Capital as a factor of production and transformation of state enterprise into a private firm

Date:

2020-07-03 02:47:06

Views:

615

Rating:

1Like 0Dislike

Share:

Table of contents:

Transformation economy is a fundamental change in the main economic institutions and the formation of the new economy. The duration of the transitional period usually depends on the duration of how quickly private capital as a factor of production. The key institution of the modern market economy is firm. In the domestic economy firm as a separate institution is still at the stage of its formation and development. The formation of the company in the transition period is not always possible to perform from the standpoint of neoclassical theory as its methodological and categorical base is not enough for adequate analysis and explanation of economic phenomena in the dynamics. This necessitates the application of the institutional approach, which takes into account the human factor of production, and the extent to which entrepreneurial ability as a factor of production, can effectively be realized in such a     the organization as a firm.

The Process of economic reform, lead to the fact that the Corporation becomes the dominant economic-legal form of business activities. However, the ability of privatized enterprises can be quite limited. Therefore, their adaptation and demand of private capital as a factor of production. The unresolved practical problems necessitates a theoretical study of the influence of institutional factors on the process of establishment of firms in transition economies. During the transitional period of transformation of state enterprise into the firm, formed by private capital as a factor of production and development. During the reformation disappear previous formal institutions of the party and economic hierarchy, centralized planning and pricing, “public property”. In the transformational economy the state on a large scale “reset” with the performance of uncharacteristic economic functions.

Recommended

Staff evaluation: system and methods

Staff evaluation: system and methods

Personnel Assessment allows you to identify how competent the employees involved in the enterprise, and it is the performance of their work – the most significant factor affecting the efficiency of the company. To clarify the impact of performa...

How to start your own business: important aspects.

How to start your own business: important aspects.

Many people, tired of working for someone else, are increasingly thinking about how to start your own business. Someone wants to open a salon, someone store, and someone enough and vegetable stalls. Before you throw in the pool with his head, it is i...

business activities. its essence and basic functions

Business activities. its essence and basic functions

The Entrepreneurial activity of the citizen – is undertaken at your own risk and independent activity, which aims to systematically profit through the sale of works, goods, services, use of the property. The citizen engaged in such activities, ...

The Lack of market traditions, institutions and mechanisms hampering economic growth. Today, economists note that the Central place in the modern socio-economic processes of transformation should be a transformation of institutional structures and how quickly and in sufficient volume formed private capital. As a factor of production, it plays a determining role in structuring the new economy. The process of formation of institutions can be evolutionary or revolutionary means. The evolutionary scenario suggests that the emergence of new formal institutions in the process of transformation already existed. In the second embodiment, means the import of the institutions that have already proven their effective influence on the activities of economic entities.

However, the formation of the institutional environment in a transition economy occurs mainly through the “import institutions" developed  and successfully proven, market economy. The following directions of import of institutions: based on the theoretical model, standards that previously existed in the history of this country, for example available in other countries.

The Import of the institutions of developed countries ' firms has both positive and negative sides. Negative import of institutions is unsuccessful, merely leading them to a given institutional environment. Institutions that are acceptable in some countries can be totally unsuitable and unsustainable for other countries, especially to economies that just started to change the institutional structure where the incentive system is still focused on the former administrative system, and the interest of economic entities in the results of their activities remains weak or insufficient for the formation of new institutional structures.

In short, the import of institutions has contradictory effects. On the one hand, it contributes to a more rapid reform of the institutional environment of the firm. On the other hand, the transfer of institutions leads to increasing instability and conflict in the socio-economic development of the company.


Article in other languages:

ZH: https://tostpost.com/zh/business/47716-capital-as-a-factor-of-production-and-transformation-of-state-enterpri.html






Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

Comments (0)

This article has no comment, be the first!

Add comment

Related News

Modern methods of research of management systems in the context of a study of the Genesis of the company as a special phenomenon of the economy

Modern methods of research of management systems in the context of a study of the Genesis of the company as a special phenomenon of the economy

As scientific methods of research of control systems and sociological methods of research of control systems, identify several stages of formation of the firm as an economic institution. the First phase of the research methods sys...

Informational support of financial management methods of advertising

Informational support of financial management methods of advertising

the Processes of globalization of information space as a reflection of the General processes of globalization occurring in the world today, of course, can not affect information provision of financial management  and the form...

Social control and identification methods in advertising texts

Social control and identification methods in advertising texts

As a rule, the use of such psychological categories as “conviction”, “manipulation of human consciousness”, “suggestion" in the advertising product performs very efficiently, the functions of soc...

Harmonization of transition to new methods of analysis of economic activities in the environmental field

Harmonization of transition to new methods of analysis of economic activities in the environmental field

a Comprehensive analysis of the process of reforming the Russian economy in recent years reveals the need to apply new types of analysis of economic activity, because the earlier methods of complex analysis of economic activities ...

The calculation of profitability based on the value theory in the environmental sector

The calculation of profitability based on the value theory in the environmental sector

In connection with the transition to a market economy, which were widely used in Russia, methodology of calculation of profitability and other traditional criteria indicating environmental and economic innovations have been incorp...

Methods for management decisions optimization in management

Methods for management decisions optimization in management

one of the most popular methods of optimization of management decisions are: modelling on the basis of mathematics, expert evaluation, brainstorming, game theory.All of these methods can complement each other or work in the comple...