Financial Instruments that Ensure Food Market Sustainability

Journal title RIVISTA DI STUDI SULLA SOSTENIBILITA'
Author/s Vali Valiyev, Volodymyr Shevchuk, Lyudmila Shtefan, Halyna Riabenko, Olena Zhuravel
Publishing Year 2025 Issue 2025/1
Language English Pages 18 P. 71-88 File size 0 KB
DOI 10.3280/riss2025oa19463
DOI is like a bar code for intellectual property: to have more infomation click here

View article Download Open Access article

FrancoAngeli is member of Publishers International Linking Association, Inc (PILA), a not-for-profit association which run the CrossRef service enabling links to and from online scholarly content.

The aim of the research was to study financial instruments ensuring the food market sustainability in the face of economic and environmental challenges. The research employed the following methods: SWOT analysis, econometric, correlation, and regression analysis. The analysis of investment in agricultural technologies showed a significant increase in interest in innovations, in particular in response to global challenges, such as climate change. In particular, the use of IoT in agriculture has contributed to an increase in the yield of major crops such as wheat, corn, and soybeans. The study found that the use of financial instruments, such as grants, technical assistance, loan guarantees and equity investments, effectively reduces financial risks. A promising direction for further research is to study in more detail the effectiveness of the use of mixed financial instruments for the sustainable development of the agricultural sector.

Keywords: ; agricultural finance; financial instruments; credit guarantees; food security; market sustainability; agricultural technology

