Problemi Ekonomiki (Jun 2017)
Rent and Rent Seeking Behavior in the System of Integration Relations in the Agrarian Sector of Economy
Abstract
The aim of the article is to improve the theoretical and methodological basis of rental relations and rent seeking behavior in the system of integration relations in the agricultural sector of economy. It is shown that the system of economic mechanisms of integration relations in the agrarian sector of economy includes one of the most important and at the same time the most controversial elements — rent seeking behavior. The dialectical unity of rental and integration relations in the agricultural sector of economy follows from the nature of rent itself, its interconnection with economic relations as well as the place in the system of agrarian relations as a whole. This interdependence is empirically confirmed based on the dynamics of frequency of using the terms “integration” and “rent”, as well as their derivatives in scientific works with the Latin and Cyrillic script. The taxonomic system of rent in the modern economic paradigm is developed, rental principles of development of integrated business entities in the agricultural sector of economy are generalized. It is confirmed that the strategy of rent seeking under conditions of imperfection of state and market institutions is unproductive at the micro-level and destructive at the macro-level. Its consequences are the Dutch disease, excessive misuse of funds, low rates of economic development, deindustrialization and disintegration. A productive rent seeking, on the contrary, stimulates innovations, promotes rational distribution of property and resources in economy, raising the level of people’s well-being.
