Economics and Business Management

Urban growth and agrarian dynamics: Evaluating the Kyiv agglomeration’s economic landscape

V. Nazarenko, A. Martyn
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Abstract

This study investigated the effects of rapid urban expansion on agricultural economic dynamics within the Kyiv agglomeration. The research analysed changes in land use, wage levels, enterprise output, and logistics infrastructure using a comprehensive dataset compiled from national land cadastre records, economic reports, and regional statistics prior to 2023. The results revealed significant pressure on agricultural territories: only 0.21% (0.18 thousand hectares) of land within the region was designated for agricultural use, compared to over 54% assigned to green zones and nearly 13% to residential categories. Concurrently, average monthly salaries in Kyiv’s food-processing industry reached 16,500 UAH, while agricultural wages in surrounding areas lagged at 14,000 UAH, influencing labour migration from rural to urban sectors. Moreover, transport costs – ranging from 20 to 250 UAH per kilometre depending on location and vehicle type – further impacted enterprise viability and spatial decision-making. A notable discrepancy in land rental rates was also evident: land within the Kyiv metropolitan core commanded rents of up to 25 million UAH per hectare per year, compared to an average of 3,474 UAH in the region. These factors contributed to the encroachment of farmland for residential, commercial, and industrial use. The study concluded that effective urban-rural land-use governance – through zoning regulations, fiscal incentives, and sustainable planning – was essential to safeguard agricultural viability and ensure balanced regional development amid Kyiv’s ongoing metropolitan growth. Findings from this research could inform strategic land-use planning, guide interventions to mitigate adverse impacts on agriculture and foster a more balanced urban-rural dynamic in rapidly evolving metropolitan regions

Keywords

urban expansion; agricultural economy; land-use change; metropolitan growth; socio-economic development; resource economics

Suggested citation
Nazarenko, V., & Martyn, А. (2025). Urban growth and agrarian dynamics: Evaluating the Kyiv agglomeration’s economic landscape. Economics and Business Management, 16(2), 24-41. https://doi.org/10.31548/economics/2.2025.24
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