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RESEARCH CENTER FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS of Ukraine (KHARKIV, UKRAINE)

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Liburkina L. M.

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Economic and Financial Mechanisms for Strengthening the Competitiveness of Ukraine’s Agricultural Machinery Industry
Navrotskyi Y. F., Petrov V. M., Avramchuk L. A.

Navrotskyi, Yaroslav F., Petrov, Vadym M., and Avramchuk, Lidiia A. (2026) “Economic and Financial Mechanisms for Strengthening the Competitiveness of Ukraine’s Agricultural Machinery Industry.” Business Inform 9:345–356.
https://doi.org/10.32983/2222-4459-2026-9-345-356

Section: Industrial Economics

Article is written in Ukrainian
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UDC 338.45:631.171(477)

Abstract:
Existing research mostly examines financial support instruments for Ukraine’s agricultural machinery industry and structural-organisational mechanisms of its development separately, and the statistical picture presented in most publications does not reflect 2025–2026 dynamics. The aim of the article is to substantiate a set of economic and financial mechanisms for strengthening the competitiveness of Ukraine’s agricultural machinery industry based on current statistical data, including 2025–2026 indicators. The research methods include statistical analysis of time series based on official State Statistics Service data for 2020–2025, calculation of the Revealed Comparative Advantage (RCA) index, SWOT analysis, grouping of State financial support mechanisms, and elements of economic-mathematical modelling of an integral competitiveness index. The study reveals a critical decline in the production of high-power tractors (from 1.2 thousand units in 2021 to 90 in 2024) and a decrease in employment (by 44.7% in 2020–2024), as well as critical import dependence: in 2025 imports of agricultural machinery (USD 1,468.0 million) exceeded exports (USD 31.7 million) by 46.3 times. At the same time, 2025 brought contradictory signs of revival: the number of active enterprises grew for the first time in 2021–2025, by 4.2%, and output of soil-cultivation and sowing machinery grew by 23.9%. Using the RCA index (1.802), it is confirmed that soil-cultivation and sowing machinery is competitive on the world market, accounting for 97.5% of Ukraine’s agricultural machinery export; however, a structural paradox is identified: the same product group accounts for 57.4% of the industry’s total imports, with imports exceeding exports within it by 27.3 times, showing that international competitive advantage does not guarantee a domestic market position. A SWOT analysis is conducted, and State financial support mechanisms are systematised, including the «Made in Ukraine» programme (from 5.3 to over 14.6 thousand units of machinery purchased over two years, with compensation raised to 40% for front-line regions). The scientific novelty lies in updating the statistical picture with 2025 data, identifying the structural paradox of simultaneous export specialisation and import dependence, and combining the economic and financial dimensions of competitiveness within a single integral model. The practical value lies in substantiating directions for strengthening competitiveness through a differentiated combination of economic and financial mechanisms depending on the level of international competitiveness of each product group.

Keywords: competitiveness; economic mechanisms; financial mechanisms; State support; modelling; agricultural machinery; postwar recovery; SWOT analysis.

Tabl.: 5. Formulae: 2. Bibl.: 25.

Navrotskyi Yaroslav F. – Candidate of Sciences (Economics), Senior Research Stuff Member, Senior Research Fellow, Investment and Material-Technical Support Department, National Scientific Center «Institute of Agrarian Economics» of NAAS of Ukraine (10 Heroiv Oborony Str., Kyiv, 03680, Ukraine)
Email: [email protected]
Petrov Vadym M. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of Management, Business, and Administration, State Biotechnological University (44 Alchevskykh Str., Kharkiv, 61002, Ukraine)
Email: [email protected]
Avramchuk Lidiia A. – Candidate of Sciences (Pedagogy), Associate Professor, Associate Professor, Department of Banking and Insurance, National University of Life and Environmental Sciences of Ukraine (15 Heroiv Oborony Str., Kyiv, 03041, Ukraine)
Email: [email protected]

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