Normative and legal regulation of the formation process of market mechanism in the agrarian economy

Oleh Moroz, Roman Lohosha and Oksana Pidvalna

Ekonomika, Journal for Economic Theory and Practice and Social Issues, 2019, vol. 26, issue 5

Abstract: The purpose of the article is to analyze a formation process of a legal base for creation of the market economy, the agrarian market and the market of vegetable products in Ukraine. Research methods. During the research process were used historical (for decrypting a retrospective of formation process of legal base) and logical (for determining substantial sequence of process) as the main methods, as well as a number of general scientific methods of economic research. The methodology of research provided consideration of a factor of regulatory policy as an integral element of the market system, in which to management process of market formation (and branch markets) retrospectively and algorithmically was given a key role in legislative provision. Research results. While studying practical experience of formation of a regulatory framework of the state regulation of the domestic agrarian market and the market of vegetable products in Ukraine in the period of the 90th - the 2000th, it was proved that shortcomings of market reforms and dysfunction, took place as a result of reforms. They were caused by the lack of scientific understanding of a role of a factor of standard and legislative providing processes of market reforms in general, market formation (and branch markets) and also their effective functioning due to a criterion of timely response to dysfunctions. Elements of scientific novelty. Theoretical positions of the general theory of state regulation of the agrarian market were further developed in context of a legal block of formation process of markets. In particular, there was justified thesis on observing necessity of logical sequence and complexity of the legislative provision as a necessary element of market reforms. Accordingly, there was proposed a universal model of a regulatory and legislative support for market reforms, which involves four main stages: 1) formation of market ideology in the society; 2) creation (including legitimization) of market institutions; 3) creation (development, formation) of the main elements of the market and necessary components of the market environment (first of all, competitive environment, as well as regulatory policy, market infrastructure, monetary system, etc.); 4) achievement of conditions for equivalent exchange for the national market in the world market system. The article analyzes correspondence of the real practice in Ukraine to this model and consequences of its absence. Practical significance. The proposed approach for retrospective analysis of processes of formation and functioning of the agrarian market has an applied value, primarily due to the possibility for providing more reliable information on efficiency, content, effectiveness of the state regulation, including implementation of regulations based on the market state. Hence, this approach is a new decision-making system at its core. Tabl.: 2. Figs.: 2. Refs.: 23.

Keywords: Agricultural; and; Food; Policy (search for similar items in EconPapers)
Date: 2019
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