THE IMPACT OF THE DEVELOPMENT OF THE INSTITUTIONAL ENVIRONMENT ON COMPETITION IN CONSTRUCTION

Анотація

Theoretical preconditions and practical approaches to determining the influence of the institutional environment on market competition in construction are analyzed. The CR-3 concentration indicator was chosen as a measure of the competition level in the primary real estate markets, and the indicators of the institutional environment development were chosen as factors, as it often determines the behavior of firms in the market. The aim of the article is to analyze the impact of the institutional environment development on the indicators of concentration of housing markets. Research methods. Correlation-regression analysis of the influence of a number of factors that directly or indirectly describe the institutional environment development in the regional markets of Ukraine on the resulting indicator - the market concentration ratio CR-3. Results. The concentration of housing construction markets in different regions of Ukraine is studied on the basis of data on sales of square meters of newly built housing in different markets. Quite a high level of competition is in Kyiv, Lviv, Odessa, Zhytomyr region. Among the analyzed regions, the fewest companies are engaged in construction in Kirovohrad, Mykolaiv, Kherson, Sumy and Cherkasy regions. Other regions have a moderate level of concentration and an average level of developers’ activity in the primary housing markets. It is determined that the development of competitive relations in regional housing markets is influenced by the following factors: the percentage of united communities in their total planned number; the number of cities that have received authority for arch-building control; introduction of the institute of elders (share of the plan); number of funds to support investment and innovation activities; number of administrative service centers; infrastructure facilities created with the participation of local authorities. Conclusions. It is revealed that one of the reasons for high market concentration and almost no competition in regional housing markets is the lack of institutional support for housing develop-ment, the presence of high administrative, economic, technical, organizational barriers to market entry, which is reflected primarily in high transactional levels, costs for developers, both during the entry into the new market and during the periods of its development and further functioning. Key words: competition, concentration, institutional development, construction, correlation-regression analysis.

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