INSTITUTIONAL SUPPORT FOR ATTRACTING INVESTMENTS IN THE AGRARIAN SECTOR OF THE ECONOMY IN THE CONDITIONS OF INNOVATIVE DEVELOPMENT

Abstract

Institutional dynamics refers to understudied processes both in economic theory and in economic practice. There is a lack of systematic knowledge on the composition, structure, and functioning of the basic socioeconomic institutions exactly of the investment process, therefore, the purpose of the paper lies in the study of institutional support for attracting investments in the agrarian sector of the economy. Methodology. The theoretical and methodological basis of research is the dialectical method of cognition and systematic approach through which there are theoretical and methodological foundations of strategic innovation institutes of the agricultural market. The results showed that the institutional environment of investment provision of the agrarian sector of the economy includes, on the one hand, agricultural producers with relevant on-farm structural units, managers, professionals, organizers of production and economic processes; in rural areas; local authorities and government; and on the other, a set of functionally competent institutions (legal, scientific, educational, informational, financial, controlling, deliberative, etc.). Each of these institutions has a corresponding purpose, socio-economic relevance, and is an integral part of this system. Practical implications. The studied institutions create incentives for the development of science and education, encourage the mobility of production factors, facilitate the transfer of scientific and technical information and the introduction of new technologies, promoting entrepreneurship and innovation. Conversely, inefficient institutions reduce the potential level of well-being, reduced reliability assurance of property rights and enforce contracts. Value/originality. The increasing importance of the institutional environment of investment provision of the agrarian sector of the economy gives an opportunity to define the latter as an important intangible factor in the development of agriculture and society as a whole, which creates the necessary conditions for transformation and development of the agrarian sector. The formation of a modern institutional environment should include a system of regulators, which would provide favourable conditions for attracting domestic and foreign investment, further structuring of the economic complex of the agrarian sector, the reduction of regional asymmetries of socio-economic development. How full the institutional environment of individual units of the investment will be depends on the realization of economic and social development priorities of the Ukrainian village.