<abstract xmlns="http://www.w3.org/1999/xhtml"><bold>Background/Purpose:</bold> An effective financial system should increase the efficiency of economic activities. This study provides evidence regarding the importance of financial development for agricultural growth in Ukraine.<bold>Methodology:</bold> We used non-integrated and integral indicators, time series and regression analysis to investigate the link between the financial development and agricultural growth.<bold>Results:</bold> The results based on integral indicators shows that the financial development does not affect agricultural growth in Ukraine. The study based on non-integrated indicators, which characterizes various aspects of the financial system’s banking component and agricultural growth, provided a significant link between the financial system and agriculture growth. The regression models revealed if bank deposits to GDP (%) increases the value added per worker in agriculture increases exponentially. The results of the study indicate that, agriculture is more sensitive to lending changes than the vast majority of other sectors of the economy. The increasing lending of one UAH (Ukrainian hryvnia) resulted in retail turnover growth of 1.62 UAH, while agricultural gross output, growth was UAH 5.06.<bold>Conclusion:</bold> Our results reveal a positive relationship between financial system’s banking component and agriculture growth in Ukraine. The results indicate the necessity for continued research into further developing universal methodological approaches of appraising the nexus of the financial system’s banking component on agriculture growth in general as well separate farm groups. The results of our study has important implications on policy making authorities efforts to stimulate agricultural growth by improving the efficiency of the financial system’s banking component.</abstract>

Background/Purpose: An effective financial system should increase the efficiency of economic activities. This study provides evidence regarding the importance of financial development for agricultural growth in Ukraine.Methodology: We used non-integrated and integral indicators, time series and regression analysis to investigate the link between the financial development and agricultural growth.Results: The results based on integral indicators shows that the financial development does not affect agricultural growth in Ukraine. The study based on non-integrated indicators, which characterizes various aspects of the financial system’s banking component and agricultural growth, provided a significant link between the financial system and agriculture growth. The regression models revealed if bank deposits to GDP (%) increases the value added per worker in agriculture increases exponentially. The results of the study indicate that, agriculture is more sensitive to lending changes than the vast majority of other sectors of the economy. The increasing lending of one UAH (Ukrainian hryvnia) resulted in retail turnover growth of 1.62 UAH, while agricultural gross output, growth was UAH 5.06.Conclusion: Our results reveal a positive relationship between financial system’s banking component and agriculture growth in Ukraine. The results indicate the necessity for continued research into further developing universal methodological approaches of appraising the nexus of the financial system’s banking component on agriculture growth in general as well separate farm groups. The results of our study has important implications on policy making authorities efforts to stimulate agricultural growth by improving the efficiency of the financial system’s banking component.

Financial System and Agricultural Growth in Ukraine

National University of Life and Environmental Sciences of Ukraine

Organizacija

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Financial System and Agricultural Growth in Ukraine"}

Background/Purpose: An effective financial system should increase the efficiency of economic activities. This study provides evidence regarding the importance...

Financial System and Agricultural Growth in Ukraine

Data publikacji: 22 sie 2017

Zakres stron: 244 - 253

Otrzymano: 07 mar 2017

Przyjęty: 03 cze 2017

DOI: https://doi.org/10.1515/orga-2017-0016

Słowa kluczowe
Agricultural growth, the integral indicator of the agricultural growth, the integral indicator of the financial development, time series analysis, regression analysis, financial system

© 2017 Olena Oliynyk-Dunn, published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Financial System and Agricultural Growth in Ukraine

Data publikacji: 22 sie 2017

Zakres stron: 244 - 253

Otrzymano: 07 mar 2017

Przyjęty: 03 cze 2017

DOI: https://doi.org/10.1515/orga-2017-0016

Słowa kluczoweAgricultural growth, the integral indicator of the agricultural growth, the integral indicator of the financial development, time series analysis, regression analysis, financial system

© 2017 Olena Oliynyk-Dunn, published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Słowa kluczowe
Agricultural growth, the integral indicator of the agricultural growth, the integral indicator of the financial development, time series analysis, regression analysis, financial system