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Assessing the Impact of Foreign Trade Factors on the Development of Doing Business in the Agricultural Sector
Moskalenko N. O., Khvostikov A. I.

Moskalenko, Natalia O., and Khvostikov, Andrii I. (2020) “Assessing the Impact of Foreign Trade Factors on the Development of Doing Business in the Agricultural Sector.” Business Inform 7:139–147.
https://doi.org/10.32983/2222-4459-2020-7-139-147

Section: Agricultural Economics and Agribusiness

Article is written in Ukrainian
Downloads/views: 4

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UDC 339

Abstract:
The degree of openness of the economy as the presence of ties with residents of other countries in the framework of export-import operations determines the potential impact of foreign trade on business development in the agricultural sector. Analysis of the indicators of economic openness in relation to Ukraine (the country's export quota, the country's import quota, foreign trade quota) for the period 2008–2019 allows us to state that the national economy falls into the category of open. At the same time, import quotas exceed export quotas by 7–15%, which indicates the predominance of imports in the structure of foreign trade. In order to develop a mechanism for effective management of foreign economic activity of the agricultural sector, groups of factors of external (supranational level) and internal (macro-economic level) environment are identified that have a direct impact on the nature of the flow and the volume of foreign trade. External factors included the following: liberalization of trade rules; the amount of duties in trading partner countries; non-tariff restrictions in trading partner countries; world prices; foreign market capacity; ecological situation; the domestic factors included: tariff restrictions; non-tariff restrictions; institutional component (level of corruption, level of bureaucratization); resource opportunities; level of technology development; domestic market capacity; state of transport and logistics infrastructure; exchange rate. Based on the identification of factors influencing foreign trade on business development in the agricultural sector, their expert assessment was conducted according to 3 criteria: weight of impact, the degree of impact and the probability of increasing the impact. According to the level of agreement of experts, assessed using the concordance coefficient, the results obtained should be considered statistically significant. Among external factors, world prices are considered the most favorable, and non-tariff restrictions in partner countries are considered the most threatening. Among the internal favorable factors, resource opportunities and the level of technology development are in the lead, among the unfavorable ones tariff and non-tariff restrictions, as well as the institutional component have been identified. The identified factors must be taken into account when developing strategies for starting a business in the agricultural sector.

Keywords: export quota, import quota, liberalization of trade rules, tariff restrictions, non-tariff restrictions, world prices, transport and logistics infrastructure, exchange rate, agricultural sector.

Tabl.: 2. Bibl.: 19.

Moskalenko Natalia O. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of Customs and Taxation, Simon Kuznets Kharkiv National University of Economics (9a Nauky Ave., Kharkiv, 61166, Ukraine)
Email: [email protected]
Khvostikov Andrii I. – Postgraduate Student, Department of Customs and Taxation, Simon Kuznets Kharkiv National University of Economics (9a Nauky Ave., Kharkiv, 61166, Ukraine)
Email: [email protected]

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