IMPACT OF COMMERCIAL AND INVESTMENT ACTIVITIES IN AGRICULTURE ON LOCAL DEVELOPMENT
DOI:
https://doi.org/10.5937/ekoPolj2002569DKeywords:
commercial activities in agriculture, investments in agriculture, agricultural subsidies, local development, SerbiaAbstract
The main idea in this paper was to investigate how agriculture and processing sectors are connected through commercial activity, and how they influence municipal economic development in transition economies. This was examined through the influence of relevant non-price structural factors related to agricultural and processing sector on the ratio between agricultural product procurement and overall agricultural production. The focus was placed on agricultural investments and subsidies. A multi regression model was developed based on hard data provided by SORS and SBRE on a municipal level in Serbia. The analysis confirmed the relation between agricultural commercial activity and municipal level of economic development. In addition, important findings concerning municipal investment and agricultural subsidies allocation have been provided as well.
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References
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27. Mogues, T., & Olofinbiyi, T. (2020). Budgetary influence under information asymmetries: Evidence from Nigerias subnational agricultural investments. World Development, 129, 104902. https://doi.org/10.1016/j.worlddev.2020.104902
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29. Nadarajan, S. V., & Ismail, R. (2011). E-Commerce framework to improve rural agriculture sector in Cambodia. International Conference on E-Business, Management and Economics, 25, 287–291.
30. Newman, C., & Tarp, F. (2019). Shocks and agricultural investment decisions. Food Policy, 101810. https://doi.org/10.1016/j.foodpol.2019.101810
31. Nganje, W. E., Bangsund, D. A., Leistritz, F. L., Wilson, W. W., & Tiapo, N. M. (2004). Regional Economic Impacts of Fusarium Head Blight in Wheat and Barley. Review of Agricultural Economics, 26(3), 332–347. https://doi.org/10.1111/j.1467-9353.2004.00183.x
32. Paarlberg, P. L., & Abbott, P. C. (1986). Oligopolistic Behavior by Public Agencies in International Trade: The World Wheat Market. American Journal of Agricultural Economics, 68(3), 528–542. JSTOR. https://doi.org/10.2307/1241538
33. Park, H., & Fortenbery, T. R. (2007). The Effect of Ethanol Production on the U.S. National Corn Price. Proceedings on NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting and Market Risk Management, 18.
34. Petrick, M., & Weingarten, P. (2004). Institutional factors influencing agricultural sales of the individual farmers in Romania. The Role of Agriculture in Central and Eastern European Rural Development: Engine of Change or Social Buffer?, 238.
35. Savic, L., Boskovic, G., & Micic, V. (2016). Serbian agro-industry: Potentials and perspectives. Ekonomika Poljoprivrede, 63(1), 107–122. https://doi.org/10.5937/ekoPolj1601107S
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37. Stojković, D., Manić, E., Bogetić, Z., & Dokić, A. (2018). Regional Retail Sector Development in Serbia–Key Performance and Development Indicators Gap. Economic Themes, 56(3), 335–356.
38. Thiele, R. (2003). Price Incentives, Non-price Factors and Agricultural Production in Sub-Saharan Africa: A Cointegration Analysis. African Development Review, 15(2–3), 425–438. https://doi.org/10.1111/j.1467-8268.2003.00079.x
39. Tudor, M., & Balint, B. (2006). Off-farm Employment and Agricultural Sales: Evidence from Romania. Post-Communist Economies, 18(2), 243–260. https://doi.org/10.1080/14631370600620012
40. Užar, D., & Radojević, V. (2019). THE IMPORTANCE OF AGRICULTURE IN FORMING GROSS VALUE ADDED IN SERBIA IN THE PERIOD OF 2008-2017. Economics of Agriculture, 66(4), 1091–1105. https://doi.org/10.5937/ekoPolj1904091U
41. Vukadinovic, P., Damnjanovic, A., & Dimitrijevic, L. (2017). Analysis of the sales and incomes between different categories of agricultural products. Ekonomika Poljoprivrede, 64(1), 157–170. https://doi.org/10.5937/ekoPolj1701157V
2. Anderson, J. R., Pardey, P. G., & Roseboom, J. (1994). Sustaining growth in agriculture: A quantitative review of agricultural research investments. Agricultural Economics, 10(2), 107–123.
