Genesis of corporations in the liberal model of market economy

Abstract

The article is concerned with studying of the history of corporations and the evolution of scientific and theoretical justification of the activities in corporate sector, the effective corporations’ structure and their importance for society and economy. The author emphasizes the importance of corporations in the economy in the context of interaction between state and market. The purpose of the article is to study the evolution of theoretical approaches to determining the place of the corporate sector in the liberal model of market economy. The methods of comparative studies and the problem-personified approach to the study of the history of economic ideas are used. Based on the historical and economic generalization of corporate sector’s activities in the twentieth century, the main stages of evolution of the importance of corporations in the economy are determined. The results of the study give a description of the main stages of formation of corporations during which their role in the economy evolved in response to changes in the economic environment. The dual nature of the influence of corporations on economy and society in a free market is determined, which consists in ensuring economic growth and accelerating technological progress as opposed to the negative effects of monopoly. It is established that the need to minimize the impact of destructive factors and strengthen the driving factors of the corporate sector contributed to changes in the relationship between state and market with the strengthening of state regulation of the economy. The results of research are important for understanding the need to create such conditions for the functioning of the corporate sector, which would ensure the most efficient use of corporate opportunities for society.