Economic Mechanism of State Regulation of the Investment Activity in Agriculture

The main task of the state investment strategy in the development of agriculture is to form an effective policy of state promotion of investment in the agricultural sector, which will increase the level of investment attractiveness of the farm sector. Given the study's relevance, the article aims to justify the feasibility of introducing an economic mechanism of state regulation of investment activities in agriculture by combining the levers of state regulation with financial instruments of banking institutions. The study's goals were solved using the following general scientific methods: synthesis and analysis, economic statistics, systematization, theoretical generalization, and abstraction. The information base was the work of domestic and foreign scientists, analysts, practitioners, and statistics of the State Statistics Service of Ukraine. In the article, the authors propose a model of financing investment activities based on the principles of attracting private (bank) capital. The structural and logical interpretation of the state budget savings from the introduction of the recommended financial support model for agricultural producers' investment activities is given. Based on a sample of indicators for 2010-2020, a multi-factor regression model of the dependence of Ukraine's GDP in agriculture on the factors of development of investment activity in agriculture ("the volume of investment in agriculture" and "expenditures to support state regulators of the agricultural sector"). To check the quality of the constructed model, the multiple correlation coefficient (R-squared), the test for heteroskedasticity of model residues (t-statistics), and the probability of error P(t) were determined. The student's t-test was calculated to assess the statistical significance of the correlation coefficient, and Fisher's F-test was used to test the effectiveness of the regression model. The change of GDP of Ukraine in agriculture for 2021-2024 under the conditions of state regulation of parameters of investment development in agriculture is forecasted. The proposed economic mechanism and tools for implementing the main strategic guidelines for further development of investment activities in agriculture of Ukraine is a prerequisite for determining the aid to promote this process at the local level by local governments and civil society organizations.