The Impact of Globalization on Wheat Purchase Prices in Ukraine in 2005-2021

Abstract

The main objective of the article is to assess the impact of globalization on wheat purchase prices in Ukraine. The following hypothesis was verified: the decisive factors shaping wheat purchase prices in Ukraine are the prices of this agricultural commodity in other countries. The research period covers the years 2005-2021. The variables were divided into two groups: (1) variables related to globalization (2) variables resulting from internal market functioning. At the first stage, Pearson's linear correlation was tested between wheat purchase prices in Ukraine and the assumed variables. Then, a multiple regression model was created to indicate which variables best explain the evolution of wheat purchase prices in Ukraine. The conducted research indicates that factors related to globalization are closely related to wheat purchase prices in Ukraine. Wheat purchase prices in Ukraine are best explained by the value of GDP per capita in Ukraine and the volume of wheat exports from Ukraine to third countries.