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Агроиндустриски Комплекс : Финансирање И Конкурентност
[Macedonian Agribusiness : financing and Competitiveness]

Author

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  • Kovachev, Goran

Abstract

Republic of Macedonia has strong both comparative and competitive advantages in the agri-industrial complex; a situation rarely seen in other sectors of the national economy. Therefore, basic strategic objective of the sector’s stakeholders should be the export expansion of foodstufs. The severe competition on international food markets could only be met by production of export competitive products, i.e. products with permanent market presence, product differentiation, quality and good image. Selling is all about full satisfaction of consumers’ needs and adequate response to their preferences. It is well known that competitiveness is difficult to obtain, but extremely easy to lose. Improvement of the agri-industrial products’ export competitiveness, without adequate and relatively easy access to finances is mission impossible. The scarce of funds is a serious obstacle to any idea in the sector, even the best one. Capital inflows to agroindustry can take various forms: foreign direct investments, loans, subsidies, donations, leasing etc., all with particular strengths and weaknesses. But, one is for sure: the finances could only be provided by close and mutual cooperation between the Government, the producers and the financial institutions. These funds should be invested in enhancing sector’s export competitiveness and expanding the foodstufs exports. Accordingly, these investments will boost the foreign currency inflows and will create a multiple return; not to mention the higher employment and GDP. Several empirical examples have shown that clustering and investment in research, development, innovations and education are the most useful actions for export competitiveness enhancement. The successful realization of these processes would contribute to the national economy development, improve the citizen’s living standard and set foundations for serious and persistent economic growth. No national economy has ever reached the phase of high development, without prior stabilization of the agri-industrial complex. This process currently taking action in Macedonia must be preconditioned by the presence of mission and vision and as one Japanese proverb says: “A vision without action is a dream, but an action without vision is a nightmare!”

Suggested Citation

  • Kovachev, Goran, 2012. "Агроиндустриски Комплекс : Финансирање И Конкурентност [Macedonian Agribusiness : financing and Competitiveness]," MPRA Paper 62779, University Library of Munich, Germany, revised Mar 2012.
  • Handle: RePEc:pra:mprapa:62779
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    References listed on IDEAS

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    1. Pardey, Philip G. & James, Jennifer S. & Alston, Julian M. & Wood, Stanley & Koo, Bonwoo & Binenbaum, Eran & Hurley, Terrance M. & Glewwe, Paul & Mayer, Jorge & Jones, Richard & De Groote, Hugo & Kana, 2007. "Science, Technology and Skills," Reports 136256, University of Minnesota, International Science and Technology Practice and Policy.
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    More about this item

    Keywords

    agri-industrial complex; agri-industrial products; foodstufs; exports expansion; export competitiveness; competitive products; world markets; finances; funds; capital; clusters; strategic approach; mission; vision; research; development; innovations;
    All these keywords.

    JEL classification:

    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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