Economics and management of enterprises

Structuring of sources of attracting capital to agricultural production as a prerequisite for the formation of an effective investment mechanism in the agricultural sector

Economic Annals-XXI

Economic Annals-ХХI: Volume 159, Issue 5-6, Pages: 29-33

Citation information:
Novak, I., Verniuk, N., & Novak, Yu. (2016). Structuring of sources of attracting capital to agricultural production as a prerequisite for the formation of an effective investment mechanism in the agricultural sector. Economic Annals-XXI, 159(5-6), 29-33. doi: https://doi.org/10.21003/ea.V159-06

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Inna Novak
PhD (Economics),
Associate Professor,
Uman National University of Horticulture
1 Institutska Str., Uman, 20305, Ukraine
novakinnam@gmail.com

Nataliia Verniuk
PhD (Economics),
Associate Professor,
Uman National University of Horticulture
1 Institutska Str., Uman, 20305, Ukraine
vernata77@mail.ru

Yuriy Novak
PhD (Agriculture),
Associate Professor,
Uman National University of Horticulture
1 Institutska Str., Uman, 20305, Ukraine
yuriy-novak@bigmir.net

Structuring of sources of attracting capital to agricultural production as a prerequisite for the formation of an effective investment mechanism in the agricultural sector

Abstract. The Ukrainian agricultural sector suffers a sharp lack of financing which has negative consequences and is followed up with technical and technological backwardness and a decreasing level of competitiveness.

The authors substantiate the necessity of the formation of an effective investment mechanism which should be based on the optimum combination of sources of domestic and foreign investments. The article deals with a structural and logical scheme of determination potential sources of investment capital in the agricultural sector of Ukraine. A negative trend in public funding which resulted in negative consequences for the Ukrainian village and the relevant infrastructure, as well as the development of depressed areas is revealed.

The authors emphasise on loan problems and note the importance of the development of domestic corporations in the agricultural sector. Relations with international financial organisations, the leading role of which belongs to the International Monetary Fund, the World Bank (the largest share in the distribution of credit resources is owned by the International Bank for Reconstruction and Development) and the European Bank for Reconstruction and Development are analysed. As a result of the conducted analysis, it is recommended to attract alternative sources of investment in the agricultural sector, as well as funds of institutional investors and multinational corporations.

The authors have proved a need to work out an economic and mathematical model that will select the best source of investment to achieve the optimal production outcomes and develop the social sphere with regard to characteristics of the investee.

Keywords: Agricultural Sector; Agriculture; Sources of Funding; Investment; Institutional Investors; Investment Mechanism; Ukraine

JEL Classіfіcatіon: G31

DOI: https://doi.org/10.21003/ea.V159-06

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Received 14.04.2016

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