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- W77888464 abstract "There are often claims that one of the main causes of poor competitiveness of agricultural production of Bosnia and Herzegovina (BaH) is lower level of subsidies in relation to other countries. In addition, the problem stated is too big and too rapid liberalization of imports of agricultural and food products. Subsidies and custom duties increase competitiveness of domestic producers, which ultimately depends on the level of indirect subsidies and tariff protection enjoyed by their competitors in the domestic and international market. Budgetary constraints in developing countries do not allow payment of the same subsidies to farmers as in developed countries. Because of the different systems of distribution of subsidies it is difficult to make direct comparison of the levels of Bosnia and Herzegovina (BaH)/The Republic of Srpska (RS) with other countries. Therefore, the level of subsidies in agriculture is measured by a single indicator, and one of the most common is the OECD's PSE (Producer Support Estimate) indicator. It expresses the average level of subsidies to agricultural producers at the level of the EU and amounted to 19.8% in 2010. In the Republic of Srpska (RS), the level of agricultural subsidies (including incentives for longGterm investment and rural development) in 2010 was 12.2% of its agriculture gross value added (GVA). In the last five years, livestock production is more subsidized (in average with 7.6% of agriculture GVA) with a tendency to increase subsidies to that group. Crop production is subsidized in average with 5.3% of agriculture GVA, with the tendency to decrease support to this group. The above suggests that the domestic producers are handicapped in free market competition because they are receiving lower level of subsidies, which combined with lower productivity, reduced their competitive position in relation to imported products, i.e. the imports are not charged by any or by very low customs. The paper further elaborates on policies of subsidizing agriculture in RS and BaH and makes some comparison with the EU Common Agricultural Policy and the level of subsidies in the EU." @default.
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- W77888464 date "2012-01-01" @default.
- W77888464 modified "2023-09-23" @default.
- W77888464 title "SUBSIDIES AS A FACTOR IN THE COMPETITIVENESS OF DOMESTIC AGRICULTURAL PRODUCTION" @default.
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