EVALUATION OF THE DYNAMICS OF AGRICULTURAL TOTAL FACTOR PRODUCTIVITY IN UKRAINE
DOI:
https://doi.org/10.31713/ve4202013Keywords:
economic growth, factors of production, index approach, total factor productivity, agriculture.Abstract
This paper has reviewed the developments in agricultural productivityrelated to Ukrainian conditions, namely in the last two decades. Expandedtreatment of the economic category of productivity, which in addition to labor includes other factors of production, is essential for the economic research. It is important for the agriculture, where the processes of mechanization and automation occur especially fast. The method of multifactor productivity estimation shows which of the factors of production result in an increase or decrease of real agricultural output.The growth have been summarized for Ukrainian Agriculture. The basefor multifactor productivity calculations is the estimation of total factorproductivity. This methodology has been used in international economicdiscussion to determine whether economic growth is extensive or intensive.The approach used is to estimate the ratio of total output to resource input.At the same time, both indicators are estimated not in absolute terms, but using the index approach. We present the estimation of indices of agricultural output and indices of agricultural cost. The graph of dynamics of the level of total factor productivity of Ukrainian Agriculture is based onthese calculations and the downward dynamics of the indicator of totalfactor productivity of agriculture of Ukraine. It reflects the reduction of the effectiveness of the agrarian sector while the volume of production inabsolute terms increases. It highlights the importance of analysis ofefficiency reduction and the research for sources of further economicgrowth in agriculture in Ukraine. Such research will be the subject ofsubsequent publications.References
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