and the Russian Federation is no exception. As in any country in the world in modern Russia, there are unsolved problems related to the specifics of the functioning of the industry, which can be solved through an institutional approach and institutional changes in the sectoral environment, including through tools for the formation and implementation of the strategy of state and municipal regulation. At the same time, the tool of state regulation itself depends on the choice of the situation strategy in the agriculture and agro-industrial complex, the main trends of its development in a risk-oriented environment at the macroeconomic and microeconomic levels.

2. Methodology

Theoretical and methodological foundations of the institutional environment and related strategies of state regulation of the agriculture and agro-industrial complex are actively developed in modern economic theory.

State regulation is a strategic management tool caused by a reaction to the processes of globalization, competition in the dynamically developing markets of agriculture and food, intraregional processes caused by territorial disparities, uncertainty and the risk associated with the addition of external development factors.

Essential are the economic and civilizational factors associated with the change of vectors of economic development, the national peculiarities of the development of economic and branch systems, the increasing uncertainty of world geographical development. In these conditions, the significance of the formation of sustainable development and the functioning of the management of the agriculture and agro-industrial complex branch is substantially growing.

Socio-economic processes occur within a certain space or region. Each of the regions has its own features related to the resource base, the features of historical development and socio-cultural factors, the specific features of the functioning of the regional economy. To achieve the development goals of such an economic system, it is necessary to take into account the specifics of its functioning. For the Russian Federation, based on the size of its territory, the features of economic activity, it is important to form a strategy based on the symbiosis of national, regional and municipal economic models.

The main categories are the theory and practice of applying the tools of state regulation. In the opinion of a number of specialists, regulation is a direction of development, a movement to bring order, a system. That is why state regulation is treated as the degree of government intervention in economic life.

By a number of authors state regulation is traditionally defined as a system of legislative, executive and supervisory measures implemented by state and public organizations in order to stabilize, adapt the socio-economic system to changing conditions.

State regulation includes the following elements:

State regulation of the economy and its branches is an important constant of institutionalism as opposed to the Keynesian model, which, as the main tool for managing economic systems, considers budgetary financing and tax policy.

One of the tasks of theoretical and scientific-practical studies of institutional transformations in the agriculture and agro-industrial complex is to consider various approaches and schools to manage the institutional environment in order to ensure sustainable economic development of this sector.

The name of a fundamentally new trend in economic theory, like the notion of "institutionalism," was introduced by W. Hamilton, defining "the institution as a common way of thinking or acting, imprinted in the habits of groups and customs of the people."

T.B. Veblen believed that the doctrine of marginal utility does not explain the whole diversity of socio-economic life. Like the whole human culture, this material civilization is a system of institutions - institutional structure and institutional development. Institutions are the results of a habit. Today's situation shapes tomorrow's institutions through selection and coercion, by influencing people's habitual perceptions or by anchoring a point of view or mental perception brought from the past.

The most important properties of the Institute include the following:

Institutions and institutional processes inevitably occur in certain spaces - regions and subregions.

Each territory has its own characteristics: resource security, sectoral opportunities and features of historical development and socio-cultural code, the level of socio-economic development. The development of the country is impossible without an effective process of development of the regions and municipalities that make up its membership.

To solve the problems of effective development of the national economic model in the agriculture and agro-industrial complex, minimizing risks and crises, it is necessary not only to ensure state regulation by the federal center, but also to ensure that regional and municipal policies based on institutional principles and features of development of territories.

The theoretical and methodological basis of institutional regional strategic management is made up of: classical placement theories, theories of institutionalism, classical and neoclassical economic theories, theories of spatial organization, theories of regional growth and the concept of innovative development, theories and concepts of cluster development.

The concept of integrated mesoeconomic complexes is of great importance for the development of regional strategies for institutional development.

Mesoeconomics can be defined as a branch of economic science that occupies an intermediate position between macro and microeconomics and studies the economy of industries, interindustry complexes, integrated sectoral and territorial structures, economic and social development of regions of different rank, as well as features of interaction and mutual influence.

