A Modern Model of United Territorial Communities as a Factor of Business Development in Rural Areas: European-Ukrainian Realities
Zinchuk T. O., Patynska-Popeta M. M.

Zinchuk, Tetiana O., and Patynska-Popeta, Maryna M. (2020) “A Modern Model of United Territorial Communities as a Factor of Business Development in Rural Areas: European-Ukrainian Realities.” The Problems of Economy 2:111–118.
https://doi.org/10.32983/2222-0712-2020-2-111-118

Section: Economics and national economy management

UDC 352/353.071(477) (094)

Abstract:
The purpose of the article is to investigate and describe the main trends in business development in rural areas in the context of Ukraine’s European integration prospects; identify the conditions, directions, and tools for setting up a rural business. Modern problems of Ukraine’s rural areas are characterized. It is proved that increasing the efficiency of the agricultural sector is a key factor for strengthening the economic potential of territorial communities. Main positive trends in the export of agricultural products of Ukraine, their impact on business development in rural areas are analyzed. The priority measures for innovative development of the agri-food sector are highlighted. Attention is focused on elaboration of alternative schemes for organizing rural development, which ensures diversification of employment and sources of income. The types of non-agricultural employment in rural areas are presented. The conditions, promising areas, tools for creating and developing business in rural areas are determined with regard to European practices. The need for stimulating local initiatives to unleash the potential of agricultural production and business, in order to fully use favorable for Ukraine conditions in the world agricultural market, is substantiated. It is argued that positive changes in the development of rural areas of Ukraine can be achieved by investing in innovation, support for business, human capital. Using the example of activities of united territorial communities (UTC) of Zhytomyr region, a system of measures for business development in rural areas is presented.

Keywords: agricultural sector, business, united territorial communities (UTC), rural areas, sustainable development, EU Common Agricultural Policy (CAP), Deep and Comprehensive Free Trade Area (DCFTA).

Fig.: 2. Tabl.: 2. Bibl.: 23.

Zinchuk Tetiana O. – Doctor of Sciences (Economics), Professor, Head of the Department, Department of International Economic Relations and European Integration, Polissia National University (7 Staryi Blvd, Zhytomyr, 10008, Ukraine)
Email: zintshuk@gmail.com
Patynska-Popeta Maryna M. – Postgraduate Student, Department of International Economic Relations and European Integration, Zhytomyr National Agroecological University (7 Staryi Bivd., Zhytomyr, 10008, Ukraine)
Email: marypat@ukr.net

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