The economic content of the processes of concentration of production and capital
Abstract. The largest corporations establish modern trends in the world order, penetrating into all spheres of national economic systems. This trend is determined by processes such as the concentration of production and capital. Being factors of economic development, the concentration of production and capital can be defined as determinants of economic development. However, today there is no unified approach to understanding the essence of these processes, which makes it difficult to study their impact on the socio-economic system of the state. The purpose of the study is to analyze theoretical approaches to the economic content of the processes of concentration of production and concentration of capital, as well as to determine their relationship. The formation and development of these processes are studied. The analysis of the approaches of the main economic schools and directions of political economy to the study of the processes of concentration of production and capital is carried out. According to the majority of foreign and domestic scientists, it has been determined that the purpose of the production concentration process is to increase the size of the enterprise or production volumes. At the same time, such attributes as the movement of factors of production, capital accumulation in the assets of the enterprise, and means of production are distinguished. Most scientists understand the process of capital concentration as the accumulation and capitalization of a part of surplus value. At the same time, the concentration of production is the result of an increase or expansion of the production factors, and the concentration of capital is the accumulation and capitalization of a part of surplus value. As a result of the analysis of the essence of the processes of concentration of production and capital, their relationship was established: the concentration of capital is a factor in the process of concentration of production. Based on the conducted retrospective analysis of the economic essence of the categories of concentration of production and capital, the author`s interpretation of these categories is proposed.
Keywords: concentration of production, concentration of capital, economic entities, globalization, corporation, TNK, economic category, economic system, factors of production.
Highlights:
- based on the historical approach, the economic content of the categories "concentration of production" and "concentration of capital" has been clarified;
- it is proved that the concentration of production occurs due to an increase or expansion of the factors of production, and the concentration of capital - due to the accumulation and capitalization of a part of the surplus value;
- it is determined that the concentration of capital is one of the factors of concentration of production.
Sergey V. Degtyarev, Andrey N. Khimchenko - Donetsk State University, Donetsk, Russia