ASSESSMENT OF THE ROLE OF ENTERPRISES IN THE WESTERN REGION IN THE DEVELOPMENT OF AGRO-PROCESSING IN UKRAINE IN THE CONTEXT OF NEGATIVE EXTERNALITIES

Abstract

The article is aimed at assessing the role of enterprises in the Western region in the development of agro-processing in Ukraine in the face of negative externalities by studying the main indicators of personnel use, productivity and profitability. The results of the study allow us to draw a number of conclusions. After the destruction of many extractive and processing industries in the East and South of Ukraine as a result of the war in Ukraine, the role of the agricultural sector in the Western region in the development of the national economy has now increased significantly. Agroprocessing companies in the Western region provide high growth rates of personnel costs at the national level, but on average spend 19-23% less on labour costs and social measures than agroprocessing companies in Ukraine as a whole. In terms of labour productivity, agro-processing companies in the Western region show relatively higher average growth rates than in Ukraine as a whole. However, in absolute terms, this figure is 20-35% higher in Ukraine as a whole, although the gap is constantly decreasing. Agri-processing companies in the Western region provide relatively higher levels of profitability than in Ukraine as a whole. They also have relatively higher average annual growth rates. However, during the pandemic, some regions made unprofitable sales of products (goods and services). To ensure the further sustainable development of agro-processing companies in the Western region, it is important that their owners ensure accelerated growth in personnel costs, increase employee productivity, and maintain a high level of profitability of sales of products (goods and services).