  1. Alharbi S., Mamun A., Boubaker S. and Rizvi S. (2023). Green finance and renewable energy: A worldwide evidence. Energy Economics, 118, 106499. DOI: 10.1016/j.eneco.2022.106499.
  2. Abhilash S.S., Shenoy D.K., Shetty Lumen S. L. and Subrahmanya K.N. (2023). Green bond as an innovative financial instrument in the Indian financial market: Insights from systematic literature review approach. SAGE Open, 13(2). DOI: 10.1177/21582440231178783.
  3. Agrawal R., Agrawal S., Samadhiya A., Kumar A., Luthra S. and Jain V. (2023). Adoption of green finance and green innovation for achieving circularity: An exploratory review and future directions. Geoscience Frontiers (in press), 15(4), 101669. DOI: 10.1016/j.gsf.2023.101669.
  4. Ahmed D., Hua H. and Bhutta U. (2024). Innovation through green finance: A thematic review. Current Opinion in Environmental Sustainbility, 66, 101402. DOI: 10.1016/j.cosust.2023.101402.
  5. Ashiq S., Akbar A., Farooq K. and Mujtaba H. (2022). Sustainable improvement in engineering behavior of Siwalik Clay using industrial waste glass powder as additive. Case Studies in Construction Materials, 16, e00883. DOI: 10.1016/j.cscm.2022.e0088.
  6. Bazaluk O., Yatsenko O., Zakharchuk O., Ovcharenko A., Khrystenko O. and Nitsenko V. (2020). Dynamic development of the global organic food market and opportunities for Ukraine. Sustainability (Switzerland), 12(17). DOI: 10.3390/SU12176963.
  7. Cao H., Guo L. and Zhang L. (2020). Does oil price uncertainty affect renewable energy firms’ investment? Evidence from listed firms in China. Finance Research Letters, 33, 101205. DOI: 10.1016/j.frl.2019.06.003.
  8. Chen K. and Bian R. (2023). Green financing and renewable resources for China’s sustainable growth: Assessing macroeconomic industry impact. Resources Policy, 85, 103927. DOI: 10.1016/j.resourpol.2023.103927.
  9. Deng Z., Song S., Jiang N. and Pang R. (2023). Sustainable development in China? A nonparametric decomposition of economic growth. China Economic Review, 81, 102041. DOI: 10.1016/j.chieco.2023.102041.
  10. EU (2021-2027). EU agricultural policy. -- Text available at the website https://europa.eu/european-union/law (Date accessed: 19 January 2025).
  11. FAO, UNDP and UNEP (2021). A multi-billion-dollar opportunity – Repurposing agricultural support to transform food systems. DOI: 10.4060/cb6683en.
  12. FAO (2021). The state of food security and nutrition in the world. -- Text available at the website https://www.fao.org/interactive/state-of-food-security-nutrition/2021/en/ (Date accessed: 19 January 2025).
  13. Giannetti B., Fonseca T., Agostinho F., Santos L. and Almeida C. (2023). How has the sustainability of countries changed after COVID-19? Evidence from the pandemics’ first year. Science of the Total Environment, 855, 158766. DOI: 10.1016/j.scitotenv.2022.158766.
  14. Guo M., Pang D. and Dong J. (2024). Promoting green growth: Resource management and reosurce efficiency in East Asian and Pacific economies. Resources Policy, 90, 104705. DOI: 10.1016/j.resourpol.2024.104705.
  15. Hua M., Li Z., Zhang Y. and Wei X. (2024). Does green finance promote green transformation of the real economy?. Research in International Business and Finance, 67(Part B), 102090. DOI: 10.1016/j.ribaf.2023.102090.
  16. Humeniuk M., Nemish D., Balaniuk I. and Shelenko D. (2021a). Main factors of effective functioning of small agricultural business. Bulletin of Agricultural Science, 9(822): 80-88. DOI: 10.31073/agrovisnyk202109-11.
  17. Humeniuk М., Shelenko D., Nemish D. and Balaniuk I. (2021b). Improving the efficiency of agricultural entrepreneurship by processing rapeseed to biodiesel. Scientific Papers. Series “Management, Economic Engineering in Agriculture and Rural Development”, 21(3): 431-438. -- Text available at the website https://cutt.ly/RwUGkc5 (Date accessed: 19 January 2025).
  18. Ivashkiv I., Kupalova H., Goncharenko N., Andrusiv U., Streimikis J., Lyashenko O., Yakubiv V., Lyzun M., Lishchynskyi I. and Saukh I. (2020). Environmental responsibility as a prerequisite for sustainable development of agricultural enterprises. Management Science Letter, 10: 2973-2984. -- Text available at the website https://m.growingscience.com/beta/msl/3940-environmental-responsibility-as-a-prerequisite-for-sustainable-development-of-agricultural-enterprises.html (Date accessed: 19 January 2025).
  19. Moldavan L., Pimenowa O., Wasilewski M. and Wasilewska N. (2023). Sustainable development of agriculture of Ukraine in the context of climate change. Sustainability, 15, 10517. DOI: 10.3390/su151310517.
  20. Mustafa J. Ali, Marei A., Al-Amarneh A. and Al-Abbad A. (2023). The role of fintech payment instruments in improving financial inclusion. Information Sciences Letters, 12(6): 2659-2670. DOI: 10.18576/isl/120637.
  21. Ostapenko S. (2021). Theoretical approaches to economic principles formulation regarding state regulation of the agricultural sector in ukraine. Efektyvna Ekonomika, 11. DOI: 10.32702/2307-2105-2021.11.200.
  22. Shelenko D., Diuk A. and Matsola M. (2023). State regulation of agricultural business development in the conditions of systemic security challenges. Economy and Society, 56. DOI: 10.32782/2524-0072/2023-56-67.
  23. Shi, Y. and Yang, B. (2025). Green finance instruments and empowering sustainability in East Asian economies. Humanities and Social Sciences Communications, 12: 11. DOI: 10.1057/s41599-024-04324-3.
  24. Shpykuliak О., Shelenko D., Alieksieieva O., Ksenofontova K. and Sukhovii A. (2022). The role of the market and entrepreneurship in ensuring the sust ainabledevelopment of rural areas. Ahrosvit, 20: 3-12. DOI: 10.32702/2306-6792.2022.20.3.
  25. Sumets A., Kniaz S., Heorhiadi N., Skrynkovskyy R. and Matsuk V. (2022). Methodological toolkit for assessing the level of stability of agricultural enterprises. Agricultural and Resource Economics, 8(1): 235-255. DOI: 10.51599/are.2022.08.01.12.
  26. Tahiri-Jouti A. (2022). Financial instruments and cash waqf: Bridging Islamic finance with sustainable development goals. Casablanca: Palgrave Macmillan. DOI: 10.1007/978-3-031-04337-6.
  27. Tsimoshynska O., Koval M., Kryshtal H., Filipishyna L., Arsawan W. E. and Koval V. (2021). Investing in road construction infrastructure projects under public-private partnership in the form of concession. Naukovyi Visnyk Natsionalnoho Hirnychoho Universytetu, 2: 184-192. DOI: 10.33271/nvngu/2021-2/184.
  28. UNCTAD (2022). Investment trends in agriculture and agri-tech: Global overview. -- Text available at the website https://unctad.org/publication/world-investment-report-202 (Date accessed: 19 January 2025).
  29. USDA (2024). USDA annual report 2024. Text available at the website -- https://www.usda.gov/sites/default/files/documents/fy-2024-agency-financial-report.pdf (Date accessed: 19 January 2025).
  30. Varnalii Z. S. (2020). Economic and financial security of Ukraine in the context of globalization: monograph. Kyiv: Knowledge of Ukraine. -- https://odnb.odessa.ua/vnn/book/7919.
  31. Wattel C., Negede B., Desczka S., Pamuk H. and van Asseldonk M. (2023). Finance for low-emission food systems, White paper for the CGIAR Research Initiative on Low-Emission Food Systems. In: Wageningen Economic Research, Report. Wageningen (Netherlands): Wageningen University and Research. -- Text available at the website https://cgspace.cgiar.org/server/api/core/bitstreams/46a1b46e-e4ea-46dc-9bc4-12ff8921a67d/content (Date accessed: 19 January 2025).
  32. World Bank (2024). World Bank’s annual report on agriculture and rural development. -- Text available at the website https://www.worldbank.org/en/about/annual-report (Date accessed: 19 January 2025).
  33. World Resources Institute (2021). Ecosystem services and agricultural land restoration. -- Text available at the website https://portals.iucn.org/library/taxonomy/term/35577 (Date accessed: 19 January 2025).

Vali Valiyev, Volodymyr Shevchuk, Lyudmila Shtefan, Halyna Riabenko, Olena Zhuravel, Financial Instruments that Ensure Food Market Sustainability in "RIVISTA DI STUDI SULLA SOSTENIBILITA'" 1/2025, pp 71-88, DOI: 10.3280/riss2025oa19463