Influence of tax burden on economic development of agricultural enterprises in Ukraine

Abstract

This article is devoted to the study of the impact of the various taxes on the economic development of Ukrainian agricultural enterprises and the identification of promising growth directions based on the optimization of the tax burden. The authors refine the traditional two-factor of Cobb-Douglas production function by incorporating economic factors. A four-factor production-institutional function of Ukraine agricultural enterprises has been constructed, which allows econometric parameters to be calculated and the functioning of the industry to be evaluated. The patterns of interaction of the tax burden and economic growth of Ukraine agricultural enterprises are revealed. The operation of the econometric parameters of the domestic agrarian enterprises is calculated. It allows determining the first and second order of Laffer points, maximum productivity of each factor, and elasticity of replacement of one factor by another. These parameters determine production volumes and tax revenues at different levels of the industry tax burden. It is established that the main driving force for promoting the economic growth of agricultural production is worker wages. It is proved that the optimization of the tax weight on agricultural enterprises makes it possible to release additional capita resource to increase the volume of agricultural production and increase tax revenues.