GROWTH OF INCOME OF HOUSEHOLDS AS A NECESSARY CONDITION FOR POSITIVE CHANGES IN ECONOMIC BEHAVIOR OF AGRICULTURAL ENTERPRISES

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GROWTH OF INCOME OF HOUSEHOLDS AS A NECESSARY CONDITION FOR POSITIVE CHANGES IN ECONOMIC BEHAVIOR OF AGRICULTURAL ENTERPRISES

Journal Title: Сталий розвиток економіки - Year 2017, Vol 35, Issue 2

Abstract

Purpose is to argue ways to increase income of households as a factor of positive changes in economic behavior of agricultural enterprises. Methodology of research. The research is based on application of general scientific and specific methods of scientific researches. The author relies on theoretical and methodological fundamentals, developed by the national and foreign economic school. According to the requirements of dialectic method, changes in economic behavior of agricultural enterprises is considered as a result of their interaction with the environment, particularly with households. Application of calculation-constructive method supplies actual assessments of the level of population income, comparing to the minimum living wage. The author also concerns requirements of normative method in terms of officially defined standards of food products consumption per one person. Having applied the method of focus groups formation, the research defined the group of households, having the highest income level, made comparison of the value of their income with the standard ones. Performing of corresponding calculations was based on application of economic-statistical methods, particularly methods of absolute, relative and average values. Findings. The research presents theoretical aspects of dependency between the level of income of households and economic behavior of agricultural enterprises. The author made calculations of the cost of living and a minimum wage with application of a normative content of the minimum consumer basket and minimum prices for food products. Basing on the calculations of the rational consumer basket, the research defines a necessary level of household income. Having achieved the level of income, one can expect positive changes in economic behavior of agricultural enterprises. There are three determined groups of factors to increase income level of households, i.e. elimination of “holes”, causing money flow out of the economy; measures of macro- and microeconomic character. Originality. The necessary level of household incomes is substantiated, which will allow for positive changes in the economic behavior of agricultural enterprises. Practical value. The obtained results of the research determine the high level of dependence of economic behavior of agricultural enterprises on the level of household incomes. With this in mind, public authorities and local governments should develop a set of measures to raise wages, improve the conditions for the development of diverse forms of business in order to ensure the growth of incomes.

Authors and Affiliations

Luydmуla Petryshyn

Keywords

EP ID EP327795
DOI -
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