The purpose of the study is to find areas, effective socio-economic mechanisms of rural development, and intensity of the impact made by the agricultural cooperatives on indices of sustainable development of rural communities. The study hypothesizes that the establishment of the agricultural cooperative in rural communities does not only contribute to economic development but also has a positive impact on social capital growth in communities. It leads to the more sustainable development of these territorial communities. In particular, the growth of social capital should cause a reduction in tax evasion, green agricultural production, etc.

The science-based proofs of the positive impact of agricultural cooperatives on the sustainable development of local communities will contribute to the policy advocacy to support the development of the agricultural cooperative, including that at the local community budget’s expense.

Key words:

Agricultural cooperative; sustainable development; ecology; socio-economic development; rural community.

Multidisciplinary research team composition:

Yuriy Petrushenko (main coordinator) – Sumy State University, Head of the Chair of International Economic Relations, Doctor of Economics, Professor.

Jiří Hejkrlík (co-researcher) – Czech University of Life Sciences Prague, Vice-dean of Faculty of Tropical AgriSciences Department of Economics and Development, leader of the Cooperative Research Group, Ph.D.

Victoria Ivchenko (co-researcher) – Sumy National Agrarian University, Ecologist, Ph.D., Ass. Prof.

Oksana Ponomarenko (co-researcher) – Sumy State University, Ph.D.-Student of the Economy specialization.