Investment Attractiveness of Agriculture in Contemporary Conditions

Abstract

In Russia, agriculture is one of the sectors that have shown steady growth in production volumes over the past 20 years. This is partly due to the catastrophic decline in agricultural production at the end of the 20th century. Thus, a return to normal production level is perceived as growth. The development of the industry was also influenced by the introduction of restrictions on importing agricultural products. However, the growth in production volumes is not accompanied by an increase in investment, which casts doubt on the long-term positive trend. This paper reveals the essence and content of the investment attractiveness of the agricultural sector of the economy. The authors considered the investment attractiveness as the result of the analysis of the main economic, social, and political parameters of territorial production systems by a potential investor. Therefore, the authors revealed a connection between investment activities in the agricultural sector of the economy and the specifics of the intra-industry location of production, regional specialization, current state policy in relation to agricultural producers and rural areas, and the manifestation of the investment multiplier effect. The study established that the state’s investment policy in Russian agriculture should take into account the need to compensate for the reduction in economic resources available for the sector to increase agricultural production. At the same time, special attention should be paid to investments in the development of information, social, and labor resources involved in agricultural production.