The integrated institutional meso-economic structure is an aggregate of interrelated elements of branch regional development institutions located in a certain territory of interests, characterized by communications, proportions, interrelations and participating in certain types of reproduction activities. One of the methodological tools for strategic analysis of integrated institutional meso-economic regional structures is the institutional economic theory of D.R. Commons, who introduced the concept of "transaction" into practice, in his opinion, the transaction and its agents are the smallest unit of measurement of institutional economic activity, within the system of which the following elements are distinguished: negotiations, acceptance of circumstances and their implementation. The types of transactions are also defined: trade, management and rationing. Thus, the transaction process, in terms of D.R. Commons, is the definition of "reasonable value" of benefits, which ends with a contract that implements the assurance of expectations.

Following the principles developed by D.R. Commons, the agents of the economic activity of the agriculture and agro-industrial complex branch in their strategic and operational activities tend to minimize transaction costs and for this purpose create institutions, as man-made restrictions that stimulate all elements of the internal and external environment of the organization, enterprises, institutions.

The criterion for the effectiveness of the institutes in the agriculture and agro-industrial complex sector is the minimization of costs or the reduction of costs, while ensuring the necessary conditions for the development of business of economic entities. Thus, as D.R. Commons, institutions are important, as they directly affect the performance and dynamics of the economy.

Thus, it is possible to consider in a generalized form the theoretical and methodological basis of regional development and strategic management.

Concept

Concept name

Concept author

Classical placement theories

The theory of agricultural standard

Theory of a rational standard of an industrial enterprise

The theory of "central places"

Theory of the location of industry

J. Tyunen

V. Linehardt

V. Kristaller

A. Lesch

A. Weber

Classical economic theory

The theory of absolute advantages

The concept of economic liberalism and factors of production

Theory of production costs

Theory of relative advantages

A. Smith

D.B. This

T. Malthus

D. Riccardo

Neoclassical economic theory

Theory of the ratio of factors of production

Theory of the scale effect

The theory of intra-industry trade

The theory of technological gap

E.Hepsheo

B. Olin

P. Krugman

K. Lancaster

B. Balassa

M. Posner

The concept of spatial organization of the economy

The doctrine of spatial interaction of markets

Theory of spatial diffusion of innovations

The theory of growth poles

The concept of "center-periphery"

W. Izard

T. Hagerstrand

P. Hagget

F. Peru

J. Friedman

Theories of regional growth and the concept of innovation development

The theory of the nation's competitiveness

The concept of the value chain in the context of globalization

New economic geography

The concept of the national innovation system

The concept of a regional innovation system and the model of innovation growth

M. Porter

T. Jerreffi

N. Kfugman

J. Schumpeter

B. Asheim

A.Izaisen

Concepts of institutions and institutionalism

The concept of a regional cluster

Models of regional clusters

Theory of industrial clusters in space

The concept of institutions and institutionalism in the economy

The concept of neoinstitutionalism

The concept of institutional economic theory

M. Porter

S. Rosenfeld

P. Maciell

M Lorentz

M. Porter

T. Veblen

W. Hamilton

R. Coase

O. Williamson

D. North

D.R. Commons

The system of methodological and organizational and managerial bases of regional development and the formation of institutions of the regional branch structure of the economy is shown in the figure.

It should be noted that the development of the agriculture and agro-industrial complex in the system of the national, regional and municipal economic model operating in the Russian Federation has fundamental differences from comparable countries in terms of socio-economic development for the following reasons:

• the presence of a large territory with an uneven population density, which requires the formation of a logistics infrastructure for food supply to all regions and municipalities at the required level;

• high risks of production of agricultural products, conditioned by climatic conditions, which requires financial investments from the state for the formation of predictable price dynamics, ensuring the stable functioning of agricultural producers;

• insufficient qualification of personnel in regional, municipal and entrepreneurial structures, which makes it difficult to introduce modern technologies for effective agriculture.

3. Results

The subject of our analysis are the branches agriculture and agro-industrial complex of the Republic of Sakha (Yakutia) in general and the subregion "Western Yakutia" in particular.

The Republic of Sakha (Yakutia) is a strategically significant region of the Russian Federation. In the Republic live 960 thousand people, by its natural and territorial conditions, the Republic is a unique region that has no analogues in the Russian Federation.

The Republic of Sakha (Yakutia) is the largest region in the world. The total area of the territory is 3.1 million square meters, more than 40% of the territory of the Republic is in the Arctic zone. The Republic of Sakha (Yakutia) belongs to the strategically important mineral-raw and mining regions of the Russian Federation. In terms of natural resources and their potential, the Republic holds leading positions in the Russian Federation.