3. Bessler, D. A., & Babula, R. A. (1987). Forecasting Wheat Exports: Do Exchange Rates Matter? Journal of Business & Economic Statistics, 5(3), 397–406. JSTOR. https://doi.org/10.2307/1391615
4. Birthal, P. S., Singh, H., & Kumar, S. (2011). Agriculture, economic growth and regional disparities in India. Journal of International Development, 23(1), 119–131. https://doi.org/10.1002/jid.1606
5. Boserup, E. (1975). The impact of population growth on agricultural output. The Quarterly Journal of Economics, 257–270.
6. Brown, J. D. (2009). Choosing the Right Type of Rotation in PCA and EFA. JALT Testing & Evaluation SIG Newsletter, 13(3), 20–25.
7. Brown, J. P., Goetz, S. J., Ahearn, M. C., & Liang, C. (Kathleen). (2014). Linkages Between Community-Focused Agriculture, Farm Sales, and Regional Growth. Economic Development Quarterly, 28(1), 5–16. https://doi.org/10.1177/0891242413506610
8. Chhibber, A. (1988). Raising agricultural output: Price and nonprice factors. Finance and Development, 25(2), 44.
9. Cicea, C., Subic, J., & Pirlogea, C. (2010). Considerations regarding investments efficiency in agriculture. Economia. Seria Management, 13(2), 321–331.
10. Desai, P. (1998). Macroeconomic fragility and exchange rate vulnerability: A cautionary record of transition economies. Journal of Comparative Economics, 26(4), 621–641.
11. Dorosh, P., & Salam, A. (2008). Wheat Markets and Price Stabilisation in Pakistan: An Analysis of Policy Options. The Pakistan Development Review, 47(1), 71–87. https://doi.org/10.30541/v47i1pp.71-87
12. Eldemerdash, H., Metcalf, H., & Maioli, S. (2014). Twin deficits: New evidence from a developing (oil vs. non-oil) countries perspective. Empirical Economics, 47(3), 825–851.
13. Fayçal, M., & Ali, H. M. (2016). Economic Growth and Government Subventions for Agriculture Sector in Algeria: An ARDL Model. Arab Economic and Business Journal, 11(2), 105–114. https://doi.org/10.1016/j.aebj.2016.10.001
14. Fisher, A. C., Hanemann, W. M., Roberts, M. J., & Schlenker, W. (2012). The economic impacts of climate change: Evidence from agricultural output and random fluctuations in weather: comment. American Economic Review, 102(7), 3749–60.
15. Fulginiti, L. E., & Perrin, R. K. (1993). Prices and Productivity in Agriculture. The Review of Economics and Statistics, 75(3), 471–482. JSTOR. https://doi.org/10.2307/2109461
16. Goldberg, P., & Knetter, M. (1995). Causes and Consequences of the Export Enhancement Program for Wheat (No. w5359; p. w5359). National Bureau of Economic Research. https://doi.org/10.3386/w5359
17. Iganiga, B. O., & Unemhilin, D. O. (2011). The impact of federal government agricultural expenditure on agricultural output in Nigeria. Journal of Economics, 2(2), 81–88.
18. Ildikó, K. Z., Csaba, D. I. B., László, D. P., & Tímea, K. (2009). The effect of the foreign capital and European subventions on the competitiveness of the Hungarian agribusiness enterprises in the last 15 years. 113th EAAE Seminar "A Resilient European Food Industry and Food Chain in a Challenging World", 15.
19. Jones, P. C., Kegler, G., Lowe, T. J., & Traub, R. D. (2003). Managing the SeedCorn Supply Chain at Syngenta. Interfaces, 33(1), 80–90. https://doi.org/10.1287/inte.33.1.80.12718
20. Karp, L. S., & McCalla, A. F. (1983). Dynamic Games and International Trade: An Application to the World Corn Market. American Journal of Agricultural Economics, 65(4), 641–650. JSTOR. https://doi.org/10.2307/1240451
21. Kristjanson, R. L. (1967). Problems and Prospects of Canadian Wheat Sales to China and the USSR. Journal of Farm Economics, 49(5), 1345–1351. JSTOR. https://doi.org/10.2307/1237025
22. Law on Subsidies in Agriculture and Rural Development (2016)., Official Gazette of RS, no. 10/2013, 142/2014, 103/2015, 101/2016, Belgrade, Republic of Serbia, https://www.paragraf.rs/propisi/zakon_o_podsticajima_u_poljoprivredi_i_ruralnom_razvoju.html (accessed 10.4.2020.)
23. Lin, W., Price, G. K., & Allen, E. W. (2003). StarLink: Impacts on the U.S. corn market and world trade. Agribusiness, 19(4), 473–488. https://doi.org/10.1002/agr.10075
24. Lu, N., & Perreau, S. (2005). Sustainable agriculture mobile commerce (SamCom)-extending the rural grocery supply chain through m-commerce. TENCON 2005-2005 IEEE Region 10 Conference, 1–6.
