SUBSIDIES AND THEIR IMPACT ON THE COMPETITIVENESS OF THE AGRICULTURAL SECTOR IN MOLDOVA

Abstract

State support is a major determinant for efficient farm activity that contributes to an increase in the efficiency and quality of production, and contributes to the increase of competitiveness and modernization of agricultural sector.
In this paper, the distribution of agricultural subsidies by directions and regions is analyzed. In order to reach the goal and conclude the research tasks the analysis and synthesis of scientific literature, systematization of information, comparative analysis and summarizing methods were used and farm technical efficiency (TE) was calculated. The analyzed period in the given research were 2010–2014, based on primary data collected from corporate farms and secondary data provided by the National Bureau of Statistics, and Agency for Interventions and Payments in Agriculture.
During the analyzed period, the amount of allocated subsidies to farmers increased, but still are present inequalities in the distributed funds, difficulties in obtaining the payments and lack of transparency. As well, a clear and consistent policy that could be implemented through the allocation of subsides aimed at developing the agricultural sector is missing.

Keywords: agricultural sector, farmers, subsidies, support policy, technical efficiency.

Article DOI: http://doi.org/10.15544/RD.2015.096