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The main causes, factors and preconditions of the development of agrarian export industry in Ukraine

Author(s) Pitel N. Y., PhD in Economics, , Uman National University of Horticulture
Category Economics
year 2019 issue Issue number 95. Part 2
pages 128-151 index UDK 339.564:631.1
DOI 10.31395/2415-8240-2019-95-2-138-151 (Link)
Abstract In this research the preconditions and the most important factors which affect the development of Ukrainian agrarian industry concentrated on exports are studied. The dynamics of trade of agricultural goods and services to abroad prom the point of Ukraine is analyzed. Here you can find an investigation of the main reasons which complicate the usage of the export’s potential of the country. The preconditions of the development are determined as well as the preconditions of the successful stimulation of exports. The existence of the strong correlation between the development of export sector of agrarian industry in Ukraine and the micro-level regulations and the government policies at the same time is proven. The actual geopolitical location of Ukraine is still very problematic; moreover the “perfect competition” condition in the world involves more and more firms. The government doesn’t stimulate any exports in this industry. The analysis of overall exports of Ukraine shows some negative tendencies. For the period from 2014 to 2018 the overall exports have fallen by 6.6 billion of U. S. $, while the overall import level has grown by 2.7 billion $. At the same time the inverse tendency is founded for the export of agrarian goods and services. During the mentioned period of time the agrarian sector has managed to increase by 2 billion $ its exports, and to reduce imports by 1 billion $. The research about the type of exported goods resulted in that dominating ones have the lowest value added, or even pure resources. The existing government policy doesn’t stimulate exports in Ukraine at its best. The main reasons are: unfair macro-economical situation, the uncertainty on the government level, non-effective exports regulations, confiscating tax system and not good enough regulated loan system in the banking sector. The main preconditions of the development of the agrarian industry in Ukraine are: comfortable geographical location, an attractive climate, fertile black soil, good natural resources, well-educated and professional human resources, relatively high level of the development in this industry, a developing logistics services and some important movements in fundamental for agriculture in general scientific investigations. Although the potential is high, only a few of the preconditions mentioned are used. Currently, the exports are very dependent on the mixed economical system what dominates in the country. So, the improvements are needed from both sides – on the micro-level and from the government side (macro-level). Such a strategy of combination of factors of the development of exports of agricultural industry will help to find the equilibrium to apply new changes so all advantages available would be in use and the risks correlated would be minimized. In the future researches it is important to pay much attention to the ways, methods, mechanisms and instruments of a perspective development of agricultural industry’s exports in Ukraine.
Key words export, export activity, potential export, export mechanisms, agricultural industry.
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