Economic dimension of digitization in rural areas

Abstract

Currently the agrifood sector is recognized to play a crucial role in the sustainable development of the world, as well as to be the main source of income and employment in rural areas. The economic sectors’ share in the structure of gross value added and employment level in urban and rural areas in Ukraine are analyzed. Based on this analysis, it is determined that agriculture remains significant for livelihoods and employment in the country. At the same time, as we are living in the Fourth Industrial Revolution, it is pointed out that agriculture itself will not be able to achieve sustainable growth, if not combined with technology. The publication aims to stress on the importance of digital technologies in agriculture to meet the needs of global population and maintain sustainable growth. To define the interrelation between technology and the agrifood sector in Ukraine the publication goes on to explore Ukraine’s performance according to the IMD World Digital Competitiveness Ranking and key drivers of Industry 4.0 in the country. The article focuses on such basic areas to identify the state of digital technologies in agriculture as economic, social and cultural, environmental ones. The attention is paid to the specifics of Digital Agriculture and key factors for the transition to digital farming in Ukraine according to the “Digital Agenda 2020”. Main benefits and challenges of digitization in rural areas are described. Mechanisms for the effective functioning of digital agriculture are shown.