The methodological principles for evaluating the size of integrated agro-industrial formations

Abstract

The development of integration relations including those in the agrarian sector of the economy has become topical under the globalization processes. It is scientifically important proceeding from its priority role in the academic researches. The objective of the research is to work out the methodological principles for determining and evaluation of the size of integrated agro-industrial formations. The methodological bases for the research are the dialectic method of cognition, the system approach to studying the economic processes of integration, fundamental principles of the economic theory and the achievements of scientists. The abstract-logic method, the historical method, theoretical generalization, system analysis, synthesis, the monographic method were used in the research. The article considers the methodological principles for determination and evaluation of the size of integrated agro-industrial formations. The current approaches to the evaluation of the size of integrated agro-industrial formations have been analyzed; the advantages and shortcomings of using the basic evaluation parameters have been identified. The criteria for size indicators have been defined, namely: the maximum independence of the specialization type; the importance for various economy sectors' enterprises; the maximum proportional growth under integration and the decrease under the disintegration; the economic validity, pithiness and suitability for comparison; ease of calculations and the use of statistical data. For the sake of consistency of the critical analysis of the size indicators for various economy sectors' enterprises which can be involved in the integration relations, the labor-based, cost-based, market-based, effect-based and assets-based conceptions have been selected. Within the limits of each conception, the basic methodological advantages and shortcomings of the size indicators have been identified. The use of the following size indicators as the main ones has been substantiated: the volume of the value added, the gross output formalized into the standard output (SO) according to the Eurostat's operating methodology, and the enterprise economic value (EV) which is based on the capital market value and the real debt value. The advantages and shortcomings of the methodological approaches to the evaluation of the size of the integrated agro-industrial formations as well as a possibility of their adaptation according to the data available in the statistical reports of domestic economic entities have been described.