Published since September 1958

№ 6/2019

Ekon Ukr. 2019 (6): 39–53https://doi.org/10.15407/economyukr.2019.06.039

QUESTIONS OF THE DEVELOPMENT OF AIC

УДК 339.92: 338.43

¹Institute for Economics and Forecasting of the NAS of Ukraine, Research ID : http://www.researcherid.com/rid/
OrcID ID : https://orcid.org/https://orcid.org/0000-0002-2109-9308

TRANSNATIONALIZATION OF THE AGRARIAN SECTOR: KEY FEATURES OF THE PROCESS

The main trends of the process of transnationalization of the agrarian sector of the economy are revealed. It is shown that the global agribusiness value chain includes agricultural TNCs themselves, as well as TNCs serving agricultural activities and related activities (supplies of agricultural machinery, equipment, seeds and fertilizers, processing, retail and wholesale). The activities of TNCs in the agrarian sphere are increasingly focused on the highly profitable, close to agrarian segments of the global chain. This intensifies the capital inflow to agrarian sector from previously unrelated with it branches, and also does not allow for a clear distinction between the purely agricultural and other mentioned types of TNCs. The agri-food complex of Ukraine as a whole is largely involved in the process of transnationalization, and the foreign capital entry tends to increase. The concentration of agricultural land by transnational corporations and their structures is being strengthened by means of acquiring and consolidating Ukrainian agricultural companies. The concentration of agricultural land by transnational corporations and their structures is being strengthened by means of acquiring and consolidating Ukrainian agricultural companies. Comparison of the main activities of the processes of transnationalization and holding of the agrarian sector of Ukraine (in particular, the involvement of corporations in the global financial space, including as investors, the relatively high level of their technical equipment and innovation activity, mainly export-oriented activities etc.) allowed to make a conclusion about their similarity.
The increased presence of these structures in Ukraine’s agrarian sector had a number of economic positives. However, there is no reason to believe that the arrival of foreign capital in Ukraine’s agrarian sector will significantly increase the value added and the scale of innovation. The question of the relationship between possible economic benefits and damage from the corporates’ violations of the principles of environmental and social sustainability of agricultural production also remains open. In this context, it should be emphasized that to a large extent the nature of the activities of corporate structures, including TNCs, within the framework of national agrarian complexes is determined by the norms adopted and followed in each particular country.

Keywords:transnationalization; transnational corporations; agricultural sector; agroholdings; agricultural enterprises

Бібл. 11

Article original in Ukrainian (pp. 39 - 53)

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The article was received by the Editorial staff on February 13 , 2019

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