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Croatia's EU accession: socio-economic assessment of farm households and policy recommendations

Author

Listed:
  • Möllers, Judith
  • Zier, Patrick
  • Frohberg, Klaus
  • Buchenrieder, Gertrud
  • Bojnec, Štefan

Abstract

Croatia is very close to meeting the requirements necessary for becoming a member of the European Union (EU). On February 6, 2008, the European Enlargement Commissioner Olli Rehn said that accession negotiations with Croatia are moving ahead well. As in all new member states (NMS), the agricultural sector and food processing chain are core issues within the negotiation process. Successful negotiation requires intimate knowledge of the issue at hand, including the socio-economic situation and the fears and strategies of the stakeholders, particularly small-scale farmers. This report attempts to close some of these knowledge gaps by reviewing Croatia’s rural development dynamics and farm structures, as well as agricultural and rural policies. Based on an empirical research component, the report provides unique, detailed insights into the ongoing structural change in two typical rural regions of Croatia. Special focus will be placed on socio-economic developments within farm households. Farmers’ views, perceptions, and strategies are challenged by a competitiveness analysis of Croatia’s farming sector, particularly in dairy farming. The opportunities and challenges for Croatia’s rural regions are discussed vis-à-vis lessons learnt from the Slovenian accession experience. This executive summary provides a review of the major findings and policy recommendations. The recommendations follow those of the OECD in placing emphasis on regions rather than sectors and investments rather than subsidies in rural development policy. The recommendations refer to two important policy fields: (1) policies to develop, structurally adjust and diversify agriculture, and (2) territorial approaches for policies to create and secure employment (the wider rural economy). Main findings The findings for Croatia are derived from the analysis of secondary sector data as well as micro-economic data from approximately 140 farm households surveyed in 2007. Furthermore, a domestic resource costs (DR
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Suggested Citation

  • Möllers, Judith & Zier, Patrick & Frohberg, Klaus & Buchenrieder, Gertrud & Bojnec, Štefan, 2009. "Croatia's EU accession: socio-economic assessment of farm households and policy recommendations," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 48, number 53665.
  • Handle: RePEc:zbw:iamost:53665
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    References listed on IDEAS

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    1. Bryla, Pawel, 2005. "The Impact of SAPARD on the Behaviour of Farms and Food-Processing Enterprises in the Lodz Region," 94th Seminar, April 9-10, 2005, Ashford, UK 24419, European Association of Agricultural Economists.
    2. Frohberg, Klaus & Hartmann, Monika, 1997. "Comparing measures of competitiveness," IAMO Discussion Papers 2, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
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    4. Erjavec, Emil & Rednak, Miroslav & Volk, Tina, 1998. "The European Union enlargement - the case of agriculture in Slovenia," Food Policy, Elsevier, vol. 23(5), pages 395-409, October.
    5. Bojnec, Štefan & Fertő, Imre, 2007. "Comparative advantages in agro-food trade of Hungary, Croatia and Slovenia with the European Union
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    6. Miroslav Rednak & Stane Kavcic & Tina Volk & Emil Erjavec, 2003. "Complementary CAP Direct Payments from the National Budget and the Farm Income Issue in Slovenia," Eastern European Economics, Taylor & Francis Journals, vol. 41(6), pages 26-42, January.
    7. Michael Knogler & Volkhart Vincentz, 2004. "EU-Erweiterung : Die wirtschaftliche Beitrittsfähigkeit der Balkanländer," Working Papers 249, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    8. Weingarten, Peter & Frohberg, Klaus & Winter, Etti & Schreiber, Catrin, 2003. "Quantitative analysis of the impacts of Croatia's agricultural trade policy on the agri-food sector," IAMO Discussion Papers 56, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    9. repec:kap:iaecre:v:15:y:2009:i:1:p:125-137 is not listed on IDEAS
    10. Thomas Fellmann & Judith Möllers, 2009. "Structural Change in Rural Croatia—Is Early Retirement An Option?," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 15(1), pages 125-137, February.
    11. Arye Hillman, 1980. "Observations on the relation between “revealed comparative advantage” and comparative advantage as indicated by pre-trade relative prices," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 116(2), pages 315-321, June.
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    Citations

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    Cited by:

    1. Klaus Frohberg & Patrick Zier & Judith Möllers & Gertrud Buchenrieder, 2010. "Croatia’s Dairy Sector—Can it Compete in the European Market?," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 16(2), pages 223-236, May.
    2. Buchenrieder, Gertrud & Hanf, Jon Henrich & Pieniadz, Agata, 2009. "20 years of transition in the agri-food sector," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 0(Number 7), pages 1-9, October.
    3. Bojnec, Stefan, 2011. "Agricultural and Rural Labour Markets in the EU Candidate Countries of Croatia, Former Yugoslav Republic of Macedonia and Turkey," Working papers 117487, Factor Markets, Centre for European Policy Studies.
    4. Štefan Bojnec, 2013. "Rural labour market policies in Croatia, FYR of Macedonia and Turkey," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 16(2), pages 179-197, June.
    5. Pierre Boulanger & Emanuele Ferrari & Jerzy Michalek & Cristina Vinyes, 2013. "Analysis of the impact of Croatia's accession to the EU on the agri-food sectors. A focus on trade and agricultural policies," JRC Working Papers JRC77246, Joint Research Centre (Seville site).
    6. Möllers, Judith & Buchenrieder, Gertrud, 2011. "Effects of Rural Non-farm Employment on Household Welfare and Income Distribution of Small Farms in Croatia," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 0(Number 3), pages 1-19.
    7. Boulanger, Pierre & Ferrari, Emanuele & Michalek, Jerzy & Philippidis, George & Vinyes, Cristina, 2013. "Modelling the Effects of Croatia's Accession to the EU: Trade and Agricultural Policies," 135th Seminar, August 28-30, 2013, Belgrade, Serbia 160373, European Association of Agricultural Economists.
    8. Fritzsch, Jana & Möllers, Judith & Buchenrieder, Gertrud, 2011. "Employment diversification of farm households and structural change in the rural economy of the New Member States," IAMO Discussion Papers 134, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    9. Bojnec, Stefan, 2011. "Land Markets in the Three Candidate Countries of the EU," Working papers 117482, Factor Markets, Centre for European Policy Studies.
    10. Bojnec, Štefan, 2011. "Land Markets in the EU Candidate Countries of Croatia, Former Yugoslav Republic of Macedonia and Turkey," Factor Markets Working Papers 96, Centre for European Policy Studies.
    11. Bojnec, Štefan, 2011. "Agricultural and Rural Labour Markets in the EU Candidate Countries of Croatia, Former Yugoslav of Macedonia and Turkey," Factor Markets Working Papers 102, Centre for European Policy Studies.
    12. repec:kap:iaecre:v:16:y:2010:i:2:p:223-236 is not listed on IDEAS

    More about this item

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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