Private households: a disappearing remnant of the past or a way to the future

Hubert Cochet

Ekonomika, Journal for Economic Theory and Practice and Social Issues, 2018, vol. 25, issue 4

Abstract: The purpose of the article is to investigate the evolution of households in Ukraine, their role in national agricultural production and assess the economic efficiency of the activities of private households in comparison with large-scale agro-formations. Research methodology. In the research process there have been used such methods: scientific abstraction, logic, analysis and synthesis, generalization and systematization, scientific comparison. Research results. As a result of the comparison of private households and large agricultural enterprises that are located within the same administrative-territorial unit, it has been determined that large farms specialized on cereals have a large area of agricultural land, powerful machinery. They are export-oriented, performing only 40% of net added value and being ineffective in terms of creating jobs and benefits per hectare. Nevertheless, private households, not having such material and technical assets per hectare, remain more efficient, while often valorizing land with low agronomic potential. Elements of scientific novelty. Scientific novelty of the article lies in the fact that despite the political system and the economic development course in the country, private households are always adapting to any conditions, looking for ways to increase their profits. Owners of households have a high level of knowledge in animal husbandry and plant growing. Incomplete land reform and the lack of appropriate agricultural technical equipment are among the main problems hampering the more efficient functioning of households in the population. Practical significance. Completing of the land reform, solving the problems relating to private households and promotion of their development by the state, will not hamper the development of large-scale agro-formations. Considering small economic costs, this will significantly develop the agricultural sector of Ukraine. Tabl.: 1. Figs.: 1. Refs.: 18.

Keywords: Consumer/Household; Economics (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:ags:sereko:411521

DOI: 10.22004/ag.econ.411521

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