Archive 2006

• 09.10.2006

  Barriers to Investment in the Agriculture and Food Sector in Ukraine

  (Code:AgPP 5)

  Efficiency and competitiveness are the key issues for any country that intends to become a real player on world markets. Investments from domestic and foreign investors in improved technologies and technical progress will increase efficiency and competitiveness of Ukrainian agriculture. There have been dozens of investment climate papers written over the last decade, including papers produced by the German Advisory Group (GAG) and the Institute for Economic Research and Policy Consulting (IER) and there is little to add to that quite comprehensive analysis. Despite voluminous literature produces on this topic still investments in the sector have been too low during the last years. Currently, investments are much lower than necessary for developing the agriculture and food sector. Foreign Direct Investment (FDI) plays a particularly important role. It adds to domestic capital accumulation (about 15 % of total investments), facilitates access to international markets and brings additional knowledge to the country. Ukraine lags behind most emerging economies. During the first years of economic recovery in Ukraine, consumer demand was the main domestic contributor to growth. Another key engine could be external demand on world food markets. These markets offer interesting opportunities with additional demand for bio energy raw materials and bio fuels.

  Attached file  (105.3 kb)
  Authors:  Strubenhoff Heinz-Wilhelm, Nivievskyi Oleg
  Tags:  Agricultural dialogue, Center of economic research
  Research spheres:  Infrastructure