ATTRACTING INVESTMENTS FROM THE WORLD BANK AND THE INTERNATIONAL FINANCE CORPORATION INTO AGRICULTURAL PROJECTS IN UKRAINE IN THE CONTEXT OF A TRANSFORMATIONAL ECONOMY

Olena Yatsukh

Dmytro Motornyi Tavria State Agrotechnological University

olenayatsukh.tsatu@gmail.com

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Abstract

Investment is a key factor in the development of the agricultural sector, ensuring technological modernization, expansion of production, as well as support for operational activities. The aim of the study is to assess the impact of credit and investment support on the level of labour productivity in the agricultural sector of Ukraine. The study employed regression analysis, structural analysis, content analysis, and descriptive methods. The study confirmed that capital investments give the greatest return in the structure of credit and investment support for agriculture in Ukraine. According to the regression results, the capital investment variable turned out to be the only statistically significant one, along with foreign direct investment, state support, and bank loans. One thousand hryvnia (?) increase in capital investment leads to an increase in productivity by ?0.6395 thousand. With the exclusion of capital investment from the model, the bank loans variable becomes statistically significant. Such a modified model showed that an increase in the volume of bank loans by ?1,000 thousand entails an increase in labour productivity in the agricultural sector by ?0.977 thousand per employee. The study also found that about 94% of capital investments are financed from own sources, and only 4.2% of bank loans go to capital investments. Analysis of projects of the World Bank and the International Finance Corporation (IFC) showed that they cover investments in both agricultural development and working capital, which meets the needs of the sector. The results of the study can be used by the governme


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