Abstract
Ukraine's agricultural sector accounts for 17% of the country's GDP and is continuously growing. For six consecutive years (2013-2018), Ukraine harvested over 60 million tons of grain annually, and 2018 export of ag commodities reached $18.6 billion. (State, 2020). The anticipated land reform envisions lifting the moratorium on the agricultural land sale, which should encourage capital investments in ag. The article analyzes the trends of investment opportunities in the Ukrainian ag sector for the last decade. The regression analysis of labor productivity with variables of fixed capital-worker ratio and yield of grain confirmed that the function of labor productivity depended on the value of fixed capital per worker. As the U.S. investment in ag machinery export to Ukraine plays a significant role, we evaluated its effect on the current level of labor productivity in the Ukrainian agribusiness, comparing it with the U.S. farming outcome.
Highlights
Increasing labor productivity in agriculture and reducing the time needed for food production build up the foundation for economic growth, for the steps of society to a higher level of socio-economic progress
The crucial role of productivity growth in agriculture to achieve the goals of sustainable development (Resolution of U.N. (2015) "Transforming our world: the 2030 Agenda for Sustainable Development") was announced by experts of Outcome of foreign investment on labor productivity in agriculture
An assessment of labor productivity in agriculture in Ukraine and at agricultural enterprises was done for three years (2015, 2016, and 2017) due to the significant fluctuations in production output and the national currency exchange rate. (Table 5)
Summary
Increasing labor productivity in agriculture and reducing the time needed for food production build up the foundation for economic growth, for the steps of society to a higher level of socio-economic progress. The crucial role of productivity growth in agriculture to achieve the goals of sustainable development (2015) "Transforming our world: the 2030 Agenda for Sustainable Development") was announced by experts of Outcome of foreign investment on labor productivity in agriculture. "Increase productivity, employment and value addition in the food system" as the first significant area as proof of 20 actions have been offered (FAO, 2018) to integrate three dimensions of sustainable development – economic growth, social inclusion, and environmental protection. The increase of labor productivity in agriculture is necessary to reduce the imbalance between the share of agricultural inputs in gross value added and employment in this sector of the Ukrainian economy. Analysis of the dynamics of investment and labor productivity will assist in specifying the trends, relationships, and factors of influence on these processes during the macroeconomic crisis
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