Systematization of agro-industrial formations types according to various classification features

Sergey Kaptalan

doi:10.33987/vsed.2-3(70-71).2019.208-218

Authors

Sergey Kaptalan Odessa National Economic University, Ukraine https://orcid.org/0000-0002-0298-9524

DOI:

https://doi.org/10.33987/vsed.2-3(70-71).2019.208-218

Keywords:

agro-industrial formations, integration, agro-industrial complex

Abstract

The article provides a critical analysis and systematizes modern approaches to the definition of “agroindustrial formations”. So, on the basis of the analysis and genesis of concepts, under agro-industrial formation it is offered to understand set technologically, economically, legally and organizationally connected enterprises and the organizations which are carrying out: providing with resources, production, transportation, storage, processing, marketing and sale of agricultural and agro-industrial production. Following consideration of the historic causes and preconditions of occurrence and development of integration processes in the agricultural sector of the economy, based on the determination of the content of the agricultural sector as a sector of the economy, examines the nature and basic specific features of economic activity of enterprises of agro-industrial sector. Theoretical aspects of economic integration of agro-industrial enterprises are analyzed. Under the integration of enterprises of the agro-industrial complex, it is proposed to understand the process of their unification, deepening of interaction, and such a state of enterprises that provides manageability, integrity, orderliness of their functioning. According to the type of integration processes of agro-industrial formations, it is proposed to distinguish three types of integration into the agro-industrial complex: horizontal, vertical and diversified integration. The essence, as well as positive and negative consequences of each type of integration into the agro-industrial complex are determined. The main positive effect of economic integration is the effect of increasing the scale of activities, as well as the synergistic effect of the unification of economic entities. Also, as a result of consideration of the main theoretical approaches to the classification of AIF, it was systematized representation of scientists about the types of AIF on other various classification features, namely: form of ownership; territorial coverage; industry affiliation; size; method of management; degree of legal independence of subjects; level of economic independence; organizational and legal forms. The classification allows to organize information about agro-industrial formations and is the basis for the development of a systematic idea of the nature of integration in the modern agro-industrial complex.

Author Biography

Sergey Kaptalan, Odessa National Economic University

PhD in Economics, Lecturer of Enterprise Economics and Business Organization Department

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