CONCEPTUAL BASES OF STATE REGULATION OF VALUE ADDED IN THE GRAIN PRODUCT SUBCOMPLEX OF UKRAINE

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Published: Oct 12, 2018
https://doi.org/10.30525/2256-0742/2018-4-3-283-287

  Oleksandr Svitovyi

  Mykola Diachenko

  Hryhorii Kovalenko

Abstract

The purpose of the article is to analyse the dynamics of the development of the grain product subcomplex and to determine the conceptual foundations of state regulation of value added in this subcomplex of Ukraine. Methodology. In the process of research, the following methods were used, such as theoretical generalization, statistical analysis, and system approach. The method of theoretical generalization contributed to the definition of conceptual foundations of state regulation of value added in the grain product subcomplex. Using the method of statistical analysis, the dynamics of production in the subcomplex was determined. The system approach allowed formulating directions for the development of the grain product subcomplex and improvement of the state regulation of value added. The results of the study showed that grain production in Ukraine tends to increase. A similar situation is observed with the export of grain, but raw materials are products with low value added. The production and export of most products of processing grain and finished grain products with high added value in Ukraine decrease each year. Getting the maximum of value added in the grain product subcomplex can only be achieved provided the complex development of the subcomplex within the agro-industrial complex of our country and its interaction with other sectors of the economy. A particular attention should be paid to the strengthening of vertical and horizontal integration, development of cooperation in the grain product subcomplex in the state regulation of the process of creation of value added. Also, we believe it is necessary to improve the legislative framework for the creation of clusters, approval of programs for their development at the national and regional levels. Practical implications. Improvement of state regulation of value added in grain product subcomplex of Ukraine will ensure its intensive development. The consequence of such regulation will be the transformation of production of raw materials into high value-added production. Value/originality. The research will help to understand, which directions of state regulation are most effective in maximizing the value added in Ukraine’s grain product subcomplex.

How to Cite

Svitovyi, O., Diachenko, M., & Kovalenko, H. (2018). CONCEPTUAL BASES OF STATE REGULATION OF VALUE ADDED IN THE GRAIN PRODUCT SUBCOMPLEX OF UKRAINE. Baltic Journal of Economic Studies, 4(3), 283-287. https://doi.org/10.30525/2256-0742/2018-4-3-283-287
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Keywords

state regulation, grain product subcomplex, grain processing products, value added, profit

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Issue
Vol. 4 No. 3 (2018): Baltic Journal of Economic Studies