Issue №: 1 (71)
The journal deals with the issues of efficiency of functioning of the national economics and organizational forms of management of the national economy. Attention is paid to the problems of marketing, management and efficiency of production and economic activity of agrarian enterprises. The issues of public administration and administration, accounting and taxation, banking and insurance, forecasting and modeling of economic processes, foreign economic activity, commodity flows of economic entities and their infrastructure support.
THE IMPACT OF MONETARY POLICY ON THE GRAIN MARKET CONJUNCTURE AND THE FINANCING STRATEGY OF AGRICULTURAL PRODUCERS IN UKRAINE AND THE U.S.A.
MAKOHON Vitaliy – Candidate of Economic Sciences, Associate Professor, Associate Professor of the Department of Finance, Banking, and Insurance, State Biotechnology University (61002, Khvarkiv, 44 Alchevskikh Str., e-mail: witmak.ua@gmail.com).
ZABOLOTNYI Denys – Postgraduate Student of the Second Year of Study of the Department of Finance, Banking and Insurance State Biotechnology University (61002, Khvarkiv, 44 Alchevskikh Str., e-mail: den.zabolotnyi@gmail.com).
The modern transformation of global financial markets and the increasing volatility of the agricultural sector highlight the need to study the relationship between monetary policy and agricultural commodity prices. In particular, interest rate instability and inflation expectations in Ukraine and the U.S. significantly influence wheat price formation, which is crucial for determining the effective financial strategies for agricultural producers. The purpose of this study is to identify the nature and magnitude of the impact of monetary policy instruments on wheat price dynamics in Ukraine and the U.S., both in the long-term and short-term, and to justify financial decisions for agribusiness enterprises based on the identified patterns. The study employs an autoregressive distributed lag model, enabling a differentiated analysis of both short-term and long-term relationships between variables. Unit root tests were applied to assess stationarity in time series, while graphical residual analysis and error correction model (ECM) specification were used to evaluate model stability. The research findings reveal the significant cross-country differences in how monetary indicators affect wheat prices. In the U.S., the long-term effect of interest rates is statistically significant and negative, confirming the restrictive role of monetary policy in curbing agricultural inflation. Conversely, in Ukraine, the relationship was less stable, with the short-term effects prevailing, driven by fragmented monetary policy and high dependence on external factors. Furthermore, the reaction of wheat prices to monetary policy shocks in the U.S. is faster and more predictable, whereas Ukraine exhibits inertia and delays in response. Calculated error correction coefficients confirm the existence of an equilibrium adjustment mechanism after short-term fluctuations, but only in the U.S. model. The practical significance of the study lies in providing an analytical framework for agribusinesses to make informed strategic decisions, particularly in investment planning, risk management, and monetary policy adaptation. The findings can also contribute to the development of macro-financial policies aimed at enhancing the resilience of the agricultural sector to monetary shocks.
1. Huylenbroeck, G., Vandermeulen, V., Mettepenningen, E., & Verspecht, A. (2014). Multifunctionality of agriculture: A review. Journal of Agricultural Economics, 65 (2), 431–451. DOI: https://doi.org/10.1111/jae.12056 [in English].
2. FAO. Ukraine: Food security and agricultural livelihoods assessment (December 2023) – Monitoring report. Rome: Food and Agriculture Organization of the United Nations, 2023. fscluster.org. Retrieved from: https://fscluster.org/sites/default/files/2024-06/cd1128en_1.pdf [in English].
3. Barry, P.J., & Ellinger, P.N. (2012). Financial management in agriculture. 7th ed. New Jersey, USA: Pearson Education [in English].
4. Pesaran, M.H., Shin, Y., & Smith, R.J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16 (3), 289–326. DOI: https://doi.org/10.1002/jae.616 [in English].
5. Pesaran, M.H., & Shin, Y. (1999). An autoregressive distributed lag modelling approach to cointegration analysis. Econometrics and Economic Theory in the 20th Century: The Ragnar Frisch Centennial Symposium. Cambridge, England: Cambridge University Press, 371–413. DOI: https://doi.org/10.1017/CCOL521633230.011 [in English].
6. Karri, H.K., Al Hizami, M.Z., Al Ghafri, S.A., & Al Kindi, A.M. (2021). Impact of macroeconomic variables on stock market volatility: A study of GCC stock markets. American Journal of Multidisciplinary Research & Development, 3 (3), 13–21 [in English].
7. Yang, Y., Guo, J., & He, R. (2023). The asymmetric impact of the oil price and disaggregate shocks on economic policy uncertainty: Evidence from China. SAGE Open, 13 (2). DOI: https://doi.org/10.1177/21582440231179636 Retrieved from: https://journals.sagepub.com/doi/10.1177/21582440231179636 [in English].
8. Chirwa, T.G., & Odhiambo, N.M. (2016). What drives long-run economic growth? Empirical evidence from South Africa. International Economics, 69 (4), 425–452. DOI: https://doi.org/10.14689/iei.2016.69.4.425 [in English].
9. Morozova, A., & Khmil, V. (2023). Kraftove vyrobnytstvo v Ukraini: sut ta shliakhy prosuvannia. Oblik i finansy, 3 (101), 107–113. DOI: https://doi.org/10.33146/2307-9878-2023-3(101)-107-113 [in Ukrainian].
