Approaches to evaluation of the agriculture competitiveness level: empirical evidence in Ukraine

Abstract

In the article methodological approaches to assessing the Ukraine’s agriculture competitiveness have been substantiated. In particular, an algorithm and evaluation toolkit have been developed, which includes the calculation of the integrated index of agricultural competitiveness based on the generalization of six partial indices: the level of economic development of the industry, the efficiency of management of the production process, profitability, financial stability and solvency, business activity in the industry, efficiency of sales management and goods promotion on the markets, participation in foreign economic activity.Based on the developed methodology, an estimation of the competitiveness of Ukraine’s agriculture for 2013-2017 was carried out. The obtained results showed that the positive dynamics of the index integrated of agricultural competitiveness first of all was determined by indicators of profitability, production process management, financial stability and solvency. A downward factor was the low rate of Ukrainian agriculture’s participation in foreign economic activity, namely, the growth of imports and insignificant volumes of foreign investment.The versatility of an integrated index of competitiveness allows to make a comparative assessment of the industries competitiveness level within the national economy and to determine to what extent some of them are capable of becoming the locomotive of theUkrainian economy in international markets. This creates the possibility of developing an effective economic policy to support the most competitive industries based on a rational allocation of public funds, and to form a long-term competitive policy of the state at the sectoral level. The spread of the practice of international comparisons in the future will allow determiningwhat factors provide competitive advantages for agriculture in international markets and which ones need to be strengthened.