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№ 10/2019

№ 10/2019

Fìnansi Ukr. 2019 (10): 23–37
https://doi.org/10.33763/finukr2019.10.023

FINANCIAL AND ECONOMIC REGULATION

LEMISHKO Olena 1

1National University of Life and Environmental Sciences of Ukraine
OrcID ID : https://orcid.org/0000-0002-6216-652X


Model instruments of financing capital reprodution in the agrarian economy sector


A model toolkit for financing the reproduction of capital in the agrarian sector of the economy is developed in the article, taking into account the European integration vector of Ukraine. The necessity of choosing the proportions of financial support for the reproduction of capital and strategic guidelines for achieving sustainable economic growth at the macro level is substantiated. The dynamics of the formation of the rate of the net profit and investment coefficient in the agrarian sector are determined. It is proved that the average rate of the profit margin of the enterprises in agriculture, forestry and fisheries of Ukraine is much higher than the average for the EU countries, while the investment ratio is much lower than in these countries. The marked dynamics of growth of the rate of return and reduction of the investment ratio significantly deepens the structural imbalances between Ukraine and the EU. It is substantiated that the excessively high rate of profit of enterprises of the agricultural sector of the economy is determined not by the efficiency of agricultural production but also by structural defects – by the low share of expenditures on wages and consumption of fixed capital. The low value of the investment ratio reflects the lack of real sources for the accumulation of fixed capital in the industry when existing reserves are channeled to replenish the need for working capital. The block diagram of forecasting the volumes of state support for the processes of extended reproduction of fixed capital in the agricultural sector of the Ukrainian economy for the medium-term budget planning period are formed. Estimated amounts of state support for farmers under two scenarios are calculated: pessimistic and optimistic. In the pessimistic scenario, it is argued that, with minimal funding from both own and borrowed funds, substantial amounts of government support are needed to ensure widespread reproduction of fixed capital in agriculture. At the same time, financing for the years of the medium-term budgetary planning period at the expense of own sources is 10% of the gross value added of the respective year; at the expense of credit – 1.5% of the gross value added of the respective year; at the expense of other sources – 0.05% of the gross value added of the respective year. In the optimistic scenario, increased financing opportunities at the expense of own and borrowed funds will lead to a decrease in state support for the processes of extended reproduction of fixed capital in agriculture. According to the specified scenario, financing for the years of medium-term budgetary planning at the expense of own resources will be 18% of the gross value added of the respective year; at the expense of credit – 2.4% of the gross value added of the respective year; at the expense of other sources – 0.05% of the gross value added of the respective year. It is possible to achieving a sustainable trend of expanded capital reproduction in the agricultural sector of the economy only if the internal and external sources of the specified process are consolidated and agreed.

Keywords:capital reproduction, agrarian sector of economy, rate of return, investment ratio, model tools, financing, government support

JEL: G11, G17, G31


LEMISHKO O. . Model instruments of financing capital reprodution in the agrarian economy sector / O. . LEMISHKO // Фінанси України. - 2019. - № 10. - C. 23-37.

Article original in Ukrainian (pp. 23 - 37) DownloadDownloads :138
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