Influence of the Governmental Investment Subsidies On Development of Serbian Viticulture

Vasiljević Zorica (), Popović Nikola (), Dimitrijević Bojan (), Vujović Dragan () and Bulatović Branka Kalanović ()
Additional contact information
Vasiljević Zorica: Belgrade University, Faculty of Agriculture, Belgrade, Republic of Serbia
Popović Nikola: Belgrade University, Faculty of Agriculture, Belgrade, Republic of Serbia
Dimitrijević Bojan: Belgrade University, Faculty of Agriculture, Belgrade, Republic of Serbia
Vujović Dragan: Belgrade University, Faculty of Agriculture, Belgrade, Republic of Serbia
Bulatović Branka Kalanović: Belgrade University, Faculty of Agriculture, Belgrade, Republic of Serbia

Economic Themes, 2017, vol. 55, issue 2, 179-198

Abstract: Viticulture is an important branch of Serbian agriculture. It has a long tradition, but there is the decreasing trend both in areas under vineyards and in grape production. The analysis intends to answer the question what are the reasons for those trends. The main goal of the paper is to analyse the relationship between the decrease in areas under vineyards and the level of investment effectiveness in this type of production. The paper analyses the influence of the governmental agrarian policy measures onto increase of investments′ effectiveness in vineyard establishment. The government has adopted the measures for subsidising the establishment of vineyards. The research analyses the economic effectiveness of investments by using the calculation of investments as well as dynamic multi-periodic methods of investment analysis (Net Present Value - NPV and Internal Rate of Return - IRR). The data for investment analysis (investments, the value of production, operating costs) have been collected by the farms through the survey made in Central Serbia, while the data on the governmental subsidies have been taken from The Ministry of Agriculture, Forestry and Water Management of the Republic of Serbia. The analysis has shown that investments into vineyards are not profitable without governmental subsidies and support.

Keywords: viticulture; investments; economic effectiveness; subsidies; Serbia (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/ethemes-2017-0011 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:ecothe:v:55:y:2017:i:2:p:179-198:n:3

DOI: 10.1515/ethemes-2017-0011

Access Statistics for this article

Economic Themes is currently edited by Marija Radosavljević

More articles in Economic Themes from Sciendo
Bibliographic data for series maintained by Peter Golla ().