Economic interpretation of sustainable development of the flax complex

Abstract

This paper reviews the definition of the notions “stability” and “stable development”, and analyzes the factors influencing the development stability. We suggest the definition of the flax complex stable development and its assessment. We also examine the factors causing the flax complex functioning instability. An integral index was proposed to determine the stability of flax complex; this index takes into account the rate of growth (or decline) of major products manufacturing, commodities, profits from product sales, accounts receivable and accounts payable, investments into fixed capital, labor productivity, coefficient of manufacturing capacity utilization and updating of the basic funds. The paper deals with the problems of its development and modern state of flax sub-complex of agroindustrial complex, as well as with the matters of disproportions between the complex’s branches. It covers the causes of tolling schemes of flax processing businesses work and the role of the state in native market of flax products formation. The necessity of industry diversification and innovation development is substantiated.