Assessment of the financial security of agriculture in Ukraine
DOI:
https://doi.org/10.51599/are.2023.09.01.01Keywords:
methodical approach, financial security, components of financial security, model, integral value.Abstract
Purpose. The purpose of the article is to improve the methodology and approbation of the author’s methodical approach to analyzing the financial security of the country’s agriculture in order to form an appropriate informational and analytical basis for the development of high-quality management decisions aimed at strengthening the key security parameters of this strategic branch of the national economy and the impact of these processes on the growth of the industry, implementation its potential for the development of rural areas and improvement of the quality of life of the rural population.
Methodology / approach. The methodological basis of the study was system-structural (development of information and analytical support for monitoring financial security at the industry level) and integral-temporal (construction of dynamic series of empirical indicators of financial security of the industry, including their components) approaches. The author’s approach to assessing the financial security of agriculture involves the use of an algorithm, the basis of which is the normalization of indicators (stimulators and destimulators, complementary influence), determination of the weights of indicators and their groups using the Principal component analysis, calculation of multidimensional values in the form of weighted integral indices.
Results. The results of the analysis of the dynamics of the integral values of the components of the financial security of Ukraine’s agriculture provided grounds for the conclusion that there are both positive trends and problematic changes in the functioning and development of the country’s agriculture and rural areas in general. It was established that the greatest impact on ensuring the financial resilience of the agricultural sector of Ukraine for 2010–2020 was industrial and economic (the weighting factor was 19.1 %) and credit (18.8 %) security. The results of the empirical research showed that the level of financial security of agriculture in Ukraine for 2010–2020 was below moderate (48.9 %) and decreased by 0.87 percentage points on average every year.
Originality / scientific novelty. A new functional-systemic method of calculating the integral index of financial security of the industry (by six components: investment, credit, debt, money, production-economic, system-structural) has been developed, which takes into account the spatial-temporal and sigmoidal nature of financial-economic processes through the use of a logarithmic function , leveling the statistical error of the linear calculation method.
Practical value / implications. The results of the study are aimed at the formation of a powerful informational and analytical basis for the development of management decisions on strengthening the financial security of agriculture in Ukraine with a simultaneous focus on the development of rural areas and improving the quality of life of the rural population.
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References
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Shpak, N., Kulyniak, I., Gvozd, M., Pyrog, O., & Sroka, W. (2021). Shadow economy and its impact on the public administration: aspects of financial and economic security of the country’s industry. Administratie si Management Public, 36, 81–101. https://doi.org/10.24818/amp/2021.36-05.
Sylkin, O., Shtangret, A., Ogirko, O., & Melnikov, A. (2018). Assessing the financial security of the engineering enterprises as preconditions of application of anti-crisis management: practical aspect. Business and Economic Horizons, 14(4), 926–940. https://doi.org/10.15208/beh.2018.63.
Florek-Paszkowska, A., Ujwary-Gil, A., & Godlewska-Dzioboń, B. (2021). Business innovation and critical success factors in the era of digital transformation and turbulent times. Journal of Entrepreneurship, Management and Innovation, 17(4), 7–28. https://doi.org/10.7341/20211741.
Kutsyk, P., Lupak, R., Kutsyk, V., & Protsykevych, A. (2020). State policy of the investment processes development on the market of IT services: analytical and strategic aspects of implementation in Ukraine. Economic Annals-XXI, 182(3–4), 64–76. https://doi.org/10.21003/ea.V182-08.
Vasyltsiv, T., Mulska, O., Panchenko, V., Kohut, M., Zaychenko, V., & Levytska, O. (2021). Technologization processes and social and economic growth: modeling the impact and priorities for strengthening the technological competitiveness of the economy. Regional Science Inquiry, XIII(1), 117–134.
Nkeki, C. I. (2018). Optimal investment risks and debt management with backup security in a financial crisis. Journal of Computational and Applied Mathematics, 338, 129–152. https://doi.org/10.1016/j.cam.2018.01.032.
