Baltic Journal of Economic Studies (Nov 2016)
FUNCTIONING OF THE SYSTEM OF LOCAL AGRICULTURAL MARKETS: INSTITUTIONAL ASPECTS
Abstract
The purpose of this article is the generalization and systematisation of features of modern institutional support for functioning and development of a system of local agricultural markets. The methodology of research is formed on the basis of systematic approach to the studying socio-economic phenomena and processes that are taking place in a process of functioning and development of the system of local agricultural markets. Research results – based on the system analysis there are substantiated features of functioning and development of the system of local agricultural markets from the point of view of its institutional support. The stated is done with the purpose of determination of practicability, goal orientation, volumes, purpose and tasks of government intervention into the process of functioning and development of the system of local agricultural markets. Applying a general scheme of system analysis to the system of management of local agricultural markets and taking into account that the management system consists of two subsystems – management and controlled, in the context of this research there is made characteristics of the system in the form of answers to a specified list of questions. The essence of developed theoretical and methodological approach lies in the development of legitimate answers to four key questions peculiar and relevantly placed for each stage of research: 1) determination of elements of internal and external environments, which are included to the system of local agricultural markets; 2) characteristics of relations and connections among revealed system elements; 3) a process of functioning of the system of local agricultural markets as itself; 4) features of development of the system of local agricultural markets. Developed measures of regulatory nature aimed at overcoming identified disadvantages and development of the system of local agricultural markets are directed to the satisfaction of needs of target consumers of agricultural production and increase of quality product homogeneity within the commercial batch; increase of efficiency of agricultural production sales by direct manufacturers, formation of logistic system; reduction in prices’ volatility; complex solution of a problem of development of infrastructural component of the system of markets, trading platform network expansion, prevention of misuse of market power, countermeasures for collusion of intermediate sellers and overcoming barriers that obstruct direct manufacturers to enter the markets of agricultural production, increase efficiency of a whole complex of the state regulations. Practical importance of the research results consists in the fact that the formed theoretical and methodological foundations of system analysis of the functioning and development of the system of local agricultural markets from the point of view of its institutional support will make possible its efficient functioning and development.
