Formation of analytical tools of capital reproduction in the agricultural sector of Ukraine

Keywords: capital reproduction, agricultural sector, formation of analytical tools, structural proportions, financial policy.


Purpose. The purpose of the article is to form analytical tools for the capital reproduction in the agricultural sector of Ukraine’s economy for substantiation of management decisions to ensure its continuous recovery, progressive growth of its value on the basis of positive qualitative changes in capital at its optimal structural proportions.

Methodology / approach. Such scientific methods were used in the article to achieve the purpose of the research: structural and logical analysis – to form a holistic conceptual approach to research; comparison – to substantiate the peculiarities of the reproduction of capital at the macro level and in the agricultural sector of the economy; statistical method – for processing information that characterizes the value and structural proportions of capital of economic entities in the agricultural sector of the economy.

Results. Elaboration of analytical indicators of the passive part of the balance of economic entities of agriculture, forestry, fisheries of Ukraine revealed that there is an increase of equity capital relative to its cost value, but a decrease in its share in the total capital structure, namely a decrease of cost estimate of equity capital relative to borrowed capital occurs 3.5 times more intensely; during 2010–2018, total capital, equity capital and gross value added of enterprises of the national economy of Ukraine, as well as the agricultural sector of the economy showed sustainable growth, but in the agricultural sector of the economy there was a decrease in the share of gross value added in total capital of enterprises that proved the tendency of potential narrowing the sources of ensuring the reproduction of capital; during the study period, the level of real capitalization in the agricultural sector of Ukraine's economy decreased significantly; dynamic changes in indicators of financial stability of agricultural enterprises confirmed that in 2018 agricultural enterprises were able to finance their assets at the expense of equity by only 49 % (in 2001 – 66%), financial stability of agricultural enterprises in 2018 lagged behind the optimal allowable value by 12 percentage points, in contrast to 2001 (exceeding the optimal allowable value by 3 percentage points), which encouraged an increase of financial risks in agriculture.

Originality / scientific novelty. Financial diagnostics of cost and structural characteristics of capital of economic entities in the agricultural sector of Ukraine`s economy revealed that in the agricultural sector there is a paradoxical situation: the dynamics of retained earnings growth in the structure of equity capital, accompanied by declining dynamics of equity in the total amount of total capital and narrowing of cost estimates of equity in relation to GDP. It is proved that the formation of optimal proportions of capital is one of the factors ensuring expanded reproduction of capital, therefore, the mechanism of implementation of financial policy of capital reproduction should be aimed at increasing internal sources of capital formation and optimizing the structure of total capital. Given that the agricultural sector of Ukraine with its basic component, farming, is a system-forming component in the national economy and forms the basis for preserving the sovereignty of the state (food, economic, environmental and energy security within certain limits), we assume that further accumulation of negative trends from the perspective of values and structural proportions of capital in the agricultural sector of Ukraine's economy may be the basis for the acquisition of a state of financial fragility in the economic system as a whole.

Practical value / implications. To harmonize certain norms of capital formation of Ukrainian enterprises, it is proposed to take into account the «fixed capital system», enshrined in the second EU Directive and to establish at the legislative level the procedure for capital formation for limited liability companies (LLCs): guaranteed real contribution of authorized capital should be at the level of the cost values of net assets of the company; to consider such level as the minimum admissible.


