INCREASING THE INVESTMENT ATTRACTIVENESS OF THE AGRICULTURAL SECTOR IN RUSSIA

The article studies the management system of investment attractiveness in the agricultural sector. The authors set the task of analytical (evaluation of investment attractiveness of the Russian agricultural sector using economicmathematical and economic-statistical methods) and research plans (to identify problems of increasing investment attractiveness and suggest the best ways to eliminate them). The purpose of the article is to determine the main directions of increasing the investment attractiveness of the agricultural sector in the Russian Federation.

We used the following methods: a content analysis of the legal framework and scientific publications on the investment attractiveness of the agricultural sector, economic, statistical, and econometric analysis of the dynamics of the industry using special software applications (STATISTICA package).

Over the past three years, the dynamics of investment in fixed capital in the agricultural sector is steadily increasing, but the volume of loans attracted is almost twice as high as the volume of investment (hence, loans are attracted to solve current problems). Investment activity in agriculture is unstable, as evidenced by the coefficients of structural shifts in the investment process. State participation in agriculture is high, but it does not stimulate economic growth. The practical purpose and scientific value of the article are to build a holistic and logical vision in solving the problems of increasing the investment attractiveness of the agricultural sector.

We highlighted a number of latent factors that limit the investment attractiveness of the agricultural sector: high debt burden of enterprises, low innovative activity, the use of outdated technologies, inefficient organization and use of outdated approaches to the management of agricultural enterprises and of the industry as a whole.

The article concludes that institutional changes and reforms are needed, which should be directed: first, to change the sectoral structure by increasing the level of technological effectiveness of agricultural production; second, to change the role of the state in the processes of functioning and development of the industry (the gradual rejection of protectionism in favor of competition). 

1. Semenova N.N., Sundikova I.V. The Russian food import ban: which party suffers more? Finansovaya analitika: problemy i resheniya = Financial Analytics: Science and Experience. 2015;(40):37–45. (In Russ.).

2. Nguyen T.T.T. The contents of investment attractiveness definition. Izvestiya Tul’skogo gosudarstvennogo universiteta. Ekonomicheskie i yuridicheskie nauki = Izvestiya Tula State University. Economic and Legal Sciences. 2013;(2–1):91–96. (In Russ.).

3. Valinurova L.S., Kazakova O.B. Investment. Moscow: Walters Kluwer Publ.; 2010. 448 p. (In Russ.). 4. Krylov E.I., Vlasova V.M., Egorova M.G. Analysis of the financial condition and investment attractiveness of the enterprise. Moscow: Finansy i statistika; 2003. 191 p. (In Russ.).

4. Il’ina S. A. The essence of the category “investment climate” and of the category “investment attractiveness”. Molodoi uchenyi = Young Scientist. 2012;(5):153–157. (In Russ.).

5. Podshivalenko G.P. Investment climate and investment attractiveness. Finansovaya analitika: problemy i resheniya = Financial Analytics: Science and Experience. 2010;(15):7–10. (In Russ.).

6. Bose S., Roy S.K., Tiwari A.K. Measuring customer-based place brand equity (CBPBE): An investment attractiveness perspective. Journal of Strategic Marketing. 2016;24(7):617–634. DOI: 10.1080/0965254X. 2016.1148766

7. Falk М. A gravity model of foreign direct investment in the hospitality industry. Tourism Management. 2016;55: 225–237. DOI: 10.1016/j.tourman.2016.02.012

8. Le Polain de Waroux Y., Garrett R. D., Heilmayr R., Lambin E. F. Land-use policies and corporate investments in agriculture in the Gran Chaco and Chiquitano. PNAS. 2016;113(15):4021–4026. DOI: 10.1073/pnas.1602646113

9. Testa R., Foderà M., Di Trapani A.-M., Tudisca S., Sgroi F. Choice between alternative investments in agriculture: The role of organic farming to avoid the abandonment of rural areas. Ecological Engineering. 2015;83:227–232. DOI: 10.1016/j.ecoleng.2015.06.021

10. Zaitseva A.S., Sergeev A. Yu. Food security of the Russian Federation: State and development prospects. In: Problems and prospects for the development of the Russian economy. Proc. 6th Sci.-pract. conf. (23 Dec. 2016). Praha: Vĕdecko vydavatelské centrum “Sociosféra-CZ”; 2017:63–66. URL: https://elib.pnzgu.ru/ files/eb/RFi5aIjCFwmq.pdf (accessed 16.05.2018). (In Russ.).

11. Blank I.A. Fundamentals of financial management. Kiev: Nika-Center; 1999. (In Russ.).

12. Jorgenson A. K., Kuykendall K. A. Globalization, foreign investment dependence and agriculture production: Pesticide and fertilizer use in less-developed countries, 1990–2000. Social Forces. 2008;87(1):529–560. DOI: 10.1353/sof.0.0064

13. Hallam D. Foreign investment in developing country agriculture: Issues, policy implications and international response. In: Beyond the crisis: International investment for a stronger, cleaner, fairer global economy. OECD 8th Global forum on international investment (7–8 Dec. 2009). Paris: OECD Conference Centre; 2009. URL: http://www.oecd.org/investment/globalforum/44231828.pdf (accessed 16.05.2018).

14. Bathla S. Futuristic private and public capital requirements in agriculture for doubling farmers’ income across the states. Agricultural Economics Research Review. 2017;(Conference Number):101–116.

15. Kazinets L.S. Measuring structural shifts in the economy. Moscow: Ekonomika; 1969. 167 p. (In Russ.).