At the same time, the natural and climatic conditions of the RS (Y) are extreme, since most of the Republic's territory is located in permafrost zones and in the Arctic space. The average population density in the Republic is 0.32 people per square kilometer.

In the Republic of Sakha (Yakutia) there is a historically complex and contradictory spatial and economic structure that is combined with the natural and climatic, sectoral, settlement and resource potential, the differentiation of the subregions within the RS (Y), which leads to problems in ensuring an adequate level of food security in the territory

The analysis of risks and weaknesses of the economic and industrial development of the Republic of Sakha (Yakutia) including agriculture and agro-industrial complex identified the following target indicators:

• Features of economic activities associated with natural and climatic conditions. Characterized by seasonal dependence - shortening the life of machinery and equipment, rising costs in construction, differentiation of the state of agro-industrial complex and agriculture in the subregions of the RS (Y).

• A raw material model of economic development, where the share of industrial production in the gross regional product is 53%, of which almost 90% is accounted for by the companies of the world and Russian leaders in the extraction of minerals.

• Lack of transport infrastructure, characterized by the fact that only 8.7% of the RS (Y) have year-round transport accessibility, 55% of rural settlements have the opportunity to use paved roads. Roads with seasonal exploitation are 92%, 50% of waterways are limited for navigation.

• Isolation of the power system of the RS (Y) from the unified energy system of the country. At the same time, wear of energy facilities is 66%, there is a significant percentage of the so-called "local energy capacity", the cost of tariffs is 219 rubles per kilowatt/hour, with an average cost in the Republic of about 36 rubles a kilowatt/hour.

• The underdevelopment of the engineering and social infrastructure, where the share of emergency housing is 16.6%, and the deterioration of utility networks is 70%.

• The systemic problems of the agriculture and agro-industrial complex are characterized by disproportions in the level of the development of the industry according to the level of the subregions and their municipal formations. 35% of the population of the RS (Y) live and work in rural areas. At the same time, central heating provided 25.5% of the housing stock in rural settlements, 6.4% in water supply, 7.7% in sewage, and 21.3% in gas. The entire territory of the RS (Y) is in the zone of risky farming, effective economic activity is possible only in the Western and Southern Yakutia, the sown area of which occupies 50% of the RS (Y).

• Problems of employment of the population. The share of employed in agriculture and the agro-industrial complex, the budgetary sphere and the housing and communal services sector is 52.1%.

• Management structures are characterized in official and prognostic documents of the RS (Y) as inefficient at all levels, but especially at the municipal and economic levels.

In accordance with the peculiarities and prospects of the economic development of the Republic of Sakha (Yakutia) and the enhancement of the effectiveness of the system for managing the state and development of the Republic, the formation of high-tech modern development institutions in the agriculture and agro-industrial complex, an analysis of the territorial planning of the Republic is needed on the basis of contemporary realities.

In spatial terms, the territorial structure of the Republic of Sakha (Yakutia) is 34 municipal districts, 2 urban districts, 48 urban settlements and 361 rural settlements. The socio-economic development strategy for the Republic of Sakha (Yakutia), developed up to 2030 with the definition of the target vision until 2050, determines that the spatial structure of the economy of the Republic is formed by subregions united in economic zones - Central, Western, Eastern, Southern and Arctic.

The allocation of economic zones to the subregions in the Republic is due to their large territorial organization, distinguished by its administrative and territorial community, the stability of administrative borders, the commonality of transport and energy infrastructure, clearly expressed specialization of the economic complex based on the use of favorable natural and socio-economic conditions of the territory, socio-geographical identity, common economic and socio-cultural ties, the similarity of natural and climatic conditions.

The balance of territorial development provides for the identification of directions, forms and methods, practical tools for determining measures to form an institutional environment at the municipal and inter-municipal level in terms of the sectoral and intersectoral principle of organizing growth points in the development of the region on the subregional principles of organization and decision-making.

The main goal in the spatial development of the RS (Y) is the strategy of forming branch and inter-branch development institutes built on the territorial and functional principle.