1. Sabluk, P. T., Luzan, Yu. Ya. (2019), Agrarian policy and factors for its implementation. Economika APK, vol. 10, pp. 6–17.
2. Haiets, V. M. (2000), Nestabilnist ta ekonomichne zrostannia [Instability and economic growth], Institute of economics and forecasting of the National Academy of Sciences of Ukraine, Kyiv, Ukraine.
3. Danylenko, A. I., Zymovets, V. V. and Sheludko, N. M. (2015), Decapitalization of Ukraine's financial sector: causes and consequences. Economics and forecasting, vol. 4, pp. 7–28.
4. Turylo, A. A. (2013), Theoretical and methodological principles of determining the nature and evaluation of capitalization of the enterprise. Teoretychni i praktychni aspekty ekonomiky ta intelektual'noii vlasnosti, vol. 2, no. 1, pp. 159–162.
5. Balitska, V. V. (2007), Kapital pidpryiemstv Ukrainy: tendentsii, priorytety [Capital of enterprises of Ukraine: trends, priorities], Institute of economics and forecasting of the National Academy of Sciences of Ukraine, Kyiv, Ukraine.
6. Davydenko, N. and Lemishko, O. (2019), Pro-European orientation of Ukraine adaptation of the agricultural policy of Ukraine to the conditions and requirements of the European Union. Proceedings of the 2019 international conference «Economic science for rural development» no. 52. Jelgava, LLU ESAF, 9-10 May 2019, Latvia.
7. Kostyrko, L. A., Kostyrko, R. O., Madiyarova, E. S. and Sereda, O. O. (2018), Comprehensive analysis of investment attractiveness of enterprises in the context of financial support for enterprise development. Financial and credit activities: problems of theory and practice, vol. 2, no. 25, pp. 198–207.
8. Sholoiko, A. (2017), Financing losses from natural and man-made disasters by use of crowdfunding. Investment management and financial innovations, vol. 14, is. 2, pp. 218–225.
9. Kasych, A. and Vochozka, M. (2017), Theoretical and methodical foundations of sustainable management in modern companies. Marketing and management of innovations, no. 2, pp. 298–305.
10. Oliynyk-Dunn, O., Adamenko, V and Zufan, P. (2017), Comparative analysis of debt financing models in Czech and Ukrainian agricultural enterprises. Acta universitatis agriculturae et silviculturae mendelianae brunensis, vol. 65, is. 5, pp. 1729–1739.
11. Soliwoda, M. and Pawlowska-Tyszko, J. (2014), Agricultural taxation in Poland vs. solutions in selected EU countries. Economic science for rural development, no. 33, pp. 99–107.
12. Kuzmenko, S., Perederiy, N. and Labenko, O. (2016), Market trends of oilseeds production in Ukraine. International Scientific Days 2016. The agri-food value chain: challenges for natural resources management and society. Slovak University of Agriculture in Nitra, Nitra, Slovak.
13. Kvasha, S., Davydenko, N., Ivanko, A. and Titenko, Z. (2019), Modeling the partial equilibrium in the milk and dairy market in Ukraine. Journal of environmental science and management, vol. 5, spec. is., pp. 78–86.
14. Novak, I., Verniuk, N. and Novak, Yu. (2016), Structuring of sources of attracting capital to agricultural production as a prerequisite for the formation of an effective investment mechanism in the agricultural sector. Economic Annals-XXI, vol. 159, is. 5–6, pp. 29–33.
15. Levchenko, N. V. and Ohlikh, V. V. (2012), Estimation methods for investment attractiveness of agrarian business in Ukrainian regions in the context of strategic planning. Actual problems of economics, vol. 8, pp. 285–293.
16. Zadorozhnyi, Z.-M. and Yasyshena, V. (2019), Intangible assets as an accounting and management object. Marketing and management of innovations, vol. 1, pp. 132–142.
17. State Statistics Service of Ukraine (2019), Statystychnyi shchorichnyk Ukrainy za 2018 rik [Statistical Yearbook of Ukraine for 2018], State Statistics Service of Ukraine, Кyiv, Ukraine.
18. Balytska, V. (2011), Resource provision of the national economy: declared goals and the real situation. Actual problems of economics, vol. 12, pp. 73–84.
19. Tereshchenko, G. M. (2015), Decapitalization of non-bank financial institutions: factors and consequences. Economics and forecasting, vol. 3, pp. 42–57.
20. Zhdanova, L. L. (2014), Reproduktsiia i nahromadzhennia kapitalu: teoriia, metodolohia, ekonomichna polityka [Reproduction and accumulation of capital: theory, methodology, economic policy], Astroprynt, Odesa, Ukraine.
