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Hungarian endeavours for the enhancement of economic relations in Southeast Asia focusing on a new partnership with Vietnam
5-12Views:249Beyond a brief review of the economic integration process among the states of the ASEAN region, the authors of the present study aimed to examine and analyze the main economic, social and political characteristics of the Hungaro-ASEAN relations. The importance of the topic of this research is underlined by the fact that the Hungarian government considers big importance to the improvement of the foreign economic relations with Asian economies. This intention was expressed by a new foreign economic strategy „Eastern opening” announced by the government in 2012, even though the foreign trade statistical figures did not justify its success by now.The authors believe that increasing opening towards Asia serves Hungarian economic interests. Therefore, it is a right and desirable direction to proceed, they consider that in the background of the modest results there might be the insufficient knowledge of the market mechanisms, the actors of the local supply chains and the potential partners. They believe that in order to make the Hungarian foreign economic endeavours in this direction more successful a more thorough examination of the local characteristics – including the actual demand arising at the targeted markets - is necessary. This opinion is prevalent to not only the Asian „Giants”, like China, India and Japan, but also to smaller states, like the ASEAN members, which – together - in terms of population and economic performance – reach the dimensions of an economic great power as well.
Furthermore, the integration of the ten Southeast Asian countries develops rapidly, which is coupled by their increasing weight in the world trade. The dynamic economic and social development in the ASEAN region – and in parallel with this the growing demands and purchasing power - may encourage the Hungarian ventures in theory. However, there are still very few Hungarian entrepreneurs, who are ready to enter the market in the region and able in long run to operate there successfully. It is a well-known fact that the since the regime has changed in Hungary, foreign trade became strongly concentrated towards the EU members.
The ASEAN countries – because of the geographic distance and by other reasons - definitely cannot mean an alternative of the EU market, however in a certain extent they can relieve this one-sided concentration and may provide additional opportunities for the Hungarian export of goods, and rather to the export of Hungarian services and know-how. The ratio of the ASEAN region within the entire Hungarian foreign trade turnover is small nowadays, furthermore – according to the statistical figures – this region is rather an import resource for Hungary than being an export market. This fact – just itself – is should not be considered as problem. When the amount of the import exceeds the amount of exports, that means that it is more worthwhile to do business with suppliers from there countries than with others. By and large all this is prevalent to the field of the agricultural trade as well: Hungary imports a range of commodities which cannot be produced by domestic farmers or in Europe (spices, tropical fruits, etc.). It is obvious that the ASEAN region cannot be the major market for the Hungarian agricultural export, not even in long run. However, there are still a lot of opportunities to enlarge the turnover of goods and services and enhance the co-operation in this geographic region. In the last chapter, the authors outlined an example in case of Vietnam – co-operation of joint public warehousing of agricultural commodities – which may be a good example for the promising potential opportunities. In contrast with the majority of the ASEAN countries, the Hungaro-Vietnamese political and economic relations had started much earlier than the regime was changed in Hungary. However, the potential advantages arose from this fact – the network of connections and the sympathy of Vietnamese professionals graduated in Hungary, the reputation and popularity of Hungarian agricultural products and technologies, the achievements of R&D in the field of agriculture – could not be utilized from Hungarian side. Vietnam, however still preserved its socialist political establishment, but in terms of its economic development strategy and economic policy has gradually been standing on the basis of market orientation. Vietnam, with its population of ninety million shows a rapid and successful development and it means good opportunities even for Hungarian entrepreneurs. It would be a mistake to leave these potentials unused.JEL Classification: F14, Q17, R11, N75
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Motivation solutions for small and medium-sized enterprises in the Southern Transdanubian Region
39-46Views:270The singularity of human resources and the complex interests in the world of work are a constant challenge for business executives and HR colleagues. While the difference between the performance of a motivated and an unmotivated employee can be up to twice as much at almost the same cost level, the motivation strategy is typically either absent from the business life, or operates on a reactive concept based on an unconscious design. Although the mere presence of motivation and its various levels are less quantifiable in exact terms with direct tools, a performance which is much weaker than possible is measurable in the short and long term, and its negative economic results are clear. The aim of the research is to examine the motivational practices of small and medium-sized enterprises (SMEs) operating in the Southern Transdanubian Region. Involving 300 businesses we evaluated the applied wage system, the role of money among the motivational tools, the extent and causes of fluctuation, the system of employee training, the way of performance evaluation, the reasons for underperformance, the importance of motivation, the company motivation strategy and the efforts to retain the key people. The employee motivation can be increase in several forms, but the priority of needs and claims is constantly changing. Updating this motivational matrix is a real leadership challenge, but this effort can pay off multiple times. According to the results it can be stated that the motivation strategy – as a key economic issue – is not given sufficient attention in business practices.
