PurposeThe purpose of this research is to analyze implications of SEE trade liberalisation for the B&H agribusiness sector and to provide policy recommendations for both the public and private sector.Design/methodology/approachThis study uses revealed comparative advantage (RCA) index and Grubel‐Lloyd index (GLIIT) to indicate sectors and markets where country's exports are more (or less) competitive in relation to their trading partners, present on a given destination market.FindingsB&H agrifood import, export and trade deficit are growing, but export growth rate is significantly higher, especially on SEE markets. The values of RCA and GLIIT index are indicating better overall B&H agribusiness performances at SEE market in comparison with EU 27. Findings confirm that trade liberalization opened up a window of opportunity, which is not efficiently utilized by B&H agribusiness sector.Research limitations/implicationsRCA does not provide information of how spotted advantages will evolve and overlooks impacts of public policies. The GLIIT offers no information of correlation in quality between imported and exported goods.Practical implicationsAs for the government, the main implication is the mode to improve the business environment, especially to empower institutions which have to provide services in order to meet international agreements requirements and customers' requirements.Originality/valueThere are no studies examining B&H agribusiness trade patterns, competitiveness and level of integration at SEE market which used disaggregated trade data. The outcomes could be used to craft both direct public sector policies and private business policies in order to improve sector competitiveness.
For many years rural was associated with population decline, degradation of the countryside, population aging, gender inequality, increased unemployment and poverty. However, recent research emphasise that there are peripheral areas that perform good or even better than urban areas which leads to the concept of "differential performance" between rural areas which exist in relatively similar conditions related to geography, location, available natural resources, policies, etc. It is obvious that traditional theories related to rural-urban development processes, cannot explain those performance differences of rural areas with similar characteristics. In this study the authors are presenting key aspects of main development theories that can be conected to the development of rural areas. Likewise, they present the model and significant research efforts supporting the theory on the potentials of immobile resources for creating competitive advantages in rural areas and possibility for economic development (also known as Bryden's theory). In this context, immobile resources are including natural, built, human, social and cultural capital.
The previous analysis of support to agriculture in Bosnia and Herzegovina (BiH) implied only budgetary transfers without taking account of the support originating from market-price policy measures. The purpose of this paper was to provide, for the first time, an estimate of the total support to the agricultural sector in BiH as well as the level of protection of producers through the price of agricultural products. This estimate was done using relative support indicators (Ag incentives, Erjavec, OECD), Total transfers to producers (TTP), Nominal rate of protection (NRP) and Nominal rate of assistance (NRA). The computation of these indicators for Bosnia and Herzegovina was done using the original method (Erjavec et all, 2017) suitable for use in countries with underdeveloped agricultural statistics. Percental TTP represents the share of total budget and market-price support to agriculture in the total value of agricultural production, while NRP and NRA indicators show the level of protection of producers through domestic prices of agricultural products. The NRP is defined as the percentage ratio between domestic market price and the reference one, while the NRA represents the difference between gross revenue of agricultural producers calculated based on domestic prices and gross revenue calculated based on reference prices. In this paper, EU reference prices were used for comparison with BiH domestic prices. The results of the research have shown that there is a difference between BiH and EU reference prices indicating the significant protection of BiH agricultural producers which according to the NRP averages 9 %. On the other hand, the comparison of agricultural producers' revenues calculated based on BiH prices and revenues calculated based on EU reference prices shows a significantly lower total support -by approximately 4%. Finally, looking at the share of total transfers within the value of production (TTP), it can be seen that this indicator has almost the same trend as %NRA, which shows a more significant impact of market price transfer in comparison budget support.
SažetakTipični proizvodi su još iz predbiblijskog vremena smatrani kulturnim blagom naroda i država o čemu svjedoče nađeni zapisi na više geografskih lokacija. Kao takvi su se štitili legalnim sredstvima adekvatnim vremenu i prostoru njihovog postojanja. Termin tipičnih proizvoda kao predmeta intelektualnog vlasništva prvi put je uveden 1883. godine kada je potpisan prvi multilateralni sporazum-Pariska konvencija o zaštiti geografskih oznaka. Od tada do danas potpisan je niz dokumenata kojim se reguliše pravo raspolaganja i prometovanja tipičnim proizvodima. Sve aktuelne varijacije i podvarijacije načina zaštite geografskih oznaka mogu svrstati zemlje u tri grupe i to:(1) Zemlje koje štite geografske oznake posebnim zakonom tzv. sui generis sistemom, (2) Zemlje koje štite geografske oznake kao trgovačke marke, sertifikacijske marke, kolektivne marke, ili nekim drugim zakonskim sredstvom, (3) Zemlje koje formalno ne prepoznaju i ne štite geografske oznake. Na globalnom nivou, 111 zemalja, uključujući 27 zemalja EU, štiti oznake geografskog porijekla sui generis sistemom. 56 zemalja štiti geografske oznake putem trgovačkih marki, sertifikacijskih marki, ili kolektivnih marki, gdje spadaju Australija, Kanada, Japan i SAD. Veliki broj zemalja pored sui generis sistema ima dodatnu opciju zaštite geografskih oznaka kao trgovačkih marki kao što je slučaj Kine.Ključne riječi: tipični proizvodi, intelektualno vlasništvo, geografske oznake
A significant number of small farms in Bosnia and Herzegovina (BiH) produce berry fruits. Some of them achieve good economic results, however many have significant potential for further improvement. Due to several beneficial factors, many farms decide for cultivation of a single berry fruit activity, however this decision implies a potential risk in case of unfavourable production or market conditions for that crop. The aim of this analysis is therefore to observe the extent of risk reduction by application of different diversification strategies, using two types of berry fruits; and the most efficient production plans for such a farm from a risk perspective. A linear program was utilized to prepare an optimal production plan, while quadratic risk programming served to analyse risk. Results show that diversification could be a significantly important possibility for risk reduction on such farm type. It is possible to reduce risk with capital and labour less intensive production activities. Production of the highly intensive strawberry variety Clery has highest Estimated Gross Margin (EGM), but is also associated with very high risk. If one includes raspberries or blueberries into the production plan, it is possible to significantly reduce risk while almost keeping EGM at the same level. On the other hand, if the farmer is risk averse, the highest opportunity cost for risk reduction on such a farm type is in production of raspberry and blueberry, where it is necessary to give up 3.25 EUR on average for decreasing risk for one EUR. In the other two scenarios, production of strawberry blueberry and strawberryraspberry, risk gradient values are almost the same with amount 2.57 EUR sand 2.56 EUR, respectively.
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