Institutional framework for the development of domestic gas transportation enterprises Cover Image

Інституційні засади забезпечення розвитку вітчизняних газотранспортних підприємств
Institutional framework for the development of domestic gas transportation enterprises

Author(s): Ivanna Zapuhlyak
Subject(s): Economy
Published by: Інститут трансформації суспільства
Keywords: Institute; Institutional Environment; Development; Gas Transportation Enterprises

Summary/Abstract: Introduction. One of the main conditions for further development of the national gas transportationsystem is the formation of a stable and transparent market for natural gas in Ukraine, which should beinstitutionally formalised in order to reduce uncertainty and facilitate the integration processes. Existence of clear and fair marketrules, an adequate and effective legal framework and the availability of all necessary institutions are essential to attract longterminvestments in the domestic gas sector. The purpose of the article is to study theoretical and applied aspects of institutionalsupport for the development of domestic gas transmission companies in modern conditions, namely to identify the nature of theinteraction of the institutional environment of the national gas transportation enterprises and possible areas for further study oftheir interaction and effectiveness. Results. The institutional regulation of gas transportation enterprises is a purposeful activityof influencing their development aimed at improving all the relevant elements (the strategy, the structure, the systems, the style/culture, the staff, skills and shared values) and establishing links between the actors in the natural gas market with regard to theinfluence of political, legal, economic, social and cultural institutions in conditions of instability. Market institutions are dominant inthe process of institutionalisation of gas transportation enterprises. They include items such as private property, competition andfunctional infrastructure elements (banks, stock exchanges, etc.) and institutions of law (the system of legal norms that regulatethe legal relationship between the actors in the gas market, the State and the population. Conclusions. The developed institutionalenvironment that will be expressed in the form of all necessary institutions and their mutual consistency is a significant dominantin ensuring effective functioning and development of the domestic gas-transport enterprises today. In particular, proper institutionalsupport will improve the efficiency of internal business processes at gas transportation enterprises and promote effective technicaland organisational development. Under the conditions of an unstable operation of gas transportation enterprises, coordination ofactivities of the abovementioned institutes will reduce the level of uncertainty of the environment, ensure the effectiveness of longtermforecasting of their development, attract long-term investments and reduce transaction costs.

  • Issue Year: 158/2016
  • Issue No: 3-4(2)
  • Page Range: 39-42
  • Page Count: 4
  • Language: Ukrainian