Classification of economic entities’ cooperation mechanisms in cross-border space
Journal Title: Регіональна Економіка - Year 2016, Vol 79, Issue 1
Abstract
The article outlines the directions to research the mechanisms related to examining of existing economic institutes, explaining and predicting economic or social consequences and constructing of mechanisms to achieve the defined goals. The necessity of expanding the mechanisms in terms of stimulus of individuals, who have key information and their own goals and may not have an incentive to conduct themselves relevantly, is stressed. <br>The classification of mechanisms of economic entities’ interrelation is developed by the following parameters: by design; by entities (designers); by formalization; by interaction object. It is mentioned that dichotomous division of all possible interrelation types into two opposite types – cooperation and competitiveness – is the most common. Cooperation of economic entities in cross-border space is proposed to be classified by the following parameters: by the nature of basic institute; by formalization; by legitimization; by cooperation form. <br>Peculiarities of economic entities’ interrelation through cross-border markets are defined by its nature: occasional interrelation; established interrelation. It is found that according to the theory of interaction the cross-border market participants not only act in the fixed conditions, but also have the possibility to become the entities, which form the structure of the given market and create the rules of its functioning as well as form the new markets. Economic entities’ cooperation is characterized through cross-border markets using the conventional economic approach and interaction approach. It is found that in the course of cooperation at cross-border markets the relatively stable status hierarchies are formed compared to other markets (regional, local), because constant monitoring mechanism is not implemented and, therefore, the entities cannot mutually position themselves in relation to each other. However, there also exist the mechanisms of active adoption of leading entities’ conduct or mimetic (imitative) isomorphism. It is defined that cross-border links can be defined mostly as stable and simultaneously selective interactions, which help the entities in their striving for control over actions of other entities. Economic agreement is the most essential element of market interaction, kind of a core. It stipulates availability of not less than two participants, which establish the exchange terms on the basis of two interdependent mechanisms – structural and interactive. <br>The proposed classification of mechanisms of economic entities’ interrelation in cross-border space is essential in the process of research and detection of existing mechanisms of economic entities’ interrelation in cross-border space and construction of new ones in order to activate interaction of economic entities in cross-border space and eventually obtain positive synergic effect on both sides of the border.
Authors and Affiliations
Iryna R. Tymechko
Keywords
Related Articles
- EP ID EP438082
- DOI -
- Views 143
- Downloads 0
Features of dynamics of structural changes in the economy of Ukrainian regions
The article focused on the fact that the main structural imbalances of the economy of Ukrainian regions are: high resource, material and energy intensity of production, excessive extensive development of primary industri...
Migration factor for the development asymmetry of border regions of Ukraine and Poland
In terms of the current crisis trends in Ukraine’s development, stagnation of the national economy, aggravation of the armed conflict, a considerable decrease in the level and quality of public life, there is a constant...
Theoretical approaches to the typology of spatial forms of business activity in the region
On the basis of generalization of current theoretical approaches, the essence of spatial forms of business activity that are the drivers of economic development of the regions, are characterized by different features and...
Approaches to reinsurance protection optimization
The aim of the research is to determine the methodological principles of constructing the optimal insurance portfolio based on reinsurance mechanism. <br>In the article the features of the use of proportional and non-pro...
Specific features of formation of self-sufficient combined communities in Ukraine
The article observes specific features of formation of united local communities in Ukraine according to the principle of economic efficiency. Influence of amount of population and area of united territorial community on...