Agrarian Economy 2025 Т. 18 № 3-4: 67-73

DIVERSIFICATION AS A FACTOR IN INCREASING THE INVESTMENT ATTRACTIVENESS OF DEPRESSED RURAL COMMUNITIES

Voronyі I., Candidate of Economic Sciences (PhD), Associate Professor
ORCID ID: 0000-0002-0713-6424
Ivanitskyі I., Candidate of Economic Sciences (PhD), Associate Professor
ORCID ID: 0000-0001-8857-257X
Stepan Gzhytskyi National University of Veterinary Medicine and Biotechnologies Lviv

https://doi.org/10.31734/agrarecon2025.03-04.067

ANNOTATION

The article substantiates the need for diversification of production in depressed rural communities as a factor in increasing their investment attractiveness at the current stage of development of agrarian territories in Ukraine. The study outlines the potential impact of diversification on increasing the resilience of communities to internal and external challenges, diversifying possible sources of income from activities, and improving the infrastructure and quality of life of rural families.

The authors investigate the concept of depressed rural communities, their key features, causes of occurrence and socio-economic consequences of such a situation, and indicate the need to create appropriate conditions for overcoming the depressive state of individual rural areas. Attention is focused on studying the relationship between the deepening depression of rural communities and the challenges of martial law in the country.

The necessity of establishing a diversified agricultural sector within the economy is highlighted as a means to reduce the reliance on the narrow specialization of farmers. This strategy aims to create new job opportunities, partially address the demographic crisis, foster social stability within communities, and enhance revenue for local budgets.

Potential avenues for sustainable development in struggling rural communities in the post-war era have been examined, focusing on infrastructure improvement, investment attraction, decentralization, support for local self-governance, and the introduction of innovative practices in agriculture. The state’s role in promoting economic resurgence and social stability in rural areas is critically assessed.

KEYWORDS

depression, rural communities, sustainable development, diversification, investment attractiveness

FULL TEXT

LINK

  1. Chornobai, L. & Mushenyk, M., 2025. Diversification as a tool for ensuring integrated development of rural areas. Podillia Bulletin: Agriculture, Engineering, Economics, 46, pp. 200–204.
  2. Hrymak, O., Vovk, M. & Dzhura, V., 2017. Prospects for the development of agritourism in the Carpathian region. Scientific Bulletin of Stepan Gzhytskyi National University of Veterinary Medicine and Biotechnologies Lviv. Series: Economic Sciences, 19 (81), pp. 114–117. DOI: https://doi.org/10.15421/nvlvet8120
  3. Korinets, R., 2023. Rural development: a handbook for specialists in agricultural and rural development of territorial communities. Kyiv: [Publisher].
  4. Kulish, I., Hrymak, O., Chemerys, V. & Voronyi, I., 2020. State policy for rural development under conditions of limited natural resources (the case of Japan). Scientific Bulletin of Stepan Gzhytskyi National University of Veterinary Medicine and Biotechnologies Lviv. Series: Economic Sciences, 95 (22), pp. 38–44.
  5. Pavlikha, N. V. & Khomiuk, N. L., 2020. Diversified development of rural areas in the context of decentralization. Administrative-territorial vs economic-spatial boundaries of regions. Proceedings of the International Scientific and Practical Conference [Danylyshyn, B. M. (ed.)], 19–20 March 2020. Kyiv: Kyiv National Economic University named after Vadym Hetman, pp. 394–398.
  6. Tomashuk, I., 2018 Investment potential of rural areas: key aspects of development. Sustainable Economic Development, 1 (38), pp. 140–149 [online] Available at: https://www.economdevelopment.in.ua/index.php/journal/article/view/200 [Accessed November 18, 2025].
  7. Tsvihun, I. A., 2021. Key aspects of rural area depressiveness. Podillia Bulletin: Agriculture, Engineering, Economics, 34, pp. 146–152.
  8. Ushakova, K. V. & Sakharnatskyi, V. V., 2022. Mechanism for stimulating rural development and possibilities of its implementation in Ukraine. Balanced Nature Use, 3, pp. 59–69.
  9. Yasinetska, I. & Mushenyk, M., 2021. Strategic priorities and objectives of investment support for regional development in Ukraine. Podillia Bulletin: Agriculture, Engineering, Economics, 34, pp. 153–165.
  10. Zinchuk, T. O. & Kutsmus, N. M., 2018. Business diversification in rural areas: international experience. Economics of AIC, 4, pp. 19–27.