25. Manić, E., Popović, S., & Molnar, D. (2013). Regional Disparities and Regional Development: The Case of Serbia. Mitteilungen Der Österreichischen Geographischen Gesellschaft, 154, 191–211. https://doi.org/10.1553/moegg154s191
26. Mijačić, D., & Paunović, B. (2011). Regional disparities in Serbia. Ekonomika Preduzeća, 59(7–8), 379–389.
27. Mogues, T., & Olofinbiyi, T. (2020). Budgetary influence under information asymmetries: Evidence from Nigerias subnational agricultural investments. World Development, 129, 104902. https://doi.org/10.1016/j.worlddev.2020.104902
28. Mudassar, K., Fakher, A., Ali, S., & Sarwar, F. (2013). Validation of twin deficits hypothesis: A case study of Pakistan. Universal Journal of Management and Social Sciences, 3(10), 33–47.
29. Nadarajan, S. V., & Ismail, R. (2011). E-Commerce framework to improve rural agriculture sector in Cambodia. International Conference on E-Business, Management and Economics, 25, 287–291.
30. Newman, C., & Tarp, F. (2019). Shocks and agricultural investment decisions. Food Policy, 101810. https://doi.org/10.1016/j.foodpol.2019.101810
31. Nganje, W. E., Bangsund, D. A., Leistritz, F. L., Wilson, W. W., & Tiapo, N. M. (2004). Regional Economic Impacts of Fusarium Head Blight in Wheat and Barley. Review of Agricultural Economics, 26(3), 332–347. https://doi.org/10.1111/j.1467-9353.2004.00183.x
32. Paarlberg, P. L., & Abbott, P. C. (1986). Oligopolistic Behavior by Public Agencies in International Trade: The World Wheat Market. American Journal of Agricultural Economics, 68(3), 528–542. JSTOR. https://doi.org/10.2307/1241538
33. Park, H., & Fortenbery, T. R. (2007). The Effect of Ethanol Production on the U.S. National Corn Price. Proceedings on NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting and Market Risk Management, 18.
34. Petrick, M., & Weingarten, P. (2004). Institutional factors influencing agricultural sales of the individual farmers in Romania. The Role of Agriculture in Central and Eastern European Rural Development: Engine of Change or Social Buffer?, 238.
35. Savic, L., Boskovic, G., & Micic, V. (2016). Serbian agro-industry: Potentials and perspectives. Ekonomika Poljoprivrede, 63(1), 107–122. https://doi.org/10.5937/ekoPolj1601107S
36. Statistical Yearbook оf the Republic of Serbia (2019), Statistical Office of the Republic of Serbia (SORS) https://publikacije.stat.gov.rs/G2019/Pdf/G20192052.pdf (accessed 10.4.2020.)
37. Stojković, D., Manić, E., Bogetić, Z., & Dokić, A. (2018). Regional Retail Sector Development in Serbia–Key Performance and Development Indicators Gap. Economic Themes, 56(3), 335–356.
38. Thiele, R. (2003). Price Incentives, Non-price Factors and Agricultural Production in Sub-Saharan Africa: A Cointegration Analysis. African Development Review, 15(2–3), 425–438. https://doi.org/10.1111/j.1467-8268.2003.00079.x
39. Tudor, M., & Balint, B. (2006). Off-farm Employment and Agricultural Sales: Evidence from Romania. Post-Communist Economies, 18(2), 243–260. https://doi.org/10.1080/14631370600620012
40. Užar, D., & Radojević, V. (2019). THE IMPORTANCE OF AGRICULTURE IN FORMING GROSS VALUE ADDED IN SERBIA IN THE PERIOD OF 2008-2017. Economics of Agriculture, 66(4), 1091–1105. https://doi.org/10.5937/ekoPolj1904091U
41. Vukadinovic, P., Damnjanovic, A., & Dimitrijevic, L. (2017). Analysis of the sales and incomes between different categories of agricultural products. Ekonomika Poljoprivrede, 64(1), 157–170. https://doi.org/10.5937/ekoPolj1701157V
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Published
2020-06-24
How to Cite
Dokić, A., Užar, D., Petković, G., & Stojković, D. (2020). IMPACT OF COMMERCIAL AND INVESTMENT ACTIVITIES IN AGRICULTURE ON LOCAL DEVELOPMENT. Ekonomika Poljoprivrede, 67(2), 569–584. https://doi.org/10.5937/ekoPolj2002569D
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