Capital as a factor in the production and transformation of a state enterprise into a private company

Transformational economy is a fundamentalchange of major economic institutions and the formation of a new economy. The duration of the transition period, as a rule, depends on the duration of how quickly private capital is created as a factor of production. The key institution of the modern market economy is the firm. In the domestic economy, the firm as a special institution is still at the stage of its formation and development. The formation of a firm in the transition period is not always possible to analyze from the standpoint of the neoclassical theory, since its methodological and categorical base is not sufficient for an adequate analysis and explanation of economic phenomena in dynamics. This necessitates the application of an institutional approach that takes into account both the human factor of production and the extent to which entrepreneurial ability, as a factor of production, can be effectively realized in a form of organization such as a firm.

The processes of economic reform lead toto the fact that the joint-stock company becomes the dominant economic and legal form of business activity. However, the possibilities of privatized enterprises can be rather limited. Therefore, for their adaptation, private capital as a factor of production is in demand. Unresolved practical problems necessitate a theoretical study of the influence of institutional factors on the process of formation of a firm in a transitional economy. During the transition period, the state enterprise is transformed into a firm, private capital is formed as a factor of production and development. In the course of reform, the old formal institutions are disappearing - the party and economic vertical, centralized planning and pricing, "public property". In the transformational economy, the state on a large scale "discards" the fulfillment of economic functions that are not characteristic of it.

The absence of market traditions, institutions andmechanisms hinders economic growth. Today, economists note that the central place in the current socio-economic transformation processes should be given to the transformation of the institutional structure and how quickly and in sufficient volume private capital will be formed. As a factor of production, it plays a decisive role in the structuring of the new economy. The process of formation of institutions can take place in an evolutionary or revolutionary way. The evolutionary version presupposes the emergence of new formal institutions in the process of transforming the already existing ones. The second option implies the import of institutions that have already proved their effective influence on the activities of economic entities.

However, the process of forming an institutionalenvironment in the transformational economy occurs mainly through the "import of institutions" developed and successfully proven, market economy. The following directions of import of the institutes are known: on the basis of the theoretical model, according to the standards samples that existed in the history of the given country, following the example available in other countries.

Import of institutes of firms of developed countries has its ownboth positive and negative sides. The negative moment of import of institutions is their non-optimal nature for this institutional environment. Institutions acceptable in some countries may become completely unusable and unviable for other countries, and especially for economies that have just begun to change the institutional structure, where the incentive system is still oriented towards the old administrative system, and the interest of economic entities in the results of their activities remains weak or insufficient to form a new institutional structure.

In short, the import of institutescontradictory impact. On the one hand, it promotes a more rapid reform of the institutional environment of the firm. On the other hand, the transfer of institutions causes an increase in instability and conflict in the socio-economic development of the firm.

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