Production as a link in the market of agricultural machinery for crop farming in Ukraine

Yaroslav Navrotskyi and Vadym Petrov

Ekonomika, Journal for Economic Theory and Practice and Social Issues, 2023, vol. 30, issue 5

Abstract: The production of agricultural machinery and equipment in Ukraine is one of the main sources of supplying the market with resources and facilities for agricultural production, but as of 2023, it does not fully meet its needs. According to the relevance of the subject matter, the purpose of the study was to investigate the trends in the development of the agricultural engineering industry in Ukraine in dynamics, the impact of military operations on it, and to work out effective ways to overcome their negative consequences. The following methods were used: dialectical, statistical and economic, graphical, index, correlation and regression analysis, empirical, comparative analysis, analytical forecasting, abstract-logical, etc. The principles of regional placement of agricultural engineering enterprises are defined, depending on the availability of raw materials, energy and labour resources. The structure of enterprises in the industry by category is determined – most of them are small enterprises (85.8-91.5%), but the majority are employed by medium-sized enterprises (59.1-79.3%). Due to military operations, the number of active enterprises in the industry has decreased by about 30 units. The trend of reducing the production of tractors, combine harvesters, and some types of tillage machines in Ukraine and the reasons for its occurrence are revealed. The prospects of production of sowing equipment in Ukraine are substantiated. The index of identified comparative advantages of different countries by individual types of machinery is analysed, and it is found that in Ukraine only tillage machinery has a high level of advantages – 1.802 and has optimistic prospects for development. The paper defines a close correlation between the export and production of tractors in Ukraine in 2010-2021 (the corresponding correlation coefficient – 0.8982). Problems that hinder the development of the agricultural machinery industry are identified: inflation, disruption of logistics links and loss of suppliers, high prices for energy resources, etc. Recommendations for overcoming them are proposed: creating favourable investment conditions; implementing protectionist customs and tax policies for industry enterprises; evacuating them from the war zone. The proposed measures will contribute to the restoration, preservation, and progressive innovative development of the potential of agricultural engineering un Ukraine

Keywords: Industrial; Organization (search for similar items in EconPapers)
Date: 2023
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