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Reporting companies’ performance – in respect of the international financial reporting standards (IFRS)
107-112Views:211The role of information became more important due to rapidly changing technical conditions, market and economic regulations in our globalizing world. Several regulations tend to provide the framework for reporting performance and income of the companies, but in different statements performance is inconsistently presented and many kind of evaluation method exist in the practice. These facts led to the demand of properly assess the financial health of an organization, and created a commonly accepted rule-system, which name was International Financial Reporting Standards (IFRS). In this paper I tend to present the statements, definitions and factors, which can have great influence in representing the performance, income of the company in the frame of the IFRS, and reveal the differences between the other accounting regulations (EU directives, Hungarian Accounting Act) in this field.
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Diversification strategies and their impact on farm performance
57-61Views:161The objective of this study is to identify factors determining the economic performance of agricultural holdings in Italy, with specific attention to the impact of the adoption of on-farm diversification strategies, namely income diversification and product differentiation. The adoption of these kinds of strategies has been increasingly recognised as a viable business option in agriculture as they allow better allocation of farm resources and an increase in the quota of value added retained on farms and therefore not passed on to other agents operating at the end of the food supply chain. By using a panel of professional Italian farms over the time period of 2003-2009, we estimate random effect, ordinary least square and quantile regression models to estimate the impact of income diversification and product differentiation strategies on the levels of farm income per unit of labour income. Our findings show that scale economies are important positive determinants of farm economic performance. On the contrary, when the family play an important role in the farm business, economic performance is worse. Finally, we do not find evidence of a statistically significant impact of the adoption of income diversification and product differentiation strategies. This latter result may be interpreted as a signal that farms use these strategies as risk management tools rather than as income increasing ones.
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The economic performance of tourism in Northern Hungarian Region, with special regard to Heves County
99-102Views:118The study shows the economic performance of public accommodation establishments (especially in Heves County) in the period of 2000–2008 in the context of basic touristic indicators like the number of public accommodation establishments, capacity, arrivals, bednights, average length of stay, revenue (structure of revenue), and the role of local tourism tax revenues. According the study, we can conclude that on the basis of the capacity, number of guests and number of bednights of public accommodation establisments, Heves County (as compared to other counties of the region) played a pivotal role in the tourism of Northern Hungary in the studied period. Knowing these facts, it is worthwhile to make further investments and developments in tourism in the county.
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THE NEXUS BETWEEN SUSTAINABLE VALUE CHAIN ACTIVITIES AND FINANCIAL BENEFITS OF THE SOYBEAN VALUE CHAIN SYSTEM IN THE NORTHERN REGIONS OF GHANA
Views:119Soybean is an important crop that contributes to economic freedom and food security. The study of soybean value chain is therefore important to improve on the activities of the chain actors for an overall economic gains. This paper aims to examine the nexus between sustainable value chain and financial benefits of the soybean value chain system in Ghana. Specifically, we employ the triple bottom line model to examine the soybean value chain from economic, social and environmental perspectives using sample data from Ghana. With a sample size of 300 including all actors of the value chain, our findings reveal that chain actors do not differ in their perceptions of overall financial gains that accrued to them with their involvement in chain economic activities. The findings further revealed that perceived financial sustainability of chain activities was affected by tangible financial benefits. Moreover, the results further show that chain actors’ perception of social sustainability performance was significantly affected by expected overall financial gains that accrue to them as a result of their participation in chain economic activities.
