The Role of Agriculture in Gross Added Value

Abstract

The paper presents a study on the sectoral structure of gross added value in various countries including European countries. The purpose of this study is to identify the role of agriculture as an economic activity in the formation of gross added value of countries, to identify and determine areas of the economy development on the basis of comparison and experience of different countries. Structural differences based on the index analysis. A comparative analysis of the structure of gross value added for the presented set of countries is performed for the first time. Most European countries have a low level of differences in the sectoral structure of gross added value compared to the Russian Federation. Different growth rates of the main macroeconomic indicator are possible at a very low level of differences in the sectoral structure. This indicates the presence of more extensive, systemic factors, relationships, trends in macroeconomics. Methods and results can be used in socioeconomic research, developing strategies for the effective development of sectors of the national economy of countries based on the optimal structure. This research makes a significant contribution to enriching the practice of applying the methodology for studying structural differences by international calculations.

Growth of value added as a factor in the development of Ukrainian agriculture in the context of accelerated integration into the EU

“…The first approach to determining GDP assumes that total output is equal to total domestic demand, so GDP is the sum of public and private consumption, investment, and net exports. The second approach concerns the productive side of the economy, and states that GDP consists of gross value added (GVA) by sector, import duty, and value added tax (Salimova et al, 2020;Andreescu, 2021;Melembe et al, 2021). To further study the priority of agricultural development in Ukraine, it is advisable to focus on the indicator of gross value added, since taxes and subsidies are usually very difficult to predict.…”

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“…The first approach to determining GDP assumes that total output is equal to total domestic demand, so GDP is the sum of public and private consumption, investment, and net exports. The second approach concerns the productive side of the economy, and states that GDP consists of gross value added (GVA) by sector, import duty, and value added tax (Salimova et al, 2020;Andreescu, 2021;Melembe et al, 2021). To further study the priority of agricultural development in Ukraine, it is advisable to focus on the indicator of gross value added, since taxes and subsidies are usually very difficult to predict.…”

Developments in the income situation of the agricultural sector in selected the EU member states

“…However, in fact, programmes highly targeted at those in need were more efficient than transfers distributing income across the lifecycle of individuals. While family cash benefits for low-income groups were found to have a strong redistributive impact, some transfers, like disability benefits, increase the risk of creating poverty traps for beneficiaries (Bubbico & Freytag, 2018;Guzel et al, 2020), especially due to the impact of employment in informal sector (Mishchuk et al, 2020).…”