Economic analysis for urbanization impact on food and processing companies use case of Ukraine

Abstract

The paper is devoted to studying the economic and social connections between the urbanization process and agricultural land use in Ukraine. It is worth noting that both urbanization and agriculture require new lands for their future development. The important part of this connection is ecology and effective use of the available resources, as well as land use in the context of urbanization. After all, the process of urbanization can have a significant negative impact on the state of land resources. The research work determines which economic factors of urbanization are the most relevant to the land use in city suburbs and agricultural regions. The article introduces the notion of economic feasibility of land use by purpose and studies cases of food and processing companies. Food and processing industries were chosen as the main research subjects since they are the most promising fields for the future economic development of each individual region and country as a whole. These industries are centered around both import and export, besides producing added value products. Cities without a doubt are the main consumers of food products and at the same time, they drain labor resources from the countryside. In this research work, we studied the global situation in Ukraine, how 21-century urbanization has affected the agricultural sector in the country. This sector has experienced rapid growth in past decades, as opposed to industrial and manufacturing sectors, and increased the national wide level of land use. While the national wide level of urbanization might not be the highest in modern history (20th to 21st century), it continues to have a wide impact on the national economy. The scope of this impact falls outside of this research work as it consists of multidimensional data and a wide range of interdependencies, including policies and regulations. Research models require a large amount of data and cases, that’s why we focused on the food and processing sector in this paper. They proved to be a good test ground to study the urbanization impact patterns as well as make economical modeling more convenient. In this context, the peculiarities of land use models were studied, as food and processing industries use land resources, can be located both inside the city, suburban area, or in remote farmland region. It is evident that cities and businesses form large supply and demand of natural resources, labor, and financial investments.