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Modeling multifunctionality of agriculture at a farm-level: The case of kerkini district, Northern Greece
59-64Views:130Multifuncionality has become a central concern at both conceptual and empirical levels. In this study, a comparative evaluation of the economic performance of conventional and multifunctional farms (mainly organic farms) was conducted for the Lake Kerkini region (North Greece) with the use of mixed integer non-linear programming method. The economic performance of farms was evaluated in terms of farm income, resource allocation, production level and production mix. The results indicate that multifunctional farms have overall better economic performance and young farm managers are keener to adopt multifunctional farming than the older ones. Differences between the model results and the observed facts are attributed to the structural characteristics of the farms, along with the CAP measures and the existence of multiple objectives, beyond maximization of net farm returns.
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Analysis of the process of introducing euro in new member states: Defining lessons for Croatia case study: Slovenia
93-94Views:156On 1 May 2004, EU made a historical enlargement by expanding from 15 to 25 members, and with another enlargement in 2007, EU is now a union of 27 member states. Following the new member states accession to the EU the next challenge for them is joining European Monetary Union and introducing the euro as a national legal currency. This thesis concentrated on the analysis on how the new member states handle the process of joining the Euro-zone with the main objective to examine whether there are any possible lessons that Croatia can apply to its EMU integration path. The thesis is mainly focused on analysing the Slovenian EMU integration process, as this member state has been identified by the Croatian Authorities and Croatian National Bank as the one whose experience Croatia should try to follow. The central questions that are discussed are weather Croatia is economically and politically capable to follow the Slovenian example, and, on the other side, weather the Slovenian example is the best one to follow i.e. should Croatia introduce euro by using the quick EMU entry strategy as Slovenia did. In order to answer those questions thesis focused on analysing and explaining different strategies for euro adoption chosen by the new member states with special emphasis on the strategy of quick EMU entry approach chosen by Slovenia. The thesis also concentrated on analysing the Slovenian political and economical path from Yugoslavia to the EU and especially on its economic performance and key economic indicators prior to introducing euro. Finally, with the aim to compare the economic performance between Slovenia and Croatia and define similarities/differences in their transition and EU accession process, the thesis gave a detailed overview of the Croatian current economical and political situation. After brief analysis of all pros and cons of an early euro adoption, the thesis concluded that following the experiences of small sized countries with opened economies and strong trade orientation towards the countries of the Euro-zone, such Slovenia is, would be a comprehensive and logical strategy for Croatia. Early euro adoption would provide more benefits than costs for Croatian economy and society in general. The thesis also concluded that Croatia should face no major problems when it comes to fulfilling most of the Maastricht criterion on time, in order to be able to adopt the euro in the shortest possible period as Slovenia did. However, the thesis also highlighted that in order to do so Croatia has to put a serious emphasis on improving certain aspects of its current macroeconomic situation, in particular the one concerning the percentage of state sector deficit in the GDP and the size of public debt.
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Cross-sector analysis of the Hungarian sectors covered by the Effort Sharing Decision – Climate policy perspectives for the Hungarian agriculture within the 2021-2030 EU programming period
17-24Views:185Ever since 2012, the EU ETS (European Union’s Emission Trading Scheme), which is the EU’s climate policy was extended to include the ESD (Effort Sharing Decision) sectors’ (agriculture, transport, building) regulations. As its name implies, this mechanism is based off of shared interests and efforts, all in order to reach the climate goals. Therefore, analysing the agriculture sector from an environmental viewpoint requires the analysis of related sectors as well, since their performances will have an impact on determining the requirements to be met by the agriculture. Seeing that those primarily present in said sectors are not various firms, but people and public utility management institutions instead, the level of regulations draws from the economic state of the various countries in question (GDP per capita). Therefore, member states like ours did not receive difficult goals until 2020, due to our performance being lower than the average of the EU. However, during the program phase between 2021 and 2030, all nations are to lower their GHG (greenhouse gases) emission, and have to make developments to restrict GHG emission level growth within the ESD, which means we already have to estimate our future possibilities. During the analyses, we will see that analysing agriculture from an environmental viewpoint, without doing the same to their related sectors and their various related influences is impossible. The GHG emission goals determined by the EU have to be cleared by the agriculture sector, but the inputs from transport, waste management and building are required nonetheless.
