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

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

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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This book is provided by Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO) in its series Studies on the Agricultural and Food Sector in Central and Eastern Europe with number 53665 and published in 2009.
Volume: 48
Handle: RePEc:zbw:iamost:53665
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  1. 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.
  2. Michael Knogler & Volkhart Vincentz, 2004. "EU-Erweiterung : Die wirtschaftliche Beitrittsfähigkeit der Balkanländer," Working Papers 249, Institut für Ost- und Südosteuropaforschung (Institute for East and South-East European Studies).
  3. Jeroen Hinloopen & Charles van Marrewijk, 2008. "Empirical relevance of the Hillman condition for revealed comparative advantage: 10 stylized facts," Applied Economics, Taylor & Francis Journals, vol. 40(18), pages 2313-2328.
  4. Thomas Fellmann & Judith Möllers, 2009. "Structural Change in Rural Croatia—Is Early Retirement An Option?," International Advances in Economic Research, International Atlantic Economic Society, vol. 15(1), pages 125-137, February.
  5. Frohberg, Klaus & Hartmann, Monika, 1997. "Comparing measures of competitiveness," IAMO Discussion Papers 2, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
  6. 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, vol. 116(2), pages 315-321, June.
  7. 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 Central and Eastern Europe (IAMO).
  8. 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.
  9. 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, M.E. Sharpe, Inc., vol. 41(6), pages 26-42, January.
  10. Bojnec, Štefan & Fertő, Imre, 2007. "Comparative advantages in agro-food trade of Hungary, Croatia and Slovenia with the European Union
    [Komparative Vorteile Ungarns, Kroatiens und Sloweniens im Handel von Agrar- und Ernährungsgütern
    ," IAMO Discussion Papers 106, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
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