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 145
- Downloads 0
Regulation of balance of national expenditures and national income
The problems of balance of national expenditures and national income are considered. It is emphasized that the gross domestic product (GDP) is the best indicator for modeling of the balance condition of the economy in ge...
Problems of functioning of education network and ways of its consolidation
The existing network of comprehensive educational institutions in Ukraine is geographically branched and is characterized by low efficiency; educational services are characterized by low quality, which requires taking me...
Psychological tools of rural territories branding in the Southern region
The article substantiates the key role of the psychological toolkit in creating and promoting the brand of rural territories of the Southern region as attractive territories for consumers. Based on the analysis of resear...
Institutional support for functioning of the trans-border market of migration services
Considering the market of migration services (MMS), it should be noted that it remains virtually unexplored in Ukrainian and foreign economic science. Thus, today there is no conceptual basis, very few works to determine...
Transforming of the health financing mechanism: challenges for the united territorial communities
Improving the quality of health care delivery is the goal of medical reform. However, the transformation of the financing mechanism of health care should become the breakthrough in its accomplishment. Particularly, the i...