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After 1989 the deep decreases in agricultural production and incomes were observed in Slovakia. The reason was negative development of agricultural terms of trade and decline of government support. Since agriculture was heavily subsidized and politically preferred in pretransformation period, decline of agricultural production indicates an improvement of resource allocation. Decline of agricultural production was deepened by transformation uncertainty and inefficiency of economic and legal institutions. Extreme distribution of land ownership, non- transparent ownership rights, inefficient financial markets and uncertain economic contracts were major problems. Development of agricultural policy after 1989 went from liberalism through ad hoc protectionism to adjustment of instruments of agricultural policy to those of Common Agricultural Policy (CAP) of the EU. In recent years, the level of support of agriculture is much lower than that in the EU. It is slightiy higher than in other Yisegrad countries, however. Agricultural support comes from bom consumers and taxpayers. Consu­mers pay higher prices because of price support while taxpayers pay higher taxes due to production and export subsidies. Agricultural support relative to GDP per capita is now rather high. Before EU accession Slovakia will have to adopt instruments ofthe CAP and gradually also the level of support that is in the EU, Joining the EU and adoption of CAP will increase agricultural prices, consumers' welfare will decrease and agricultural producers' welfare will increase and Slovakia will become a net beneficiary of the common budget of the EU. The possible impact of CAP for Slovak agriculture is uncertain. Bom net transfers from the EU and the enhancement of efficiency of economic (market) and legal institutions should have a positive effect, whereas the worsening of allocation of resources in economy will have negative effect.
Ten countries, including Slovakia, will join EU in 2004. Implementation of CAP is an integral part of the EU accession. Adoption of CAP will have a significant impact on the Slovak agriculture and economy. Support of farmers in Slovakia will increase after accession. Also policy instruments used to support agriculture will change. Major part of support will be provided by payments per hectare of agricultural land (SAPS). There will be also increase of prices, of most agricultural products because intervention prices at which EU purchases surplus production, are generally higher in the EU than in Slovakia. EU accession and adoption of CAP will complete a decade of agricultural reforms in Slovakia. These reforms changed the structure of agricultural sector as it had to adjust to market conditions and reduced role of the state regulation.
The Slovak sectoral dynamic partial equilibrium econometric model based on EU GOLD model was used for the analysis of the development of the Slovak oilseed markets after EU accession. Oilseed production increased during the transition especially due to growth of rapeseed and sunflower production. Simulation results for rapeseed, sunflower and soybean are provided in this article. Two scenarios are analysed: non-accession baseline and accession with adoption of single area payment scheme. EU accession is expected to increase oilseed prices, which will result in decline of consumption. Direct payments will have limited impact on oilseed produc­tion. Trade balance for rapeseed and sunflower will improve.
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