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Economic Effects of Investment Support of Adding Value to Food Products

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  • Mezera, Josef
  • Spicka, Jindrich

Abstract

The reason for this contribution is need for analysis and evaluation of the support of adding value to food products in framework of the Rural Development Programme (sub-measure I.1.3.1) in the context of the preparation of new documents for the new programming period 2014 - 2020. Application of research results is the first step to modification of rules for the RDP granting aid for the programming period 2014 - 2020 in order to be efficient and targeted at food industry in the new conditions. From a methodological point of view the solution is based on counterfactual analysis and identifies the main effects for the food industry using economic indicators. Results show that the supported businesses consolidated their economic position to a certain extent. The investment support has positive impact on financial stability because participants had smaller decrease of profitability than nonparticipants in the period 2007 - 2010. The investment support increases labour productivity. But due to the higher depreciation, as the consequence of investments in fixed assets, the overall effects on economic results are slightly reduced. The author gratefully acknowledge the support of the Ministry of Agriculture – the support came from the institutional support of the Institute of Agricultural Economics and Information (internal research project no. 1262 – “Economic performance of the Czech food processing sector with focus on small and medium enterprises in the context of the measures Rural Development Programme”).

Suggested Citation

  • Mezera, Josef & Spicka, Jindrich, 2013. "Economic Effects of Investment Support of Adding Value to Food Products," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 5(1), pages 1-11, March.
    • Handle: RePEc:ags:aolpei:148102
    DOI: 10.22004/ag.econ.148102
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    1. Shahidur R. Khandker & Gayatri B. Koolwal & Hussain A. Samad, . "Handbook on Impact Evaluation : Quantitative Methods and Practices," World Bank Publications, The World Bank, number 2693, September.
    2. Medonos, Tomas & Ratinger, Tomas & Hruska, Martin & Spicka, Jindrich, 2012. "The Assessment of the Effects of Investment Support Measures of the Rural Development Programmes: the Case of the Czech Republic," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 4(4), pages 1-14, December.
    3. Ratinger, Tomas & Medonos, Tomas & Spicka, Jindrich & Hruska, Martin & Vilhelm, Vaclav, 2012. "The assessment of the effects of investment support measures of the Rural Development Programmes: the case of the Czech Republic," 131st Seminar, September 18-19, 2012, Prague, Czech Republic 135775, European Association of Agricultural Economists.
    4. Jo H.M. Wijnands & Harry J. Bremmers & Bernd M.J. van der Meulen & Krijn J. Poppe, 2008. "An economic and legal assessment of the EU food industry's competitiveness," Agribusiness, John Wiley & Sons, Ltd., vol. 24(4), pages 417-439.
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    Cited by:

    1. Miroslav Svatoš & Luboš Smutka & Richard Selby, 2014. "Capital Stock Value Development in Relation to the New EU Countries' Agricultural Sector Development," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 62(6), pages 1437-1450.
    2. Tamara Rudinskaya & Elena Kuzmenko, 2019. "Investments, Technical Change and Efficiency: Empirical Evidence from Czech Food Processing," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 11(4), December.
    3. Zdeňka Náglová, 2018. "Investment Subsidies in the Meat Industry and Their Impact on Business Economics," Central European Business Review, Prague University of Economics and Business, vol. 2018(1), pages 37-45.
    4. Prokeinová, R. Benda & Paluchová, J., 2014. "Identification of the Patterns Behavior Consumptions by Using Chosen Tools of Data Mining - Association Rules," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 6(3), pages 1-10, September.
    5. Marin Kukoc & Bruno Skrinjaric & Josip Juracak, 2020. "The Impact Assessment of the EU Pre-Accession Funds on Agriculture and Food Companies: The Croatian Case," Working Papers 2002, The Institute of Economics, Zagreb.
    6. Rudinskaya, T. & Náglová, Z., 2018. "Impact of Subsidies on Technical Efficiency of Meat Processing Companies," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 10(1).

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    Keywords

    Agricultural and Food Policy;

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