THE ROLE OF HUMAN CAPITAL IN THE MODERNISATION OF THE AGRICULTURAL SECTOR OF THE UKRAINIAN ECONOMY
Abstract
The role of human capital in the context of modernization of the agricultural sector of Ukraine's economy is determined. The study of theoretical sources allowed to identify the main components of human capital - knowledge and skills; biological, psychological and social factors. It is established that the demographic situation in Ukraine has a negative impact on the formation of human capital in agriculture. In addition, external and internal migration, which arose as a result of full-scale military operations on the territory of Ukraine, is critical. This has had a negative impact on the availability and efficiency of labor resources in the agricultural sector. Over the past ten years, there has been a steady downward trend in the number of labor resources employed in agricultural production in Ukraine. At the same time, labor productivity in agriculture has increased significantly over this period, due to both a decrease in the number of people employed in the industry and a parallel increase in the value of agricultural products at constant prices. It is established that the size of wages has a significant impact on human potential. It is determined that in the agricultural sector of the country's economy, the growth rate of the average monthly nominal wage of an employee exceeds the growth rate of his or her labor productivity. This can lead to an increase in costs in the industry and, as a result, to a decrease in profitability. The article proves the close relationship between the quality of human capital and educational and scientific factors. Over the past decade, Ukraine has had an extremely small share of R&D expenditures compared to other countries in the world; in 2019, this figure was almost five times lower than in the EU. In the European Union, the main source of funding for these costs is the business sector, while in Ukraine it is the public sector. In modern conditions, due to a combination of objective and subjective factors, very little attention is paid to the development of human capital in agriculture, which negatively affects the modernization of the industry. The study is of practical importance for the formation of human potential in the context of modernization of the agricultural sector of the economy.
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