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The Impact of Rural Development Program on Agriculture and Business/Rural Development in Lithuania and Romania: A Mirror Situation

Author

Listed:
  • Alboiu, Cornelia

    (Institute of Agricultural Economics, Romanian Academy, Bucharest)

  • Kuliesis, Gediminas

    () (Lithuanian Institute of Agricultural Economics, Vilnius)

  • Salengaite, Diana

    () (Lithuanian Institute of Agricultural Economics, Vilnius,)

Abstract

The paper makes an analysis of the business and rural development in the two countries investigating the level of fund absorption from the rural development program mainly from Axis 1 and axis3. To compare the two axes we used a set of socio-economic indicators which were used in order to compare the measures belonging of these axes. The paper uses comparative analysis to asses the level of fund absorption for each measure compared in Romania and Lithuania. The results highlight the need and support for structural change and rural diversification. The conclusion suggests that for a better improvement of fund using there is a need for a better balance between different measures within the axis when projects are submitted and contracted, more facilities in terms of eligibility criteria and more information and awareness among farmers and local administration, improved access to credit.

Suggested Citation

  • Alboiu, Cornelia & Kuliesis, Gediminas & Salengaite, Diana, 2011. "The Impact of Rural Development Program on Agriculture and Business/Rural Development in Lithuania and Romania: A Mirror Situation," Agricultural Economics and Rural Development, Institute of Agricultural Economics, vol. 8(1), pages 77-90.
  • Handle: RePEc:iag:reviea:v:8:y:2011:i:1:p:77-90
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    More about this item

    Keywords

    business and rural development; fund absorption;

    JEL classification:

    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance

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