Financial potential of sustainable development of the agrarian sector

Oksana Radchenko

Ekonomika, Journal for Economic Theory and Practice and Social Issues, 2019, vol. 26, issue 1

Abstract: The purpose of the article is to generalize the theoretical approaches to determining financial potential of the agrarian sector and substantiate its structure and components in terms of sustainable development strategies. Research methods. In the research process were used the following scientific methods: methods of financial theory (composition and decomposition) for determining a category of financial potential and its formation factors; the method of comparisons and statistical analysis for disclosure of the dynamics of potential and its components; formalization method for selection of indicators of potential assessment; the method of hierarchies for disclosure of the action mechanism for subjects in the agrarian sector; the method of expert assessments for adaptation of foreign experience. Research results. The composition and dynamics of financial potential of the agrarian sector of Ukraine were explored. Its definition as ability of the sector to ensure sustainable development was given due to aggregate of available real and potential resources, as well as conditions created by the state for their formation, distribution and redistribution. Development forecast for the analysed category was determined and it was established that the most stable possible growth can be realized through increasing in financial market services and financial resources of agrarian enterprises, and less stable would be the one supported only through financial state support. At the same time, the growth of all of these sources occurs mainly due to inflation-speculative factors, and not the increase of resources. Elements of scientific novelty. Within the research framework, there were solved scientific tasks of setting a typology of financial potential dividing by components: resources of the financial and credit and budgetary systems, resources of enterprises, investments; generally formalized and logical methods for assessing and determining potential volume, including overseas, list of key indicators of monitoring; specified institutional components for formation of financial potential. Practical significance. Proposals to refine a category of financial potential, systematize approaches to its definition and assessing for the agrarian sector will contribute to solving the problem of effective management of financial flows at the state, sector and enterprise level, forecasting of optimal volume of capacity and regulation of influence factors, which will generally help to optimize financial provision of sustainable strategy development of the sector. Tabl.: 4. Figs.: 2. Refs.: 33.

Keywords: Land; Economics/Use (search for similar items in EconPapers)
Date: 2019
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