Agric. Econ. - Czech, 2009, 55(2):59-66 | DOI: 10.17221/584-AGRICECON

Impact of the investment grants from the European funds on the development of agriculture and rural areas

S. Buchta, T. Buchta
Research Institute of Agriculture and Food Economics, Bratislava, Slovak Republic Faculty of Law, Department of International and European Law, University of Trnava, Trnava, Slovak Republic

The article describes the impact of the Sectoral Operational Programme Agriculture and Rural Development and the Rural Development Plan 2004-2006 on the rural development in 2004-2007. In addition to the implementation analysis of these programming documents, the article also describes territorial distribution of direct subsidies and state aid over the monitored period of 2004-2007. A summarized overview is given for the drawdown of all types of subsidies and their proportionate amounts. The evaluation of all subsidies has shown that most of them were paid to the Northern and Eastern parts of Slovakia, due to the agroenvironmental and direct payments (mostly LFA). The article also describes, in quantitative terms, the social and economic impact of investment subsidies from the Sectoral Operational Programme Agriculture and Rural Development and the Rural Development Plan 2004-2006, based on the monitoring indicators of result and impact. The comparison of the socio-economic development of the beneficiaries and non-beneficiaries of investment subsidies from the SOP and RDP has shown a faster growth in income of the beneficiaries, as well as a faster growth of labour productivity. Also, the subsidies significantly helped to reduce the decrease in employment and/or helped to maintain the employment in agriculture.

Keywords: Sectoral Operational Programme Agriculture and Rural Development, Rural Development Plan, project (investment) measures, direct subsidies, state aid, territorial distribution of public sources, rural development, socio-economic impact of investment grants on rural development

Published: February 28, 2009  Show citation

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Buchta S, Buchta T. Impact of the investment grants from the European funds on the development of agriculture and rural areas. Agric. Econ. - Czech. 2009;55(2):59-66. doi: 10.17221/584-AGRICECON.
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