World experience in economic stimulation of agricultural entrepreneurship: support tools and effects on the growth of the agro-industrial complex

Анотація

Purpose. The purpose of the study is to analyze the effectiveness of different economic stimulation instruments in promoting the development of agricultural entrepreneurship and increasing the power of the agro-industrial complex in some countries. Even though an extensive count of some instruments (like subsidies, innovation grants, tax advantages, and credits) is currently implemented the world over, there is still a dearth of comparative empirical studies that evaluate the aggregate and separate effects of the instruments to formal and economic contexts.

Methods. The panel data econometric model encompasses the dataset of 2022 - 2024 and comprises eight countries: the USA, Germany, Brazil, Ukraine, Poland, China, the Netherlands, and India, characterized by a variety of agro-industrial support systems. The model uses fixed-effects estimation in consideration of the country-specific and time-specific heterogeneity. The dependent variable is the rate of growth of the agro-industrial complex per year. The list of independent variables consists of the subsidy rate, agricultural credit per capita, tax exemption index, public funding of innovation, export support, educational programs funding, land reform index, and conditions of market access. International databases such as the World Bank, OECD, FAO, and IMF were used to source data.

Results. The result shows that countries that apply the integrated support approaches, which are a complex of financial facilities alongside institutional and infrastructural development, attain stronger and more consistent agro-industrial complex growth. The greatest growth was reported in India and China because both nations were steadily investing in innovation, export promotion and education in rural areas. By contrast, those countries that had restricted or focused policies, like Ukraine and Germany, had a worse or more variable performance. The model affirms the statistical significance of various variables, especially innovation grants, agricultural credit, and market access.

Conclusions. The research proves the fact that diversified balanced policy tools are more effective in stimulating agricultural entrepreneurship and in the sustainable development of the agro-industrial complex. The suggested econometric model can be used in other cross-national analyses, and it can be a basis of evidence-based policymaking. The findings are particularly important to countries undergoing an economic transition, providing practical suggestions on the best way to organize national support systems in the development and modernization of agriculture in rural areas.