The Impact of State-Owned Enterprises on Regional Development: The Role of PIK Belje in Baranja in the Second Half of the 20th Century

Attila Tarnai

EconStor Conference Papers from ZBW - Leibniz Information Centre for Economics

Abstract: The research examines the role of the state-owned enterprise PIK Belje in the Baranja region during the second half of the 20th century, with particular attention to the 1970s and 1980s. The region has traditionally been characterized by strong agricultural capacities, yet it suffered long-term economic stagnation due to the loss of its natural markets following the Treaty of Trianon. In this context, PIK Belje emerged as a key driver of modernization and local development. The enterprise not only purchased agricultural products from the region-wine, grapes, and cereals-but also created new opportunities for small producers through targeted loans and contractual arrangements. Such support was deliberately tied to technological renewal, such as vineyard modernization and mechanization, thereby enhancing productivity. By guaranteeing demand and integrating local farmers into broader market structures, PIK Belje functioned simultaneously as a stabilizer and a catalyst of regional growth. My research shows that state-owned enterprises can contribute to mitigating market failures and promoting rural development in peripheral regions.

Keywords: Baranja; PIK Belje; state-owned enterprise; rural development; market integration (search for similar items in EconPapers)
JEL-codes: N54 R11 (search for similar items in EconPapers)
Date: 2025
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