The influence of the institutional environment on development of investment activity in the agricultural sector of the economy
Authors: Bakhur Nadiia 
Published: October 2020

Relevance of the research topic. In the conditions of transformation, a special role in the formation of a favorable institutional environment for the intensification of investment activities in the agricultural sector is given to the state as an important institution for the organization of the process and its participants. Formulation of the problem. The relationship of investment activity with the processes of institutional transformation is still poorly studied in economic theory due to the novelty of this process and are systemic in nature. Here, a significant role is played, first of all, by the institutional features of the formation of a favorable investment environment in the conditions of deepening transformation and integration processes in the state. For the transformational economy, the system of economic property relations is an urgent problem, in particular, for the agricultural sector – it is land ownership. Analysis of recent research and publications. Many works of famous scientists are devoted to the issue of institutional theories of investment: A. Spithof [5, p. 330-331], J. Commons [3], W. Mitchell [15], J. Buchanan [4], W. Rostow [24], R. Coase [11], J. Ellull [27], R. Aron [18], J. Galbraith [30], J. Schumpeter [21], W. Favor [19], K. Eklund [7], A. Burley [6], G. Minz [6], I. Nadler [6], S. Chase [6], P. Drucker [26]. In Ukraine, scientific research of domestic scientists using the methodological tools of institutionalism A. Bykova, M. Kolesnik, T. Kosovo, N. Marenkov, A. Ivashina, V. Fedorenko is also presented. In the works of N. Marenkov [13], A. Bykova [1], O. Ivashina [1], M. Kolisnyk [9], M. Tugan-Baranovsky [20], the organization of the process of formation and development of non-market forms of economic interactions in conditions of transformation of social and economic relations. Selection of unexplored parts of the general problem. A special study of investment activity in the context of deepening transformation processes in the national economic system requires consideration of two aspects of this process: the need and principles of adaptation of investment institutions as carriers of another institutional tradition to the market environment; study of those positive institutional effects of direct investment, which contribute to the acceleration of institutional transformations, the adaptation of world "institutional standards" to national conditions. Setting the task, the purpose of the study. To study the theoretical and practical aspects of the relationship between structural and institutional transformation with the organization of the investment process in the agricultural sector. Method or methodology of the study. Institutionalism, as a scientific field, emerged at the turn of the XIX-XX centuries, as a trend that criticizes the methodological positions of the neoclassical school. Among the well-known representatives of this school are usually T. Veblen, J. Commons, W. Mitchell, D. Clark. At the same time, early institutionalism is sometimes considered as a precursor of Keynesianism [12, p. 28]. The methodological basis of the new institutionalism are the works of the classics of economic scientific thought. Presentation of the main material (results of work).The article examines the features of institutional support in the development of investment activitiesinthe agricultural sector. There is a need to take into account investment capacity in the methodology of analysis of investment potential,in the process of considering investment potential, from the point of view of the institutional approach. The processes of globalization are a catalyst in the search for ways to increase economic prosperity and an important prerequisite for this process is the investment potential. The possibility of using institutional theory in the development of investment activity is proved. A recommendation is given that the investment process and investment activities should be studied and considered in dynamics. Institutionalism focuses on a comprehensive study of economic systems. Theories of institutionalism related to investment are reduced to separate concepts of behavior of market participants and to the analysis of the investment climate. For the formation of international economic relations, an important element in determining the effectiveness of the global economy are approaches to institutional economics. The factor of high technology is an important factor in the formation of an economic institutional system. The subject of knowledge of institutional theory are institutions, and what are its advantages. The institute (as a subject of research), on the one hand, provides a broad view of the development of the economy and society, analysis of the economic system and society as a whole in interaction with other institutions, such as the state, and on the other - requires a deep and specific understanding institutions. From the point of view of representatives of institutionalism, institutions are a way of thinking and acting that is embodied in social customs, institutions, and rules. In the non-institutional direction, institutions are considered as factors influencing the decisions made by economic agents. The field of application of results. Directions for further development of the agricultural sector of the national economy depend on the investment policy that shapes the investment climate in the country and the ability of state institutions to implement it effectively. The investment process, as evidenced by world experience, is able to provide large-scale technical and technological renewal of the agricultural sector, which will result in increasing the competitiveness of agricultural production and ensuring sustainable social and economic development of the country. Conclusions according to the article.It should be noted that according to the methodology of the system approach, investment activity has all the hallmarks of a system that is developing dynamically and is influenced by external and internal institutional environment. The development of Ukraine's economy in the conditions of deepening transformation and integration processes is characterized by increasing influence of uncertainties and risks of the modern institutional environment in which investment activities are carried out not only by national but also foreign investors. Increasing the degree of uncertainty of the investment process in the transformation of the national social and economic system is due primarily to the fact that in the transition to market relations remain institutions and institutions inherited from the previous economic system, and market institutions are not yet formed or poorly functioning. Also, the development of the investment process is influenced by the constant change of the economic situation and the situation and competition in the investment capital market, the introduction of new technologies and methods of organizing the production process, and so on. Thus, institutionalism is a productive direction in the development of investment activities.