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Decision making on the direction of investment in the development of separate parameters of agricultural equipment

Author

Listed:
  • Kitchenko Olena

    (National Technical University «Kharkiv Polytechnic Institute»)

  • Kuchina Svitlana

    (National Technical University «Kharkiv Polytechnic Institute»)

Abstract

The object of research is the process of self-financing, as a leading direction in the system of investment support for the development of business entities. One of the most problematic places in resolving this issue is prioritizing these investments. During the study, the statistical method is used to analyze and summarize statistical information and the methods of cluster analysis and k-means to classify the main groups of indicators of technical and operational and economic and marketing parameters for the use of agricultural machinery. As well as methods of matrix analysis and multidimensional spaces – for the positioning of enterprises and the rationale for the choice of investment areas. The paper proposes theoretical and methodological principles and conclusions, which together solve an important practical problem – the need to search for areas of investment in the development of individual parameters of agricultural machinery. The analysis of the state and characteristics of the activities of agricultural engineering enterprises of Ukraine is made. The necessity of breakthrough development of the machine-building sector of the agro-industrial complex is emphasized. It is noted that most of the Ukrainian enterprises producing agricultural machinery have outdated equipment, so they need re-equipment and significant financial injections. When classifying the priority areas of investment, it is found that agricultural machinery, which is now produced by Ukrainian engineering enterprises, needs to be completely changed. Therefore, a list of stages for the selection of areas for improving tractor equipment is proposed. The proposed approach to determining the priority of investing provides for the classification of quality indicators according to the priority of their improvement according to a certain algorithm. The investment areas are evaluated and it is established that the final decision on investing in the development of certain parameters of agricultural machinery can be made by improving only those indicators of a certain group that were obtained using clustering. Due to the simplicity of the proposed approach, it can be applied not only for agricultural engineering, but also for other enterprises of the economic complex of Ukraine. Compared with similar well-known approaches, its use will allow more accurate research and obtain the necessary data for targeted investment in the face of limited funds.

Suggested Citation

  • Kitchenko Olena & Kuchina Svitlana, 2020. "Decision making on the direction of investment in the development of separate parameters of agricultural equipment," Technology audit and production reserves, Socionet;Technology audit and production reserves, vol. 1(4(51)), pages 11-17.
  • Handle: RePEc:nos:ddldem:17
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    File URL: http://journals.uran.ua/tarp/article/view/198866
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    References listed on IDEAS

    as
    1. Wieliczko, Barbara, 2015. "Investment in machinery, equipment and means of transport in Polish agriculture, 2009-2012: example of FADN region 785 (Pomorze i Mazury)," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 117(1), pages 1-7, April.
    2. Ihor Vinichenko & Tetiana Shutko, 2019. "The Matrix Model For Assessing The Investment Attractiveness Of Agricultural Enterprises," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 5(3).
    3. Joleen C. Hadrich & Ryan Larsen & Frayne E. Olson, 2013. "Impact of the Section 179 tax deduction on machinery investment," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 73(3), pages 458-468, November.
    4. Sarah Anne Stutzman, 2017. "Differences across farm typologies in capital investment during 1996-2013," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 78(1), pages 41-64, November.
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    More about this item

    Keywords

    agribusiness; agricultural engineering; market segments; financing; product competitiveness; quality indicators;
    All these keywords.

    JEL classification:

    • D29 - Microeconomics - - Production and Organizations - - - Other
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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