The Impact of Agricultural Subsidies on the Production Structure and Their Spatial Distribution in the Czech Republic

Kateřina Mazancová
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Kateřina Mazancová: Faculty of Economics

No 2026-01, Economics Working Papers from University of South Bohemia in Ceske Budejovice, Faculty of Economics

Abstract: The main objective of this article is to assess whether changes in agricultural policy instruments influence the structure and volume of agricultural production in the Czech Republic (CR) and whether spatial disparities exist in the distribution of subsidies and payments. The analysis is based on time series data for 2000-2024 (2002-2024 for selected commodities) from the Czech Statistical Office and the Ministry of Agriculture, with nominal values adjusted to constant prices. The relationship between subsidies and production was examined using time-series methods, including causality tests, while spatial patterns were analyzed at the district level using Global and Local Moran's I. The results indicate that total agricultural subsidies are not significantly linked to overall sector performance but show a strong relationship with livestock production, with a lag of approximately five years. At the commodity level, no significant causality was found in most cases. Spatial analysis reveals that most area-based payments do not form stable regional clusters, although significant spatial autocorrelation was identified for selected measures, particularly payments for areas with natural constraints and animal welfare support. The findings suggest that the effects of agricultural policy instruments are structurally selective and spatially differentiated, highlighting the need to consider both sectoral and regional heterogeneity when evaluating policy effectiveness.

Keywords: Common Agricultural Policy; Czech Republic; agricultural subsidies; structural transformation (search for similar items in EconPapers)
JEL-codes: Q11 Q18 R12 (search for similar items in EconPapers)
Pages: 111 pages
Date: 2026-06-09
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Persistent link: https://EconPapers.repec.org/RePEc:boh:wpaper:01_2026

DOI: 10.32725/ewp.2026.001

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