21. Lunkina, I. T. (2013), Sustainable economic development of Ukraine, its nature and meaning. Ukrainian Black Sea region agrarian science, vol. 2(72), pp. 35–41.
22. Nikonova, Ya. I. (2010), Innovatsionnaya politika v sisteme gosudarstvennogo regulirovaniya ustoychivogo razvitiya natsional’noy ekonomiki [Innovation policy in the system of state regulation of sustainable development of the national economy], NGTU, Novosibirsk, Russia.
23. Havrylenko, T. V. (2016), Financial support of the enterprises in modern conditions. Internauka, vol. 12(2), pp. 47–48.
24. The Verkhovna Rada of Ukraine (2003), The Law of Ukraine «On farming», available at:
25. Chernodubova, E. V. and Temnikova, N. V. (2009), Financial system of Ukraine: problems and prospects of development. Efektyvnist' upravlinnia operatyvnoiiu diial'nistiu iak skladova zabezpechennia finansovoii stabil'nosti pidpryiemstva [Management efficiency of operational activity as a component of ensuring the financial stability of the enterprise]. III Mizhnarodna naukovo-praktychna konferentsia [III International scientific-practical conf.], Ekomen, Kyiv, November 16, pp. 181–184.
26. The Verkhovna Rada of Ukraine (2011), The Law of Ukraine «On Amendments to Certain Legislative Acts of Ukraine Concerning the Simplification of the Procedure for Starting a Business», available at:
27. State Committee for Entrepreneurs of Ukraine (2004), Letter «On the formation of an authorized capital by a private enterprise», available at:
28. The Verkhovna Rada of Ukraine (1991), The Law of Ukraine «On business associations», available at:
29. The Verkhovna Rada of Ukraine (2008), The Law of Ukraine «On joint-stock companies», available at:
30. The Verkhovana Rada of Ukraine (2018), The Law of Ukraine «About limited and additional liability companies», available at:
31. Korotash, Ya. O. (2014), Determination of the minimum size of the authorized capital of limited liability companies. Administrative law and process, vol. 3 (9), pp. 216–222.
32. Directive 2012/30/EU of the European Parliament and of the Council (2012), On coordination of safeguards which, for the protection of the interests of members and others, are required by Member States of companies within the meaning of the second paragraph of Article 54 of the Treaty on the Functioning of the European Union, in respect of the formation of public limited liability companies and the maintenance and alteration of their capital, with a view to making such safeguards equivalent, OJ L 315, October 25, pp. 74–97.
33. Glinkowska, B. and Chebotarov, V. (2018), A comparative cross-cultural analysis of the profile of a modern Ukrainian manager: the imperatives of the future in the context of internationalization. Comparative Economic Research, vol. 21, no. 3, pp. 63–74.–2018–0019.
34. Glinkowska, B., Chebotarov, Ie. and Chebotarov, V. (2020), Comparative studies of national business cultures in the countries of Central and Eastern Europe: the basics for improving international entrepreneurship in Poland and Ukraine. Comparative Economic Research, vol. 23, no. 1, pp. 7–18.
35. Lyuta, O. V., Boyarko, I. M. and Pigul, N. G. (2012), Improving methods for assessing the financial stability of the local budget. Current economic problems, no. 9. pp. 194–201.
36. Hravel, E. Yu. (2007), Methodical approaches to assessing the financial stability of enterprises. State and regions, no. 1, pp. 91–93.
37. Sarapina, O. A. (2013), System analysis of the financial condition of the enterprise: methods and areas for improvement. Scientific bulletin of Kherson State University. Series «Economic sciences», no. 1, pp. 96–99.
38. Haldane, A. (2004), Financial stability and macroeconomic models. Financial stability review, no. 16, pp. 80.
39. Lemishko, O. (2018), Modeling of endogenous factors impacting the efficiency of aggregate capital in Ukraine’s agriculture. Economic Annals-XXI, vol. 170, is. 3–4, pp. 10–14.
40. Minsky, H. (1977), The financial instability hypothesis: an interpretation of keynes and an alternative to «standard» theory. Nebraska journal of economics and business, vol. 16, no. 1, pp. 5–16.
How to Cite
Lemishko, O. (2020). Formation of analytical tools of capital reproduction in the agricultural sector of Ukraine. Agricultural and Resource Economics: International Scientific E-Journal, 6(3), 64-79. Retrieved from