Enabling Favourable Investment Climate in the Leading Agrarian Sector of the Ukrainian Economy

Анотація

The agrarian sector now represents the leading engine for the development of the national economy that provides a significant contribution to the GDP, over 40% of foreign exchange earnings, as well as food security of the state. At the same time, the lack of stable positive dynamics of production in the agrarian sector indicates the exhaustion of the reserves of the current model of its development, based on the scale effect and extensive methods of resource use. This happens due to the characteristics of investment activity in the agricultural sector that impacts on the reproduction and efficiency of agricultural production. The attractiveness of the agrarian sector in Ukraine is influenced by several factors, most notably favorable natural and climatic conditions for cultivation of the agricultural crops, high natural resource potential of the soil, cheap labour force, convenient geographical location and well-developed transport infrastructure, and last but not least the growing profitability of agribusiness. In addition, improvement in the investment climate in the agrarian sector was promoted by a well-balanced agrarian policy aimed at corrigation of the national legislation in accordance with the standards imposed by the Association Agreement between Ukraine and the EU as well as favorable conditions for doing business and positive changes in tax legislation. At the same time, investments are one of the most important means of introducing modern technologies in agricultural production, increasing the competitiveness of domestic agriculture. Considering the fact that today's agrarian sector is one of the leading sectors of the national economy, state agricultural policy should be aimed at improving the institutional environment in the direction of simplification of investment activity, and protection of investors' rights.

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