Methodology for the assessment of geoeconomics potential of agriculture

Abstract

Agriculture has always played an important role in the country's economy. Its development and capacity were and is one of the factors of the population's security. That is why there is a need to develop a methodology that would assess the full geoeconomic potential of the country and determine whether the country still has unrealized potential in agriculture, or uses all opportunities for development in this area. The aim of the study is to substantiate the methodology for assessing the geoeconomic potential of the country’s agriculture taking into account its available resources and possibilities. The underlying procedure of the method consists in comparing the results of the use of common resources like land, labor, and capital by different countries. For this purpose, we used the method of the Data Envelopment Analysis (DEA) based on a comparative assessment of the efficiency indicators of the countries that have one specific feature in common. The DEA-analysis considers the result indicators per unit of resources used in agriculture. The efficiency indicators include indicators of economic, environmental and social effects. The target countries for assessment are selected regarding their similarity in terms of resource and political factors, as well as export specialization. The geoeconomic potential of Ukrainian agriculture has become a case study for practical approval of the assessment method. During the study, the following result were obtained: the geoeconomic potential of Ukraine and its competitors were assessed. It was concluded that Ukraine along with France and Spain fully use their geoeconomic potential. It was stated that in countries with the highest level of economic development is a highest level of environmentally destructive effect on the environment.