JEL classification: Q58
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Enhancing the effectiveness of thermal water consumption via heat pumping
53-58Views:156Renewable technologies and the extension of their scope of usage basically has to face the general obstacles like any other novelties newly introduced to the market. In the case of environmentally friendly and clean technologies we must consider another critical aspect: the knowledge and the trust of the potential future users. To influence these people first we must extend their knowledge regarding renewable energies so they will be able to change their own approach about them. Usually the most crucial factor is the economic efficiency which determines the attitude of the majority of the users. Even the ones whose decision making process is highly based on the environmental patterns. In the case of any technology, the economic aspect is significantly influenced by its operational effectiveness. So this analysis – besides the direct economic matters – aims to examine how the performance of thermal water heating in greenhouses can be improved by using heat pumping.
JEL classification: Q42
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Members of a supply chain and their relationships
131-134Views:239Today, companies do not compete individually on the market, but as members of a supply chain, delivering their goods or services to customers through shared collaboration. The main objective of the members in the chain is to satisfy customer needs, in the interest of which they cooperate in value adding processes. The main objective of the present study is to characterise the members of a supply chain, their relationship and to measure performance. The most relevant literature published on this topic states that investigation of the performance measurement in supply chains from the side of relationships is considered ‘uncharted territory’. However, the operation of a supply chain cannot be described without investigating its relationships.
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Economic Performances of German Agri-Food Businesses: an Extension of Existing Discourses on the Topic
67-80Views:196Considering the circumstance that literature dealing with the economic performance of agri-food businesses in general, or particularly with the German agricultural sector, mainly deals with strictly agricultural-related theory in order to explain the economic success of agri-food businesses, the present paper aims to extend existing discourses to further areas of thought. Consequently, the characteristics: a) increased size of agribusiness, b) pull-strategies, c) the development of new markets and d) focus on the processing industry, that all correspond to the current picture of the German agricultural sector and are considered to be significantly responsible for recently managing to outpace the French agri-food sector, will be first explained in their success against the background of mainly non-agricultural-related literature. By doing so helpful and rather unnoted perspectives can be contributed to existing discourses. Second, the paper presents scatter plots which portray correlations between a) the added value of agriculture and the regular labor force, b) the added value of agriculture and the number of agricultural holdings and c) the added value of agriculture and the number of enterprises concerning milk consumption. Corresponding scatter plots which show different developments in Germany and France can be related to the findings of the first part of the paper and allow new perspectives in existing discourses as well.
JEL Classification: Q10
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Regional benchmarking process in cognac project (Coordination of RDI policies and their coherence with other policies in the Newly Acceded Countries)
29-32Views:129In order to achieve the Lisbon objectives and create a knowledge based society, Europe needs to increase and improve investment in R&D. This requires improving the effectiveness and coherence of research policies at European, national and regional levels. The first cycle of application of the open method of co-ordination (OMC) to the 3% objective provided an overview of the Member States policies in a number of areas, facilitated mutual learning and led to a number of policy recommendations adopted by CREST in October 2004. The current regional benchmarking practice is made with in a 6th Framework Programme project called Cognac, which is the acronym for Coordination of R&D&I policies and their coherence with other policies in NewlyAcceded Countries. The project is focusing on two priority subjects: public research spending and policy mixes and SMEs and research. The project was supported within the first cycle of the RTD-OMC NET call. The benchmarking exercise tries to show the differences in the performance of participating regions. It supposed to choose the best regions at NUTS II level by the two priority topic of the project: “Public research spending and policy mixes” and “SMEs and research”. Geographically the analysis covers the area of the eight partnering regions.
