THE INFLUENCE OF THE INSTITUTIONAL ENVIRONMENT ON DEVELOPMENT OF INVESTMENT ACTIVITY IN THE AGRICULTURAL SECTOR OF THE ECONOMY

Relevance of the research topic. In the conditions of transformation, a special role in the formation of a favorable institutional environment for the intensification of investment activities in the agricultural sector is given to the state as an important institution for the organization of the process and its participants. Formulation of the problem. The relationship of investment activity with the processes of institutional transformation is still poorly studied in economic theory due to the novelty of this process and are systemic in nature. Here, a significant role is played, first of all, by the institutional features of the formation of a favorable investment environment in the conditions of deepening transformation and integration processes in the state. For the transformational economy, the system of economic property relations is an urgent problem, in particular, for the agricultural sector – it is land ownership. A special study of investment activity in the context of deepening transformation processes in the national economic system requires consideration of two aspects of this process: the need and principles of adaptation of investment institutions as carriers of another institutional tradition to the market environment; study of those positive institutional effects of direct investment, which contribute to the acceleration of institutional transformations, the adaptation of world "institutional standards" to national conditions. To study the theoretical and practical aspects of the relationship between structural and institutional transformation with the organization of the investment process in the agricultural sector. Conclusions according to the article. It should be noted that according to the methodology of the system approach, investment activity has all the hallmarks of a system that is developing dynamically and is influenced by external and internal institutional environment. The development of Ukraine's economy in the conditions of deepening transformation and integration processes is characterized by increasing influence of uncertainties and risks of the modern institutional environment in which investment activities are carried out not only by national but also foreign investors. Increasing the degree of uncertainty of the investment process in the transformation of the national social and economic system is due primarily to the fact that in the transition to market relations remain institutions and institutions inherited from the previous economic system, and market institutions are not yet formed or poorly functioning. Also, the development of the investment process is influenced by the constant change of the economic situation and the situation and competition in the investment capital market, the introduction of new technologies and methods of organizing the production process, and so on. Thus, institutionalism is a productive direction in the development of investment activities.