Investing as a prospect of agro-industrial complex development in Ukraine

new site

This site is no longer updated!
The new website of the magazine is located at https://visnyk.lnup.edu.ua/

 

Visnyk LNAU: Economics of AIC 2020 №27: 58-63

Investing as a prospect of agro-industrial complex development in Ukraine

Mahiiovych R., PhD
Lviv National Agrarian University
Ivanochko O., Senior Lecturer
Lviv Branch of Private Higher Education Establishment "European University"

https://doi.org/10.31734/economics2020.27.058

Annotation

This article focuses on the importance of investment processes, which influence the prospects of the country development and the national production conditions, the level of enterprises technical equipment and the economic welfare and well-being of the population. The peculiarities of agro-industrial complex investments, which are caused by specificity of agricultural production, are considered. The main reasons for the of the investment processes slowdown for agricultural business entities, most of which have low solvency and, correspondingly, low investment attractiveness, are identified. For potential investors, the low attractiveness of agricultural production is determined by the difficult financial situation of the vast majority of direct agricultural producers, narrow or no collateral, which are now only fixed assets with low liquidity due to high moral and physical depreciation. The analysis of capital investments distribution according to the types of economic activity, including in the agriculture field, has been done. The main risks of investment support of the agro-industrial complex of Ukraine are identified and disclosed. The development and positive dynamics of the agro-industrial complex depends directly on the search intensity and resources attraction in the long run at the regional and local levels. Thus, initiative rural communities, local self-government bodies, as well as small producers of agricultural products should be more actively involved in public-private partnerships. It is emphasized that in the countries with developed market economy, the investment process is characterized by a large share of attracted funds, among which loans occupy a significant place. Measures, aimed to stimulate investment in the agro-industrial complex, have been proposed.

Key words

investments, agriculture, investment activity, investment climate, agricultural investment problems, agricultural investment potential, AIC development

Full text

pdf

Link

  1. Agriculture of Ukraine: Statistical compilation. 2018. Kyiv: State Statistics Service, 2019. 402 p.
  2. Bezuhlyi M. D., Zubets M. V. Economic aspects of reforming the agrarian-industrial complex of Ukraine. Agroincom. 2011. № 4–6. P. 4–13.
  3. Bychykhin Ye. Attraction of foreign investments in agriculture of Ukraine on a partnership basis in the conditions of decentralization. Scientific research works of NAFM. 2017. Vol. 2. P. 132–144. https://doi.org/10.33763/npndfi2017.02.132 
  4. Concept of the State Target Program for the Development of the Agricultural Sector for the Economy for the Period up to 2020: Ministry of Agrarian Policy and Food of Ukraine. URL: http: // minagro.gov.ua (Last accessed: 23.01.2020).
  5. Dynamics of capital investment in the agrarian sector of the economy. URL: http://naas.gov.ua/ (Last accessed: 23.01.2020).
  6. Statistical bulletin: Capital investments in Ukraine. State Statistics Service of Ukraine. URL: http://www.ukrstat.gov.ua/ (Last accessed: 24.01.2020).
  7. The state of financing of AIC in 2018. URL: https://agro.me.gov.ua/en/ (Last accessed: 23.01.2020).
  8. Trakhanov I. P. Problems of investment support of agricultural enterprises of Ukraine and prospects for its development. URL: https://dspace.uzhnu.edu.ua/ (Last accessed: 12.01.2020).
  9. Vinichenko I. I. Amortization policy in the investment activity of the enterprise. Investment: practice and experience. 2007. № 8. P. 3–6.
  10. Volchanska L. V. Features of agricultural enterprises as an object of investment. Socio-economic problems of the modern period of Ukraine: [Coll. of scientific works] / the NAS of Ukraine. State Institution «Institute of Regional Research named after M.I. Dolishniy»; editors: Kravtsiv V. S. (executive editor). Lviv, 2016. Vol. 4 (120). P. 88–92.
  11. Yarmolenko Yu. O. Investments in sustainable development of agrarian production: state, problems and directions of their solution. Regional Business-Economics and Management. 2017. № 1 (53). P. 57–67.
титулка Агро