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Changing patterns in hotel room demand – case study of the Aquaticum Debrecen Thermal and Wellness Hotel
43-47Views:180Aquaticum Debrecen Thermal and Wellness Hotel is a very successful lodging property not only in Debrecen but also in the Northern Great Plain Region and in the Eastern part of Hungary and in point of fact in Hungary. In the past years Aquaticum Thermal and Wellness Hotel has been the leader in the region by revenue per available rooms (RevPAR). RevPAR indicates the overall performance of properties, accordingly it is the most commonly used statistical indicator in comparison to competitors in Hotel industry. In the past years, demand for Hotel rooms has changed. This changing has several signs. For instance the occupancy rate, the rate of domestic and foreign guests, the nationality of foreign guests, the time between booking and travelling, and many other demand patterns have changed. During the last year, the changing has been accelerated by the global economic crisis. Guests are waiting with their bookings hoping for better rates and last minute offers. The forecast of demand became much harder than ever before. These forecasts are basic ingredients of the revenue management systems, which systems are in use or will be in use by Hungarian Hotels. These systems are necessary to keep RevPAR at a higher level and to help Hotels to achieve better performance.
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Changing patterns in hotel room demand – case study of the Aquaticum Debrecen Thermal and Wellness Hotel
51-55Views:128Aquaticum Debrecen Thermal and Wellness Hotel is a very successful lodging property not only in Debrecen but also in the Northern Great Plain Region and in the Eastern part of Hungary and in point of fact in Hungary. In the past yearsAquaticum Thermal and Wellness Hotel has been the leader in the region by revenue per available rooms (RevPAR). RevPAR indicates the overall performance of properties, accordingly it is the most commonly used statistical indicator in comparison to competitors in Hotel industry. In the past years, demand for Hotel rooms has changed. This changing has several signs. For instance the occupancy rate, the rate of domestic and foreign guests, the nationality of foreign guests, the time between booking and travelling, andm many other demand patterns have changed. During the last year, the changing has been accelerated by the global economic crisis. Guests are waiting with their bookings hoping for better rates and last minute offers. The forecast of demand became much harder than ever before. These forecasts are basic ingredients of the revenue management systems, which systems are in use or will be in use by Hungarian Hotels. These systems are necessary to keep RevPAR at a higher level and to help Hotels to achieve better performance.
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POSITIVE EFFECTS OF CULTIVATION TECHNOLOGIES BASED ON GEOREFERENCED DATA ON THE ECONOMIC SUSTAINABILITY OF WINTER WHEAT PRODUCTION
Views:60Elements of precision farming, such as auto-steer navigation, section control and variable rate application, can have a positive impact on farming performance, yet the uptake of these technologies has been slow and farmers are not convinced that they can achieve ad- ditional benefits by switching to them. Therefore, the authors considered it important to examine the impact of precision farming on winter wheat yields based on data from Hungarian farms. Yield data from farms with a yield map in the MyJohnDeere database from 2018-2022 and yield and cost data from 48 farms with Variable Rate Application (VRA) from 2018-2022 were evaluated and compared to the national average. MyJohnDeere and VRA farms had significantly higher yields in all years. Despite the cost saving from the introduction of precision farming, such as non-overlapping input application, the total costs of the examined VRA farms were higher, which can be explained by more intensive production beyond precision farming. It can also be argued that the additional inputs of the VRA farms were outweighed by the additional production value, with their specific incomes being higher than the national average in all years. In conclusion, the profitability of winter wheat production - and thus its resilience to a changing economic environment - can be increased at farm scale by adapting preci- sion farming. Technological change by farmers, in particular the widespread adoption of variable rate application, could also increase the sustainability of winter wheat production at the farm scale.
