SPECIFIC IMPACT OF AGRIBUSINESS ON REGIONAL SUSTAINABLE DEVELOPMENT

Abstract

The article substantiates the relevance of sustainable development in modern business settings. The study provides calculation of indices of economic, environmental and social sustainability of regions in the 2017–2019 period along with suggesting an algorithm for a multifactor dynamic regression modeling method application. Within the scope of this research, the impact of agribusiness companies’ performances on economic, environmental and social sustainability of regions has been measured to integrate them as the key elements of aggregated indices of regional sustainable development. The greatest influence among the studied indicators on the economic, ecological and social sustainability of the region was revealed. To attain the research agenda, a methodological approach based on the calculation of indices and growth rates for relevant economic, social and environmental indicators has been employed. The findings reveal that the greatest impact on regional economic sustainability have the following indicators: total output of roots, tubers, vegetables and cucurbits produced by food manufacturing companies of all categories; the crop area for harvesting grain and grain legumes; total output of industrial crops; the area for forage crops harvesting. The greatest impact on environmental regional sustainability is attributed to the following indicators: the crop area for harvesting roots, tubers, vegetables and cucurbits; the area where the pesticides were applied. The greatest impact on social regional sustainability among all indicators under study has been demonstrated by the output of grain and grain legumes and the crop area for harvesting industrial crops. Based on the research findings, in the context of agribusiness strategic planning, the study provides a reasoned argument as to the critical need to adhere to the basic principles of sustainable development to ensure further socioeconomic growth in rural areas.