Abstract
The aim of this paper is to analyze the relationship between financial market development and agricultural sector in Uzbekistan. Research tries to answer these questions an empirical way and tries to clear questions in a role of financial development as also other variables in agrarian sector. Results of this research show that the financial market in agrarian sector has some weak places.
Highlights
The organization of agrarian business activity in general, and agricultural production in particular, depend on such factors particular, is depend conditioned by the fact that inputs are transmuted into outputs with considerable time lags, and that production and sale outcomes can be highly uncertain because of the changes of nature or of charged in commodity markets
Concluding this issue, we should remark that small farm business faces financial difficulties because of the high debt ratio used in the farms assets and because of the farms plans incomplete and farm insolvency
Uzbekistan possesses a favorable climate, to its allowing farmers to make a traditional clap and silks. It is the biggest in the world the exporter of a clap. These and other efforts have sustained healthy economic growth in agrarian sector in 1995-2010, noted by increase in a crop and the additional earth prepared for cultivation
Summary
The organization of agrarian business activity in general, and agricultural production in particular, depend on such factors particular, is depend conditioned by the fact that inputs are transmuted into outputs with considerable time lags, and that production and sale outcomes can be highly uncertain because of the changes of nature or of charged in commodity markets In such environment, possibility of the agricultural enterprises to make long-term investments, incur the calculated risks, and create the steady streams of consumption generated by a set of accessible financial tools and strategy capable to transform one sample of variable and uncertain inflows of a resource and outflows of another. The result is that many farms and rural households face serious limitations in obtaining essential inputs (feed, fertilizer, grounds, etc.) and selling their output (Swinnen, 2005) It is nearly the same for all post-communist transition economies when governments occured in the agricultural financial markets by establishing special agricultural credit institutions, advance guarantees schemes, and credit subsidies.
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