Baltic Journal of Economic Studies (Nov 2016)
AGRICULTURAL ENTERPRISES PRODUCTION EVALUATION AND DEVELOPMENT IN UKRAINE
Abstract
The purpose of the article is to analyze correlation between production volume (V), labour factor (L) and capital factor (K) with further production volume forecasting of researched agricultural enterprises in Ukraine as well as their competitiveness in the European market. Methodology. The survey based on statistical data of State statistics service in Ukraine, Poland and accounting data of investigated enterprises during 2004-2013 years. Production volume and capital amount taken in monetary terms, labour factor is calculated in monetary terms using the average wage and the number of employees. Treatment of major production factors according to classical economic theory is generalized. Correlation of V, L and K factors are calculated using method of the least squares in production function evaluation. Production volume of enterprises A and B are forecasted with further evaluation of its reliability in the econometric program EViews 7. Results of the survey showed the dominant role of L factor over the K factor especially after world economic crisis 2008 in investigated agricultural enterprises of Ukraine. According to high determination coefficient, the influence of both factors on production volume is 85% for enterprise A and 95% for enterprise B. Production forecast shows the increase of its volume till 2020 in both enterprises with high probability according to forecast credibility indicator MAPE. Practical implications. Application of the results, in particular the ratio of production factors and forecast of production volume, will allow more effective use of production resources and better planning of production process taking into account market conditions. Value/originality. Production activity estimation and output forecast of investigated agricultural enterprises were used for competitiveness analysis of agricultural enterprises in Ukraine and Poland, which is important for European integration process of domestic economy.
