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Essence of Investments Regarding to the Acquisition and Modernization of Agribusiness Property

Journal: Oblik i finansi (Vol.1, No. 81)

Publication Date:

Authors : ;

Page : 118-123

Keywords : investments; investment activity; capital investments; agro-industrial complex;

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Investments cause the growth of economic development, an increase in the real capital of the enterprise, which in turn increases the production potential of the economy. Therefore, ensuring effective investment activity of the enterprise is one of the key factors for the growth of the potential of business entities. Today, many questions regarding to the investments in acquisition and modernization of agribusiness property are debatable. The purpose of the article is to deepen the content of the concept of "investment" and "investment activity". The retrospective analysis of scientific approaches to the interpretation of the essence of investment by various economic schools and in different periods of history was carried out. It was revealed that there are many views on the nature of investment. In ancient times, investing meant confer, and was associated with obtaining certain preferences. In classical economic theory, investments were associated with capital and stocks, and investment with the receipt of value added. In Soviet times, with the administrative-command form of management, investments were associated with investments in fixed assets. Nowadays investments are closely related to the development of scientific and technological progress and the securities market. The historical aspects of the formation of the theory of investment and its change in connection with the transformation of economic processes were investigated. The connection of investment activity with the development of scientific and technological progress and the introduction of innovations was established. The difference between capital investments and investments was described. The main functions of investment in the socio-economic environment were summarized. It was determined that investment activity is the process of attracting all types of resources into agricultural entrepreneurial activity on an innovative basis in order to ensure the economic, environmental, social effects and development of rural areas.

Last modified: 2018-10-27 18:42:05