Original scientific paper

EFFECTS OF SUBSIDIZING MEASURES ON COMPETITION IN APPLE PRODUCTION OF BOSNIA AND HERZEGOVINA

2006, 7 (3)   p. 541-544

Ferhat Ćejvanović, Zorica Vasiljević, Vlade ZARIC, Zorica Sredojević

Abstract

Subsidies in apple production represent one kind of agrarian policy measures that serve for improvement of fruit production in Bosnia and Herzegovina, in order to be reduced existing defi cit as well as to be increased degree of self-suffi ciency. Basic target of this paper is to examine are there some positive effects of the existing subsidizing measures onto fruit production, particularly at an example of apple production. In addition, analysis carried out in this research is aiming at pointing out both assessment of achieved positive results and negative implications of applied agrarian policy measures in Bosnia and Herzegovina (i.e. subsidizing in the case of new apple plantations). By application of appropriate economic analysis methods onto selected indicators of the state intervention in agriculture, in this paper it is carried out an assessment of advantages and limitations in cited subsidizing agrarian policy measures. The results of analysis could contribute to the comprehension of objective picture on agricultural sector position in Bosnia and Herzegovina within an international environment, as well as to a more adequate choice of those agrarian policy measures which will have the greatest effects onto fruit production increase and on degree of domestic demand satisfaction as well, and fi nally on substitution of import as well as decrease in the country balance of payments defi cit.

Keywords

fruit production, competition, economic effects, subsidies, agrarian policy measures, bosnia and herzegovina

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