Theoretical and methodological foundations for the development of the investment potential of the agri-food sector

Abstract

Introduction. The main requirement for the further development of the agri-food sector is the active attraction of investments that will help modernize production, introduce innovative technologies, develop infrastructure, and improve living standards in rural areas. Such an approach will strengthen Ukraine's position in the global agricultural market and become a powerful driver of the country's sustainable economic growth.

The study aims to examine the theoretical and methodological foundations of the content, structure, and functional role of the agri-food sector's investment potential in a transformational economy, the institutional environment for its formation, and expanded reproduction.

Results. The main fundamental economic categories that form the concept of ‘investment potential’ are defined, where the term ‘potential’ is interpreted in two main aspects (narrow and broad understanding). At the same time, the characteristics of its functional aspect (nominal, attributed, and relational aspects of potential) are determined. Analyzing the essence of the concept of ‘investment potential,’ the author allocates several key theoretical and methodological approaches to its interpretation, in particular, the cost approach – which focuses on the ability of a territory or economic entity to attract and absorb capital, resource approach - considers investment potential as a set of available resources and opportunities for investment, which are formed under the influence of various economic, social and political factors; performance approach - focuses on assessing the efficiency of investment use.

The author proves the subject orientation of the conceptual and categorical study of ‘investment potential,’ which reflects its belonging to both the subject of economic relations or management (enterprise, organization, institution, etc.) and a separate sector of the economy (industry) and region, etc. The author's definition of the concept of ‘investment potential of the agri-food sector as a result of synergistic interaction of social, economic, labor, financial, land, biological and other production resources in combination with sectoral measures of state support, forming prerequisites for the expanded reproduction of environmentally sound agri-food production through the efficient use of own and attracted investment capital and optimal technical and technological load on the ecosystem is substantiated. The structural components of the region's agri-food sector's investment potential are determined, etc.

Conclusions. The analysis of investment potential should be carried out from two main perspectives: 1) if it is considered as the goal of investment activity, it acts as a strategic business asset, which is formed under the influence of several factors that determine the investment demand; 2) if investment potential is considered as a component of investment activity and the result of its implementation, it serves as a resource for business, which determines the opportunities and limitations for further investment, etc.