PhD in Economics, Associate Professor Shnitser I. R.

Uzhgorod National University

Theoretical approach to classification of integrated market systems

Construction of effective integrated markets systems (hereinafter – IMS), which provide growth of value added, is a prerequisite for sustainable development of national economy. According to author, IMS – a combination of elements (carriers integration), that interact with each other and form a stable integration connections at different levels of association to its development. Question classification IMS is not enough research in economic theory and acquires the relevance as a theoretical basis for developing mechanisms of management of integration processes in the market context. Developed by author the classification of IMS presented in Table 1.

Classification of IMS can be carried out according to different criteria, but main, according to author, is levels of economic system. By this criterion, we can distinguish micro, meso and macroeconomic systems; first two systems are internal, third - external system (see. Table 1). Main microeconomic unit of any market is economic entities, so first level reflects the peculiarities of subject integration. This can be a integration of unit, carried out in one enterprise. Multilateral integration of subject forms the integration ties between several market entities, while its main types is vertical, horizontal and circular integration.

Commodity market (in geographical boundaries of state) is mesoeconomic system, so integration at mesolevel is market, herewith bearers of integration there are certain sectors of market (raw materials, production, infrastructure and consumer). For classification of IMS at mesolevel we use logistic approach that focuses on movement of material, financial and information flows at stages of logistics chain. Formation of integration ties between subjects of different sectors of one market characterizes the processes intersectoral integration, between subjects sectors of different markets (adjacent and linked) – intermarket integration within a national market system.

Table 1. Classification of integrated market systems*

Criteria of integration		Types of integrated systems	Essence of integration
1. Levels of economic system	1. Microeconomic system	Integration of unit (managerial, technical, industrial, etc.)	Within a single economic entity
		Multilateral integration (vertical, horizontal, circular)	Integration ties between several market subjects
	2. Mesoeconomic system (internal component)	Intersectoral	Between subjects different sectors of one market
		Intermarket (adjacent and linked)	Between subjects sector of different markets
	3. Macroeconomic system (external component)	Intermarket regional	Between regional markets of several border states
		Intermarket state	Between national markets of several states
2. Geographical criterion		Local system	Within local district
		Regional	Within several regions
		National	Within one state
		Mesoregional	Within border regions of different states
		Interstate	Within of different states
3. Complexity IMS		Lesser	Local and partly regional levels
		Average	Regional and national levels
		Great	National and interstate levels

* Developed by author using sources [1, 2]

Macro level oriented on external economic integration, are talking about international IMS. Author allocated two of their types (see. Table. 1): (1) intermarket regional integration envisages association regional markets of several border states; (2) intermarket state integration – of national markets several states. In second case it comes to creation of a common market (e.g. market EU states, South American common market Mercosur). A characteristic feature of common market from other types of integrated systems is mobility of production factors within its territory and creation of supranational institutions of governance the common market.

Considering multiplicity and interconnectedness types of integration in economic systems, developed classification the criterion levels cannot be sole and complete. Therefore, her expedient supplement division IRS by geographical criterion into following types: local, regional, national, mesoregional and interstate systems. First three types of are inherent mesoeconomic systems, last two types – macrosystems.

Indicated types IMS by the criterion of complexity can be lesser, average and great. Interrelation between types (on a geographical basis) and the level of complexity IRS the author reflected in Figure 1.

Figure 1. Qualitative characteristics of relationship between levels of integrated market systems [development by author]

During the analysis of integrated systems must take into account such a feature: degree integration of components in each level is different. Highest degree of integration is characteristic to the subject integration at micro level, average degree of inherent to national market system at meso level, low - external interstate system at macro level. Accordingly, characteristics of integration processes vary from legislated types of associations of economic entity to different speed motion the commodity and financial flows in mesoeconomic market system and liberalization movement of factors production in macrosystem.

References:

1. Rumyantseva, E. E. (2005). New economic encyclopedia. Moskva: INFRA-M [in Russian].

2. Nikishyna, O. V. (2016). Methodological bases regulation of integrated grain market and its products processing. Extended abstract of Doctor’s thesis. Odessa [in Ukrainian].