Financial mechanism of state land regulation in Ukraine
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DOIhttp://dx.doi.org/10.21511/afc.01(1).2017.02
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Article InfoVolume 1 2017, Issue #1, pp. 15-22
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The paper is devoted to research of existing variants of land reform in Ukraine towards cancelling the moratorium on the sale-purchase of agricultural lands. The authors prove that the financial function of the land is realized insufficiently, which is connected with the absence of open land market and ineffective functioning of state land regulation financial mechanism. The aim of the paper is to substantiate the directions of state land regulation in Ukraine on the basis of evaluating the economic effect of cancelling the moratorium on the sale-purchase of agricultural lands. The authors analyzed three most likely variants of land reform at the current stage of Ukraine’s economy development, and calculated economic effect from its implementation. Based on the calculations, conclusion is made about the feasibility of gradually cancelling the moratorium, which corresponds to third variant under study, which is offered to be implemented in two stages: 1) sale of state and community lands; 2) sale of private lands. Economic effect of implementing such a variant, calculated by the authors, gives a possibility to create additional annual cash flow to local budgets in the amount of 68-83 %, which is more than the revenue of other variants described in the paper. It is proven that for possibility to put the variant offered into practice, it is necessary to observe some prerequisites (organizational, financial, legal and regulatory), valuation of which enabled to offer the directions to improve state land regulation, the realization of which would favor the full functioning of agricultural land market.
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JEL Classification (Paper profile tab)R52, Q15
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References21
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Tables3
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Figures2
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- Fig. 1. Financial mechanism of state land regulation
- Fig. 2. Expected price of 1 hectare of agricultural land after cancelling the moratorium
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- Table 1. Dynamics of land resources in 2006 and 2012-2016 years
- Table 2. Calculation of economic benefit of continued implementation options (cancel) the moratorium on the sale-purchase of agricultural land
- Table 3. The average price of 1 hectare of land resources in foreign countries
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