The Investment Attractiveness of the Agricultural Sector in Republic of Moldova in Terms of European Integration

Abstract

<jats:p>The modernization of the Agro-food sector, and revitalization of its conditions and standards, needs to attract funding sources from international donors, which helps stimulate the development of high value agriculture. Consequently, attracting agricultural investment is a strategic priority for Moldovan farmers, as this represents tangible economic growth based on retooling and modernization of agriculture. The National Bureau of Statistics ranks Moldova second in relation to the interest rates charged for loans. The average annual interest rate for lending to agriculture is 14.13%. Georgia in first place with 29%. Despite all the successes of banking, agriculture (as a sector) still remains an unattractive investment for banks in Moldova. The banking sector has also expressed reluctance in supporting small-scale agribusiness.</jats:p>

Energy as a Factor of Investment Attractiveness of Regions for Agricultural Enterprises

“…In the research on investment potential of agriculture in Kazakhstan, the correlation-regression model was used, in which indicators that influence investment attractiveness of agriculture include: employed population in agriculture, agriculture expenses form state budget, GDP, gross output of agriculture, and number of agricultural enterprises [66]. The analysis of the Investment Attractiveness of the Agricultural Sector in Republic of Moldova was based mainly on financial data, i.e., financial statements of commercial banks and other financial institutions determining the involvement of these entities in investments in agriculture [67]. This approach also does not provide a basis for analysing the spatial differentiation of investment attractiveness, including the energy factor.…”