Yang, B. (2020). Construction of logistics financial security risk ontology model based on risk association and machine learning. Safety Science, 123, 104437. https://doi.org/10.1016/j.ssci.2019.08.005.
Zachosova, N., Herasymenko, O., & Shevchenko, A. (2018). Risks and possibilities of the effect of financial inclusion on managing the financial security at the macro level. Investment Management and Financial Innovations, 15(4), 304–319. https://doi.org/10.21511/imfi.15(4).2018.25.
Shkolnyk, I., Kozmenko, S., Polach, J., & Wolanin, E. (2020). State financial security: comprehensive analysis of its impact factors. Journal of International Studies, 13(2), 291–309. https://doi.org/10.14254/2071-8330.2020/13-2/20.
Blajer-Gołębiewska, A., Wach, D., & Kos, M. (2018). Financial risk information avoidance. Economic Research, 31(1), 521–536. https://doi.org/10.1080/1331677X.2018.1439396.
Kubás, J., Šoltés, V., Mišík, J., & Štofková, Z. (2017). Efficiency of using financial resources and their impact on security in a local context. Procedia Engineering, 192, 498–503. http://doi.org/10.1016/j.proeng.2017.06.086.
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Ivanisevic, A., Losonc, A., Radisic, M., Njegovan, M., & Pavlovic, A. (2020). Development of an effective planning model for improving financial performance. Forum Scientiae Oeconomia, 8(1), 67–81. https://doi.org/10.23762/FSO_VOL8_NO1_5.
Poltorak, A., Potryvaieva, N., Kuzoma, V., Volosyuk, Y., & Bobrovska, N. (2021). Development of doctrinal model for state financial security management and forecasting its level. Eastern-European Journal of Enterprise Technologies, 5(13 (113)), 26–33. https://doi.org/10.15587/1729-4061.2021.243056.
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Khalatur, S., Pavlova, G., & Zhylenko, K. (2018). The role of some indicators of financial security in Ukraine in the context of transnationalization and national interests. Investment Management and Financial Innovations, 15(3), 237–248. https://doi.org/10.21511/imfi.15(3).2018.20.
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Lemishko, O. (2020). Formation of analytical tools of capital reproduction in the agricultural sector of Ukraine. Agricultural and Resource Economics, 6(3), 64–79. https://doi.org/10.51599/are.2020.06.03.04.
McCallig, J., Robb, A., & Rohde, F. (2019). Establishing the representational faithfulness of financial accounting information using multiparty security, network analysis and a blockchain. International Journal of Accounting Information Systems, 33, 47–58. https://doi.org/10.1016/j.accinf.2019.03.004.
Goel, S., Williams, K. J., & Warkentin, M. (2021). Can financial incentives help with the struggle for security policy compliance? Information & Management, 58(4), 103447. https://doi.org/10.1016/j.im.2021.103447.
Lee, C.-C., & Wang, C.-S. (2022). Financial development, technological innovation and energy security: evidence from Chinese provincial experience. Energy Economics, 112, 106161. https://doi.org/10.1016/j.eneco.2022.106161.
Lepers, E., & Serrano, A. S. (2020). Decomposing financial (in)stability in emerging economies. Research in International Business and Finance, 51, 101068. https://doi.org/10.1016/j.ribaf.2019.101068.
Sokil, O., Podolchak, N., Kniaz, S., Sokil, Y., & Kucher, L. (2022). Sustainable development prediction of start-ups in Ukraine. Journal of Environmental Management and Tourism, 13(7), 1901–1910. https://doi.org/10.14505/jemt.v13.7(63).10.
Pronoza, P., Kuzenko, T., & Sablina, N. (2022). Implementation of strategic tools in the process of financial security management of industrial enterprises in Ukraine. Eastern-European Journal of Enterprise Technologies, 2(13(116), 15–23. https://doi.org/10.15587/1729-4061.2022.254234.
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