The main design goals and strategic guidelines related to the further use of territorial (subregional) disparities and the vision of the spatial and sectoral development of the RS (Y) include:

• intensive strengthening of the economic role of the Yakut metropolitan agglomeration;

• interdistrict differentiation continues to intensify in socio-economic development, through mechanisms of strengthening the role of transfer-redistribution mechanisms, decision-making at the state level to reduce inter-territorial differences in the level and quality of life of the population, the ground for new forms of entrepreneurial stimulation for monoprofile settlements;

• low indicators in the field of transport logistics, which objectively reduces the indicators of economic development, and is a source of diversion of budgetary funds to support the life of Arctic territories, hard-to-reach settlements, rural areas.

• territorial differences in the development of individual subregions lead to a deepening of spatial disproportions in the scale of the state, strengthening the outflow indicators of the population, from depressed areas and require the improvement of the foundations of balanced spatial development.

The strategic efforts will be aimed at creating a fundamentally new image of regional and subregional development that will ensure the optimal and highly effective territorial organization of economic growth, comfortable living and living conditions, mobility of the population on the following project-specific targets:

• organization of the territory of the territory ensuring the improvement of the quality of life of the population, effective development of resources and population resettlement, minimization of costs for supporting the infrastructure and maintaining interterritorial links;

• the achievement of a new quality of existing strong points of growth in regional and subregional development;

• development of the "agriculture and agro-industrial complex" through the instruments of forming a basic network of rural settlements and ensuring effective management at the municipal level;

• realization of the polyvariate development of mono-profile settlements through the tools of attraction and the reference points of spatial development.

• the formation of the framework of spatial development of the RS (Y) and the provision of effective management at all levels.

The following key events and target indicators are the strategic directions of the development of the agriculture and agro-industrial complex in the Republic of Sakha (Yakutia):

• 35% of the population of the Republic live in rural areas, while the main criteria for indicators of rural development are the depressive environment, which is a consequence of high unemployment, transport and energy inaccessibility, low indicators of improvement and modern housing construction, underdeveloped social infrastructure;

• the spatial development of rural areas involves the implementation of a set of measures aimed at gradually equalizing the conditions for the urban and rural population, the effective functioning of the municipal management of rural areas using the following management technologies:

• transition to project management in state regulation,

the formation of territorial clusters and agro-parks to create conditions for the sustainable operation of the "agriculture" and agro-industrial complex,

• improving the quality of labor resources in the "agriculture and agro-industrial complex" through mechanisms for more fully utilizing available labor resources, attracting and retaining highly qualified personnel in order to solve the problems of personnel supply to the agricultural sector,

• the creation of institutions that facilitate the rapid introduction of scientific achievements into the practical activities of agricultural producers.

In addition, in order to ensure the sustainable operation of the industry, it is necessary to improve the level of comfort in living conditions and accessibility of improving living conditions for the rural population, ensuring year-round transport accessibility, stimulating investment activity in the agro-industrial complex, including creating favorable infrastructure conditions in rural areas, the formation of a positive attitude in the countryside.

From the point of view of creating the necessary decisions in the field of forming the institutional environment of the agriculture and agro-industrial complex in the Republic of Sakha (Yakutia), the following starting conditions in the field of formation of development institutes in agriculture and agro-industrial complex are planned.

The "agriculture and agro-industrial complex" of the region functions in the northern Arctic zone and in more favorable climatic zones of management. Together, the industry functions and develops in the zone of risky farming and animal husbandry. In the Far Eastern Federal District, the share of the Republic of Sakha (Yakutia) accounts for the bulk of agricultural production in the district (tables 1, 2) - from 15 to 18%. The region is characterized by the livestock sector of agriculture, the share of gross livestock production in 2016 was 70%, plant growing 30%.

Table 1
Agricultural products in the Far Eastern Federal District (million rubles)

Years

Far Eastern Federal District (million rubles)

Republic of Sakha (Yakutia)

million rubles

in % of total district volume

2011

112 333

18 840

16,77

2012

114 364

19 700

17,23

2013

110 856

20 867

18,82

2014

146 095

21 847

14,95

2015

162 901

22 436

13,77

-----

Table 2
Agricultural products by farm category (million rubles)

