Published in Scientific Papers. Series "Management, Economic Engineering in Agriculture and rural development", Vol. 21 ISSUE 2
Written by Liliana CIMPOIEȘ
Governmental support policy is important to achieve growth and sustainable development of important sectors for the economy. The requirements of such an involvement is based on frequent cases of market failures. Agricultural subsidizing policy is an important mechanism through which the government can support this sector. One of the main instruments of intervention in the agricultural sector are subsidies. Subsidies aim to influence or improve food/agricultural prices/costs, food supply, farm profits and incomes. The aim of this paper is to analyze the evolution of the current support/subsidizing policy, through the allocation and distribution of farm subsidies in Moldova as main economic incentives to support the development of the agricultural sector. The research is based on secondary data analysis related to the amount of allocated subsidies, number of beneficiaries and their distribution provided by the Agency of Interventions and Payments in Agriculture. Also, some specific macroeconomic data related to the agricultural sector performance from National Bureau of Statistics was used. The referred time series analysis belongs to 2010-2019. Despite the fact that agriculture is an important sector for economic development in Moldova, the financial resources allocated for its support are limited. Subsidized policy should target new aspects related to improving the access to information, introducing annual assessment of the efficiency of allocated funds to support agriculture and rural development, value chain development.
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