Published in Scientific Papers. Series "Management, Economic Engineering in Agriculture and rural development", Vol. 25 ISSUE 3
Written by Nadezhda BLAGOEVA

The focus of this study is to evaluate the effects of fixed capital investments, credit availability, and net entrepreneurial income on the gross value added of Bulgaria's agricultural sector during the years 2004 to 2022. The primary goal of this research is to investigate the development of gross value added in Bulgaria's agriculture, focusing on the effects of fixed asset investments, the influence of agricultural sector financing and the relevance of net entrepreneurial income. This investigation involved the creation and testing of three distinct hypotheses. Multiple regression analysis is utilized to explore how the sector's gross value added, investment activities, credit resources, and entrepreneurial income are interrelated in terms of both direction and strength. Data from Eurostat, FAOSTAT, and the Bulgarian National Bank (BNB) are used for the study. The results allow us to conclude that these three indicators strongly correlate with gross value added and explain a significant part of its dynamics. It has been established that investments in fixed capital in agriculture and net entrepreneurial income have a strong positive impact on gross value-added growth. A positive effect has also been demonstrated regarding credit but with statistical significance at a higher confidence interval. As a result, the study suggests broadening the range of financial tools available for agricultural lending, encouraging capital investment in agriculture, implementing tax relief measures, and easing administrative procedures for small and medium-sized enterprises to foster entrepreneurship. Collectively, these actions would support the sustainable growth of the agricultural sector while improving its productivity and global competitiveness.

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