Indictors

2011

2012

2013

2014

2015

Economy of all categories

Agricultural products, total

18 839,8

19 700,2

20 867,3

21 847,3

22 438,8

including plant growing

5 349,1

6 217,8

6 808,6

7 398,8

7 087,0

animal husbandry

13 490,7

13,482,4

14 058,7

14 448,5

15 351,8

Agricultural enterprises

Agricultural products, total

4 866,6

4 818,4

5 319,0

5 824,7

6 231,3

% to total volume

25,83

24,46

25,49

26,66

28,17

Peasant (private) farms

Agricultural products, total

4 994,9

5 001,1

5 305,7

5 607,3

5 614,2

% to total volume

26,51

25,39

25,43

25,67

25,02

Households of the population

Agricultural products, total

8 978,3

9 880,7

10 242,6

10 415,3

10 503,3

% to total volume

47,66

50,15

49,08

47,67

46,81

 

The main indicators for forming the initial indicators of the institutional environment in the Republic of Sakha (Yakutia) are as follows (Table 3):

Table 3
The volume of agricultural production in the Republic of Sakha (Yakutia) (tons)

Indictors

2012

2013

2014

2015

2016

Meat of livestock and poultry

40 121

39 301

35 450

35 469

34 819

Milk

177 554

170 427

168 378

164 572

164 567

Eggs (thousand pieces)

129 241

135 842

135 789

136 389

135 921

Fish production

5161

8610

5116

4731

4966

Potato

73678

76016

76172

71925

75473

Vegetables

31888

37027

36704

35151

35679

Grains

6967

12579

12902

8582

12289

 

The level of self-sufficiency in basic agricultural products is the most important indicator of regional food security in the Republic of Sakha (Yakutia). The main indicators are presented in Table 4.

Table 4
The level of provision of agricultural products produced in the Republic of Sakha (Yakutia) (%)

Indictors

2012

2013

2014

2015

2016

Meat

28,5

28,5

26,5

26,2

23,6

Milk

59,6

58,1

58,2

58,3

58,2

Eggs

58,3

60,8

61,1

60,8

61,0

Potato

60,8

62,3

61,5

58,9

64,5

Vegetables

43,4

47,5

46,7

44,4

47,4

Fish

52,8

52,8

55,2

55,2

55,2

 

4. Conclusions

Thus, the current state of the management system for the development of agriculture and agro-industrial complex of the Republic of Sakha (Yakutia) and western Yakutia as a driver of economic growth of the Republic and the Russian Federation can be described as starting opportunities for the formation of the institutional environment for the development of agriculture and the agro-industrial complex of the Republic of Sakha (Yakutia).

Organizational and functional design of the institutes for the development of agriculture and the agro-industrial complex of the Republic of Sakha (Yakutia) is a real solution to improve the competitiveness of the agriculture and agro-industrial complex of the Republic. It is an important indicator of the formation of the region's food security system.

The introduction of project offices, real instruments of public-private partnership, agro-industrial parks, investment and innovation structures, engineering centers will allow successfully solving the issues of both sustainable functioning and sustainable development of agriculture and food in the Republic of Sakha (Yakutia) for the foreseeable future.

Bibliographic references

On state regulation of agro-industrial production [Electronic resource]: Federal Law of July 14, 1997 No. 100-FZ, in red. Federal Law of 10.01.2003 No. 8-FZ (as amended by Federal Law No. 186-FZ of December 23, 2003). - Access from the reference and legal system "ConsultantPlus".

On the development of agriculture [Electronic resource]: Federal Law No. 264-FZ of December 29, 2006 (as amended by Federal Law No. 6-FZ of February 28, 2012). - Access from the reference-right system "ConsultantPlus".

On approving the Doctrine of Food Security of the Russian Federation [Electronic resource]: Decree of the President of the Russian Federation No. 120 dated January 30, 2010 - Access from the Consultative Plus reference and legal system.

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1. Federal State Budget Educational Institution of Higher Education “Omsk State Pedagogical University”, Russia, 644099, Omsk, Tukhachevsky st, 14; E-mail: vlasov.roman.russia@gmail.com

2. Federal State Budget Educational Institution of Higher Education “Omsk State Pedagogical University”, Russia, 644099, Omsk, Tukhachevsky st, 14 ; E-mail: alena.pos.russia@gmail.ru

3. Raedium Investments, LLC, Russia, 644010, Omsk, Mayakovsky st. 10; E-mail: trioomsk@mail.ru


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