Baltic Journal of Economic Studies (Nov 2016)
INVESTMENT POLICY OF UKRAINE IN THE AGRICULTURAL SECTOR
Abstract
The aim of this article is a study of features of investment politics of the state in the agrarian sector of economy, determination of basic problems of bringing in of investments and grant of suggestions how to form the investment politics in the agrarian sector of economy in Ukraine. One of the issues in agrarian sector of economy development in Ukraine is providing of agriculture necessary financial and material resources the basic source of that are investments. Presently Ukraine is in an investment crisis that is characterized by the decline of investment activity of management subjects because of the low level of investor’s activity. Reason of that is an unfavourable investment climate in a country that was appeared because of unstable position of country and risky economic position. Agriculture is a food industry of national economy her state depends on the facilities inlaid in her development, namely – from intensity of investment activity. Exactly active government investment activity in an agrarian sector is the mortgage of his stable development and effectiveness. Research methodology consists, that the reason of agricultural production crisis, foremost, because of government control and agroindustrial complex support weakened role. In the developed countries, vice versa, the value of state support of agroindustrial complex increases. Charges on agrarian politics realization as a line and indirect support grow constantly, as it demonstrates the hands-on experience in EU. The general chart of government control of investing terms levers in the agrarian sector of economy is certain by us. The results of research is showing that an important condition necessary for private capital investments (both foreign and domestic) is a permanent and well-known set of the norms and rules, set in the way that potential investors could understand and foresee that these rules will be used to their activity. Practical value is certain by success of investment projects that depend on the openness of government and local self-government bodies, from a dialogue with public and productive sphere (agribusiness). A value/originality. Research results allow defining basic obstacles in bringing in of investments in the agrarian sector of economy in Ukraine. Showing up: the high risks, related to the specific of agriculture (climatic terms, duration of productive process), ecological aspect and economic situation in a country on the whole; subzero investment attractiveness of industry and agrarian enterprises, undeveloped infrastructure; high level of lending rates of commercial banks; unwithstand politics of state interference and adjusting, does not add the confidence for potential investors.
