EFFICIENCY OF SUBSIDIES ALLOCATION TO AGRICULTURAL ENTERPRISES IN THE REPUBLIC OF MOLDOVA

Ina Dombrovschi ()
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Ina Dombrovschi: State Agrarian University of Moldova

Economy and Sociology, 2020, issue 1, 53-63

Abstract: As the Republic of Moldova has limited opportunities to provide generous financial support to farmers, it is extremely important to efficiently use subsidy means, so as to contribute to the development and modernization of agriculture and rural areas. The development of agriculture in a dynamic way can be achieved on the basis of an efficient subsidy system, administered, monitored and evaluated. The aim of the research is to analyse and evaluate the efficiency and impact of subsidization on the development of the agricultural sector and to ensure a stable increase in agricultural production, emphasizing main support measures in this direction. To carry out this study, various research methods were used, such as: observation method, table method, analysis and synthesis method, comparison method, monographic method, statistical data collection. This article presents an analysis of the evolution of the subsidy fund for agricultural producers, which has increased 2.25 times in the last 7 years. There has also been analysed the structure of beneficiaries of subsidies according to the legal organizational form, who received subsidies during the reference period. It has been found that households are in the top of beneficiaries of subsidies who had a share of 62.03% in 2018. The distribution of subsidies by development regions and per one hectare of agricultural land in the profile of development regions has been studied and it has been found that the predominant share is held by agricultural enterprises in the Centre region, about 38.9% of the means of the subsidy fund. The results of the research show an increase in the subsidy level, through support measures. In this context, we can mention that the support measures must ensure an efficient use of the subsidies.

Keywords: financial result; efficiency; subsidies; investments; subsidy fund; support measures; subsidy means (search for similar items in EconPapers)
JEL-codes: E22 H25 J43 Q12 Q14 Q18 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:aat:journl:364

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