Structural modeling of the financial support for the Ukrainian agrarian sector

  • Received June 22, 2018;
    Accepted August 13, 2018;
    Published September 6, 2018
  • Author(s)
    Lyudmyla Katan ,
    Olena Dobrovolska
    ORCID Researcher ID , José Manuel Recio Espejo
  • DOI
    http://dx.doi.org/10.21511/imfi.15(3).2018.17
  • Article Info
    Volume 15 2018, Issue #3, pp. 199-211
  • TO CITE АНОТАЦІЯ
  • Cited by
    5 articles
  • 1072 Views
  • 147 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Financial support for the agrarian sector is the priority of economic policy in many countries of the world, as it plays a key role in achieving the goals of sustainable development, in particular poverty reduction, food security, environmental improvement, including reducing CO2 emissions, reducing water pollution, etc. In the main, the financial support for the agrarian sector of the various countries is multi-channel and combines budget financing and financial market opportunities. At the same time, for many countries, including Ukraine, the issue of the ratio of these sources of financing and their influence on the development of agricultural production remains unresolved. The analysis of budget financing has shown a lack of stability in the implementation of financial support programs for the agrarian sector of Ukraine, which affects the financial sustainability of enterprises and their ability to attract market financing. In the article, using the structural modeling, the necessary amount of financing for the agrarian sector was determined through budget financing, bank lending and agro-insurance. The results of the calculations showed that the actual size of bank lending to agrarian enterprises is significantly lower than the simulated values. At the same time, budget financing creates conditions for ensuring financial sustainability of agrarian enterprises and encourages them to use bank lending, while increasing budget financing reduces the need for agro-insurance operations, which is a negative consequence of its use.

view full abstract hide full abstract
    • Figure 1. The structural modeling formation
    • Figure 2. Regression relationships between latent variables for the first model, where ZETA1 and ZETA2 are the residuals
    • Figure 3. Regression relationships between latent variables for the second model, where ZETA2 and ZETA3 are the residuals
    • Figure 4. Overall view of the structural equations model for both cases
    • Figure 5. Dynamics of changes in the real and simulated levels of lending to agriculture as to public sector financing
    • Figure 6. Dynamics of changes in the real and simulated levels of agricultural insurance as to public financing of the sector
    • Table 1. Funding allocation for agriculture in Ukraine during 2009–2017
    • Table 2. Results of structural modeling of the indices relationship for the overall situation in agriculture, state and non-state financing, i.e., lending
    • Table 3. Results of structural modeling of the indices relationship for the overall situation in agriculture, state and non-state financing, i.e., agro-insurance
    • Table 4. Simulated values of non-state financing of Ukrainian agriculture in terms of sector lending and agro-insurance
Related Articles

  • Impact on poverty and income inequality in Malaysia’s economic growth

    Rabiul IslamORCID Researcher ID, Ahmad Bashawir Abdul Ghani , Irwanshah Zainal Abidin , Jeya Malar Rayaiappan doi: http://dx.doi.org/10.21511/ppm.15(1).2017.05
    Problems and Perspectives in Management Volume 15, 2017         Issue #1         pp. 55-62 Views: 12038 Downloads: 5746 TO CITE АНОТАЦІЯ

    Poverty and income inequality are extreme issues that still exist in Malaysia. Any rise in poverty and income inequality definitely affect economic growth. There are many great efforts taken by the government of Malaysia to eradicate poverty and to reduce the gap of income inequality which occurs since 1970’s. The incidence of poverty and income inequality is higher in rural areas compared to urban areas. This paper is mainly to study the level of poverty and income inequality in Malaysia together with government intervention to develop Malaysia’s economic growth. The research is focused among the working people at Ipoh, Perak. In this paper, questionnaire forms are being distributed to get information regarding the issue of poverty and income inequality. It also looks into the strategies taken by the government of Malaysia to eradicate poverty and income inequality. Few recommendations are given in terms of education policy, financial aid and assistance from government and non-government organization (NGO) to upgrade the standard and quality of living among the poor and lower-income group of people.

  • Impact of inflation on economic growth: evidence from Nigeria

    Anthony Olugbenga AdaramolaORCID , Oluwabunmi Dada doi: http://dx.doi.org/10.21511/imfi.17(2).2020.01
    Investment Management and Financial Innovations Volume 17, 2020         Issue #2         pp. 1-13 Views: 9348 Downloads: 5625 TO CITE АНОТАЦІЯ

    In an attempt to examine the influence of inflation on the growth prospects of the Nigerian economy, the study employs the autoregressive distributed lag on the selected variables, i.e. real gross domestic product (GDP), inflation rate, interest rate, exchange rate, degree of economy`s openness, money supply, and government consumption expenditures for the period 1980–2018. The study findings indicate that inflation and real exchange rate exert a significant negative impact on economic growth, while interest rate and money supply indicate a positive and significant impact on economic growth. Other variables in the model depict no influence on the economic growth of Nigeria. The causality result shows the unidirectional relationships between interest rate, exchange rate, government consumption expenditures and gross domestic product. However, inflation and the degree of openness show no causal relationship with gross domestic product. As a result, the study recommends that a more pragmatic effort is needed by the monetary authorities to target the inflation vigorously to prevent its adverse effect by ensuring a tolerable rate that would stimulate the economic growth of Nigeria.

  • Formalization of the impact of imbalances in the movement of financial resources on economic growth of countries in Central and Eastern Europe

    Serhiy KozmenkoORCID , Maxim KorneyevORCID Researcher ID doi: http://dx.doi.org/10.21511/afc.01(1).2017.06
    Accounting and Financial Control Volume 1, 2017         Issue #1         pp. 48-58 Views: 7973 Downloads: 1381 TO CITE

    The article deals with the impact of financialization on economic growth in countries of Central and Eastern Europe. It determinesthe impact of imbalances in the movement of financial resources caused by financialization on economic growth of these countries. It proves that the implementation of measures aimed at increasing the openness of the economy and maintaining solvent demand have a positive impact on economic growth of the surveyed countries in the long run. It also proves the importance of developing a set of measures of strategic nature regulating imbalances in the movement of financial resources caused by financialization.

Download Preview
Close
Investment Management and Financial Innovations
Investment Management and Financial Innovations