Investment expenditures in Ukrainian agricultural enterprises: prognosis and development of appropriate investment strategy

Abstract

Increasing the level of innovation and investment support for agricultural enterprises is particularly relevant. This enables them to function effectively in a dynamic, open environment. Thus, the main purpose of the paper is to characterize the current state and sources of investment expenditures in agricultural enterprises in Ukraine, and to make predictions on the inflow of investments in the agricultural sector in the future. Basing of this prognosis the recommendation of the appropriate steps towards investment strategy development in farming firms was formulated. ARIMA forecasting method was used in the article to determine the future expenditures for investments in Ukrainian agricultural sector. It was observed that there has been an inflow of investments in the area of Ukrainian agriculture in recent years. Additionally it was forecasted that this growth will continue in the future. Different scenarios tested showed an increase from 11 to 30% in 2019. Additionally companies could attract and utilize the FDI funds, which unfortunately decreased during the period 2015-2017 in agricultural sector. It could be however expected that these trend will revert together with changing political and economic situation of Ukraine, and companies could use this resources for their development.