10. Stephens, H.M., & Deskins, J. (2018). Economic Distress and Labor Market Participation. American Journal of Agricultural Economics, 100 (5), 1336–1356. DOI: https://doi.org/10.1093/ajae/aay065 [in English].
11. Yadav, I.S., & Goyari, P. (2024). The effects of financial development on crop productivity: ARDL evidence from Indian agriculture. Journal of Financial Economic Policy, 17 (4), 512–540. DOI: https://doi.org/10.1108/JFEP-05-2023-0126 [in English].
12. Mohanty, S., Meyers, W.H., & Smith, D.B. (1999). A reexamination of price dynamics in the international wheat market. Canadian Journal of Agricultural Economics, 47 (1), 21–29. DOI: https://doi.org/10.1111/j.1744-7976.1999.tb00213.x [in English].
13. Nazlioglu, G., Erdem, C., & Soytas, H. (2013). Volatility spillover between oil and agricultural commodity markets. Energy Economics, 36, 658–665. DOI: https://doi.org/10.1016/j.eneco.2012.11.009 [in English].
14. Roberts, J.M. (2019). Monetary policy and agricultural markets: Resilience in the age of QE: Federal Reserve Discussion Paper. federalreserve.gov. Retrieved from: https://www.federalreserve.gov/publications/2019-ar-monetary-policy.htm [in English].
15. Acosta, A., Ihle, R., & von Cramon-Taubadel, S. (2019). Combining market structure and econometric methods for pricetransmission analysis. Food Security, 11, 941–951. DOI: https://doi.org/10.1007/s12571-019-00951-w [in English].
16. Saghaian, S.H., Reed, M.R., & Marchant, M.A. (2002). Monetary impacts and overshooting of agricultural prices in an open economy. Agricultural Economics, 84 (1), 90–103 [in English].
17. Harri, A., & Hudson, B. (2009). Mean and variance dynamics in agricultural commodity prices: The role of macroeconomic factors. Applied Economics, 41 (3), 327–336 [in English].
18. International Monetary Fund. imf.org. Retrieved from: https://www.imf.org/ [in English].
19. The OECD (Organisation for Economic Co-operation and Development). oecd.org. Retrieved from: https://www.oecd.org/ [in English].
About journal
051 Economics
071 Accounting and taxation
072 Finance, banking and insurance
073 Management
075 Marketing
076 Business, trade and exchange activities
241 Hotel, restaurant and catering
281 Public administration
The journal “Economy, finances, management: Topical issues of science and practice” is included in the "List of Scientific Professional Editions of Ukraine".
The scientific edition is assigned the Category "Б" in the field of economics in specialties 051, 071, 072, 073, 075, 076, 241, 281
(Order of the Ministry of Education and Science of Ukraine No. 249, March 17, 2020).
The journal “Economy, finances, management: Topical issues of science and practice” has a Digital Object Identifier (DOI)
The journal “Economy, finances, management: Topical issues of science and practice” is indexed in such database as Index Copernicus Value (https://journals.indexcopernicus.com/search/form)
The editorial board of the journal is guided by the principles of scientific, objectivity, professionalism, informational support of the most significant innovative researches, observance of standards of publishing ethics.
The purpose of the journal "Economics, finances, management: Topical issues of science and practical activity» is the coverage of leading scientific ideas in the economic, financial and management activities of the sectors of the national economy and the involvement of representatives of the domestic and foreign scientific professional community.
Objectives of the journal:
- publication of research findings on innovation in the economy, financial and management spheres, innovation of production processes;
- expanding partnerships with international scientific publishing organizations;
- enhancing the culture of reviewing and annotating published material;
- adherence to editorial ethics.
Article publishing is a paid service. Cost for printing in professional publications in accordance with the Decree of the Cabinet of Ministers of Ukraine of August 27, 2010 No. 796 "On approval of the list of paid services that can be provided by state educational institutions, other institutions of the educational system belonging to state and communal ownership" and the order Rector of the Higher Education University Mazura VA dated March 14, 2018 No. 93 “On setting the cost of printing in professional editions of the University”.
The cost of printing one page in professional editions of the university is 60 UAH.
An additional copy of the magazine with the mailing list costs 450 UAH.
Recipient: Vinnytsia National Agrarian University MFO 820172 Current account No. 31256282102055 Code 00497236 Bank State Treasury Service of Ukraine, Kyiv. VAT payer code 004972302286. Registration number 100271744. Purpose of payment: for printing an article in the journal: ”Economy, finances, management: Topical issues of science and practical activity "
It was founded in 1997 under the name "Bulletin of the Vinnytsia State Agricultural Institute". In 2010-2014 he was published under the title “Collection of scientific works of Vinnitsa National Agrarian University”.
From 2015 ”Economy, finances, management: Topical issues of science and practical activity” (Certificate of State Registration of Mass Media No. 21154-10954 of PR as of December 31, 2014)
According to the decision of National Council of Television and Radio Broadcasting of Ukraine from 25.04.2024 No. 1337 the scientific journal «Economy, finances, management: topical issues of science and practical activity» has the ID of the Media R30-05171.