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Management issues of cropping with sorghum in the production structure - a case study of Hungary
Views:232One of the goals of the developments is to improve the efficiency of the activity by making the currently used traditional production structure more flexible and by making the necessary changes to the technology in the case of farmers with large agricultural land, having necessary machinery and equipments required. Farms with larger arables land are able to offset the effects of changes affecting efficacy and profitability. The main sector of Hungarian agriculture is crop production, so performance is largely determined by the annual output of the crop production sector and the price development of crop products. In the course of our analytical work, we defined a farm of 2100 hectares, for which we examined crop production, crop machinery and economic aspects. From the enterprise data, farm level results compiled according to the crop structure were calculated. Sorghum is suitable for replacing corn in the crop rotation in areas with unfavorable conditions, so a stably growing crop can be added to the crop rotation of autumn ears of corn, rape, and sunflower, instead of corn. It does not hinder the machinery modernization efforts either, since the precision tools and developments already started in corn production can be used well, and it does not require a special equipment park. At the same time, in light of the increasingly frequent negative climatic effects, sorghum’s integration into the plant production structure is encouraging, because we have to count on 3-4 drought years in a decade. Based on our analysis, the inclusion of sorghum in the crop structure does not significantly reduce the available income, which is acceptable in the given economic environment. However, its stability can significantly contribute to improving the resilience of farming, especially in comparison with corn.
JEL Code: Q12
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Relationships between competitiveness in the Northern Great Plain and the organisational culture of local authorities
13-20Views:148One of the five basic factors in the Lengyel-type pyramid model – institutions and social capital – is essential in the economic growth of the region. Economic success however, does not only depend on participants in the economy, but on social factors such as the roles played by local authorities, including their functions, operation and organisational culture, all of which are crucial factors. Based on the results obtained regarding organisational culture it can be stated that performance orientation, dominant motivation based on calculated risk, forward planning and regular feedback are expected values at local authorities in all three counties. All local authorities emphasise the importance of the need for forecasting. Respondents find it important that organisations encourage and reward individual action and contributions as expected values. The degree of human orientation expected by local authorities reflects the fact that respect for colleagues and attention to their well-being should be at the highest level. Reinforcing these organisational culture values (dimensions) is the basis for the efficient and successful operation of organisations (local authorities). The study examines the organisational culture of local authorities in the Northern Great Plain, looking for any relationships it might have with the competitiveness of the region. This study is an element of the wider research into organisational culture. We used the GLOBE (Global Leadership and Organisational Behaviour Effectiveness) survey, which had been successfully applied in the research programme In Competition with the World at the Corvinus University of Budapest. Koopman, Den Hartog, Konrad et al. (1999) examined the culture variables of 21 European countries in organisations. Based on Hungarian and international literature it can be stated that a similar survey of local authorities has not yet been conducted.
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Economic results of Croatian farms
53-58Views:145The objective of the paper is to provide an overview of the situation and performance of Croatian farms. Croatian farmers rarely keep business books and therefore farm level business data are deficient. Croatian accession to the European Union in 2013 brought numerous innovations to agricultural sector. One is introduction of Farm Accountancy Data Network (FADN) which aims to determine the impact of the Common Agricultural Policy on national agriculture of EU member states. The sample of Croatian FADN comprises 1,250 commercial farms. The paper brings results of agricultural sector financial analysis for the period 2011-2013. Total farm output decreased, but since the stronger decrease trend occurred in total inputs, this led to positive trend of gross and net farm income in the year 2013. Positive results are also shown at efficiency and productivity of Croatian farms. In the years 2011 and 2012 farms operated below the efficiency level while in 2013 efficiency increased above the efficiency level. In the observed period there was a 70% increase in productivity. The analysis shows that the most efficient farms are those in vegetables and flowers type. It also has the highest debt ratio due to their capital intensiveness. The vegetable and floriculture farms have the largest gross farm income in all three analysed years, but with a large drop in 2013, while the farms in type pigs and poultry have largest increase of gross farm income in last observed year.
