INSTITUTIONAL RESTRICTIONS OF INNOVATIVE EXPORT-ORIENTED DEVELOPMENT OF UKRAINIAN AGRARIAN BUSINESS

Abstract

The article highlights the importance of agrarian business for Ukrainian economy, which is gradually be-coming an important player in the world agrarian market. It is shown that the successful export, other things being equal, should be facilitated by the development and implementation of innovations, the transition of agrarian enterpris-es to a qualitatively new level of production process. At the same time, it was found that both small farms and large agrarian holding companies are cautious in implementing innovative solutions due to the imperfect structure and low quality of the institutional environment elements, which in turn largely determines the commodity structure of domestic export. It is shown that the new opportunities for product export which were opened by the associated membership of Ukraine in the EU are not fully used due to unresolved problems and barriers in the agrarian sector. A large number of problems related to the export of Ukrainian agricultural products arise due to significant differences in economic, polit-ical, social and other institutions of our country and other countries-participants of the international trade. The main institutional problems that create additional barriers and obstacles for domestic exporters of innovative products to foreign markets are: 1. The institution of ownership in Ukrainian agrarian business, which is in a state of transfor-mation, creates an uncertainty; 2. Institutions of state power that create formal rules of the game in the market generate imperfect legislation, inconsistencies in certain laws and regulations; 3. Institutions of innovation, which produce sci-entific knowledge and innovation, ensure their commercialization and use, are formally available in the country, but functionally incapable; 4. Financial institutions, whose resources are the main source of funding of innovations, limit the ability to attract resources to potential exporters; 5. Institutions of administration of foreign economic activity pro-duce bureaucracy and long-term receipt of documents; 6. Institutions of education, information, interaction of econom-ic agents are imperfect; 7. Institutions that ensure compliance of quality and safety of Ukrainian products with EU laws are ineffective.