The Sectoral Approach to the Analysis of the Effectiveness of Agro-industrial Integration in the Context of Innovative and Sustainable Development of the Agricultural Sector

Abstract

In the modern agro-industrial production of many countries, one of the leading trends is the consolidation and integration of economic entities. Therefore, an important task of agroeconomic science is the justification of methodological approaches to the analysis of the effectiveness of integration processes. The paper focuses on the developed methodology for assessing the effectiveness of the integrated formation of the agro-industrial complex, which is based on a sectoral approach to the location of organizations within it. The proposed methodology makes it possible to identify the economic performance of the current financial and investment activities of the integrated formation as a whole, as well as of individual sectors and enterprises that are part of it. In contrast to the existing approaches, the authors propose to use both private and general performance indicators of current financial and investment activities, presented in the form of coefficients for individual enterprises, sectors, and integrated formation as a whole. The paper provides a phased assessment of the effectiveness of the functioning of two integrated formations before and after the integration process. As a result of applying the proposed methodology, it was revealed that the process of integration has a different impact on the economic performance of different activities of integrated formation, which may be caused by the size of investment in the modernization and expansion of production capacities of enterprises of the sectors of production and processing of agricultural raw materials.