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SM ISO690:2012 CIMPOIEŞ, Liliana. Subsidies allocation in agriculture and its efficiency: the case of the Republic of Moldova. In: Scientific papers. Series “Management, Economic Engineering in Agriculture and Rural Development”, 2011, vol. 11, pp. 49-52. ISSN 2284-7995. |
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Scientific papers. Series “Management, Economic Engineering in Agriculture and Rural Development” | ||||||
Volumul 11 / 2011 / ISSN 2284-7995 /ISSNe 2285-3952 | ||||||
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Pag. 49-52 | ||||||
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This paper presents the evolution of subsidies allocations in Moldova’s agricultural sector and the impact of subsidies on agricultural outputs and profits. The data used were provided by the National Bureau of Statistics, the Agency for Interventions and Payments in Agriculture, as well as data from agricultural farms collected by the author. The results show that despite the fact that the amount of subsidies have increased during the last years, their amount is still low. The carried research of agricultural farms in the period of 2007-2009 demonstrates that only 239 enterprises received subsidies over 650 lei per ha, thus obtaining 1522 lei per ha profit and a profitability rate of 29,6%. In the same time, the regression analysis reveals that not all the subsidized directions are efficient. According to it, the most efficient are the subsidies oriented to support the establishment of multiannual plantations (0,79) and for capital investments (0,5). More inefficient farms are able to absorb larger amount of subsidies without obtaining any positive results, therefore subsidies should be allocated to the farms relatively efficient in order to achieve higher results. |
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Cuvinte-cheie subsidies, farmers, Agricultural sector, agricultural policy. |
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