Published in Scientific Papers. Series "Management, Economic Engineering in Agriculture and rural development", Vol. 12, Issue 3
Written by Anatol RACUL, Dragoş CIMPOIEŞ
This paper analyses the subsidies allocation in the agricultural sector of the Republic of Moldova and the impact of subsidies on agricultural outputs and profits. The methodology is based on Data Envelopment Analysis in order to define and calculate technical efficiency for each corporate farm. The empirical application is made on 451 Moldovan farms. Three main hypotheses where tested concerning accumulation of current assets and absorption of subsidies by farms with different degrees of technical efficiency. In this case, the farms with lower overall efficiency are more sensitive to the state support and are able to absorb larger amount of subsidies. Regression analysis was used to provide a framework for studying the implemented policy reflected by the data in use.