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Agricultural development and government expenditures in the new EU countries

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  • Bielik, Peter

Abstract

The main ambition of this paper is to analyse agricultural developments in selected new EU member states with particular emphasis on government expenditures in agriculture. The main objective is to identify the relationship between government expenditures development on one side, and agrarian sector performance (the value of production) in selected member states on the other. The conclusions drawn from this analysis are that the agricultural sector has changed its structure and position within the national economy of selected new EU member states significantly in the 20 years since the early 1990s. Member states included in the analysis reduced both the size of their agricultural sector (number of people working in agriculture, total arable areas, number of animals, etc.), and the value of agricultural output. Despite the significant reduction of the agricultural output, member states became more efficient – and in particular their productivity per farmer increased significantly. Selected country’s agricultural sector, its structure and production value development are closely related to government expenditures. Significant correlation is apparent between agricultural government expenditures and the change in the number of economically active persons in agriculture, development of agricultural production, agricultural area, agricultural GDP and agricultural capital stock. Regarding the elasticity of new EU member states’ agricultural sector in relation to changes in government expenditures, significant elasticity is apparent in the case of the number of economically active persons in agriculture, agricultural production (especially livestock production), area of arable land, agricultural GDP and capital stock.

Suggested Citation

  • Bielik, Peter, 2014. "Agricultural development and government expenditures in the new EU countries," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 8(1), pages 1-16.
    • Handle: RePEc:ags:apstra:187525
    DOI: 10.22004/ag.econ.187525
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    References listed on IDEAS

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    1. Alan Swinbank, 1999. "EU Agricultural, Agenda 2000 and the WTO Commitments," The World Economy, Wiley Blackwell, vol. 22(1), pages 41-54, January.
    2. Jean-Christophe Bureau & Stefan Tangermann & Alan Matthews & Davide Viaggi & Christophe Crombez & Louise Knops & Johan Swinnen, 2012. "The Common Agricultural Policy after 2013," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 47(6), pages 316-342, November.
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    Cited by:

    1. Lukáš Moravec & Jana Hinke & Gabriela Kukalová & Adéla Šlapáková, 2019. "Comparison of Tax Burden on Farms in Selected US States," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 67(3), pages 839-851.

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