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New tools and opportunities in growth and climate friendly greening for small and medium enterprises in the European Union
25-31Views:182The role of Small and Medium Enterprises (SMEs) is unquestionable in the European economies, while financial opportunities are still inadequate for them. The more than 20 million SMEs play a significant role in European economic growth, innovation and job creation. According to the latest EC Annual Report , SMEs are accounting for 99% of all non-financial enterprises, employing 88.8 million people and generating almost EUR 3.7 tn in added value for our economy. Despite the fact that there is plenty of EU funding available for these SMEs, for certain reasons these funds hardly reach them. But we have to see that the EU supports SMEs by various way, e.g. by grants, regulatory changes, financial instrument, direct funds. On the other hand, SMEs and decision makers realised that the environmental sustainability has to be attached to the economic growth, therefore more and more tools are available for these enterprises. Over the last few years, public institutions, the market, the financial community and non-governmental associations have explicitly demanded that firms improve their environmental performance. One of the greatest opportunities might lay in the Climate- and Energy Strategy till 2030 as 20% of the EU budget is allocated to climate-related actions, however the easy access to finance is still a key question. Does the EU recognise the actual difficulties? Is there a systemic reason behind the absorption problems? Is the EU creating a more businessfriendly environment for SMEs, facilitating access to finance, stimulates the green and sustainable growth and improving access to new markets? The paper analyses the current European situation of the SMEs and the effectiveness of some new tools, which are specially targeting SMEs.
JEL classification: Q18
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Payback analysis of E85- and CNG-powered vehicles in Hungary
47-50Views:180As a result of my analysis it was found that when purchasing a new alternative fuel car only a CNG-powered vehicle could be a reasonable choice, the extra cost of which (depending on its scale) ensures a return within 2 – 7 years, i.e. over the real expected duration of use of the car. However, the spread of these cars is determined by the lack of CNG fuel stations in Hungary. The E85-powered so called FFVs could become a competitive alternative with lower ethanol prices or moderate government support (for example a registration fee allowance similar to that enjoyed with hybrid vehicles, or reduced taxes).
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Competitiveness of Polish regional Agro-clusters
35-40Views:198The present paper concerns the analysis and evaluation of the performance of regional agro-clusters in Poland and also the examination of the significant basic factors which have influence on it. The objective of the paper is both to rank the 16 Polish regions according to their competitive position in the agrocomplex and to present their economic and social position, show differences and regional contrasts. Also, we compare the outcomes with the overall Polish regional competitive index, which was created in accordance with the Huggins Institute approach.
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The impact of the “greening” of the common agricultural policy on the financial situation of Polish farms
49-55Views:340This paper presents an assessment of the impacts of introducing the greening scenario of the CAP, proposed by the European Commission as an alternative for the reformed CAP after 2013. In the past, the CAP has undergone numerous transformations in response to the changing macroeconomic environment and in reaction to developments in the farming sectors in EU countries. On the 12th of October 2011, the Commission presented a set of legal proposals designed to make the CAP a more effective policy to encourage more competitive and sustainable agriculture and vibrant rural areas. The proposal brings various new elements under consideration, some of them raising strong controversies such as introducing “greening” as a component of direct payments. Changes in the direct payments scheme in line with the EC proposition include forcing adjustments in the cropping pattern and creating ecological focus areas (EFA) on 7% of the farm land ; the consequences of such a proposal on the size and structure of agricultural production, and thus on the economic performance of farms and the whole agricultural sector are uncertain. The authors analyse historical changes to the CAP with a focus on a growing importance of the environmental component of the CAP, discuss different scenarios of shaping the direct payments system and present the results of modelling the impacts of greening the CAP on the Polish farming sector with the use of the LP optimisation model. The study was based on Polish FADN data. Results show that the majority of farmers in Poland comply with the crop diversification constraint of greening. However, establishing the required EFAs and necessary diversification on farms with simplified cropping structures will have a negative impact on the volume of agricultural production as well as on farm incomes.