Free trade zone are spatially specific areas, separate from other government and customs territories in which they are, more or less, suspended national, customs, foreign exchange, foreign trade and tax regulations of the country of domicile, privileges, exemptions and incentives attract foreign and domestic investors to invest their resources in industrial production, processing, refinement and preparation of goods for the market, as well as the tasks of storage, distribution, exportation, importation and transportation of goods in order to increase the international competitiveness of goods. Agricultural products have a special place in free trade zones, because the limited scope of liberalization in agricultural products (Cejvanovic et al. 2009). In December 2006 in Bucharest signed the amending agreement and the accession of Central European Free Trade Agreement (CEFTA). Name of the agreement was changed to title CEFTA-2006. The signatories to the CEFTA-2006 are: the Republic of Serbia, the Republic of Albania, Bosnia and Herzegovina, Croatia, Macedonia, Republic of Moldova, Republic of Montenegro, the Republic of Romania, the Republic of Bulgaria and UNMIK / Kosovo. Romania and Bulgaria have withdrawn from the CEFTA-2006 01 January 2007, it became a full member of EU. It entered into force in the second half of 2007. year. The main aim of this paper is to present and analyze the effects of the CEFTA-2006 in the foreign trade of agricultural products in Bosnia and Herzegovina, with members of the CEFTA-2006. CEFTA-2006 had an impact on the composition and volume of foreign trade of agricultural products of Bosnia and Herzegovina and other states within the CEFTA-2006.
Agriculture was greatly affected by the transitional shocks of economic and social systems in Bosnia and Herzegovina (B&H). B&H is evaluated as the country that, to this point, does not have a very fast reform in this domain. There are several reasons for this. First of all, B&H is still in the process of country reconstruction after the wars and even today a high share of potentials and efforts have been directed toward these purposes. On the other hand, B&H has a very complex organizational structure in the political sense with numerous political entities. Each entity has its own administrative structure and policies concerning economic policy and within its agricultural and rural policies. Recent analyses show that more than one third of the support set aside for agriculture and rural areas in B&H has been linked with the support of production and only a little more than 10% for the purposes of rural development. These trends are not in accordance with the current trends present in EU countries where support for production has been abandoned for the support of the multifunctional rural development purposes, increased income as well as the quality of life within rural segments of the population.
In agriculture transition conditions in Federation of Bosnia and Herzegovina, conceptualization of modern agricultural household is developing slowly and it is not on the satisfying level. Main feature of agriculture in Federation of Bosnia and Herzegovina in the future will be based on small and mid-sized agricultural households. Elements of production diversity, and certain extensively will be kept for a while and that will keep relatively higher number of people in rural areas. Number of people, lower level of production specialization and preserved elements of traditional solidarity, participation and identification of people from rural area with their community are preconditions for preserving and development of rural community. Also there is possibility to develop new content of rurality, based on natural, technical and other type of new agrarity and rurality, which presumes partial agricultural activities, in other words partial life in the village, but based on new sociocultural standards. In that context, more people could be connected to the village, either by working there without living, or living there permanently and not working in agriculture, which is becoming frequent case in developed world. Those are modern forms of ruralization or neo-ruralization which can be used as possible theoretical redefinition of current rural paradigms, especially in connection to the modernization theories. In the profiling process of rural areas in new conditions, institution of village could be of great use, and have to be developed and adapted, with forming the new ones. This applies to the traditional village institutions (country family, school, religious facilities, agricultural community, etc), but also to the new ones - such as modern agencies for rural development on national, regional and local level which exists in many countries in the world.
This paper considers the essence, significance and necessity of application of the marketing approach, i.e. planning, organizing and control of marketing activities in tourist and rural tourist policy, intending to add to competitiveness of the tourism offer in Bosnia and Herzegovina. The paper elaborates theoretic and substantial aspects of marketing element in tourism and rural tourism, with a special view on importance and contribution of marketing approach in competitiveness of tourism and rural tourism offer in Bosnia and Herzegovina. The marketing approach in tourism and rural tourism, presented in this work, may serve as a basis for creating policy and developing marketing approach in B&H tourism and rural tourism.
Bosnia and Herzegovina has a defi cit of most agricultural products, and that is why it is compelled to import signifi cant quantities of food. In order to increase the degree of self-suffi ciency, particularly for those products that have good potentials for production growth, creators of agrarian policy try to apply diff erent agrarian policy measures for stimulation of agricultural production growth. One production with good potential is cattle production, i.e. production of milk and meat, for which Bosnia and Herzegovina has signifi cant development potentials, and for whose advancement there have been provided diff erent supporting measures. Th is paper presents the possible application of the cost-benefi t analysis in evaluation of effi ciency for some supporting agrarian policy measures adopted in order to improve the cattle production in Bosnia and Herzegovina . Th e cost-benefi t analysis was completed for the sixyear period, taking into account the productive period of bought heifer. Th e analysis includes economic and fi nancial parameters (infl ows and outfl ows), which annual amounts were discounted to the present values by utilization of the average social discount rate, in order to put all annual amounts at the same trend of calculation and to account for opportunity capital costs as well.
Bosnia and Herzegovina has a defi cit of most agricultural products, and that is why it is compelled to import signifi cant quantities of food. In order to increase the degree of self-suffi ciency, particularly for those products that have good potentials for production growth, creators of agrarian policy try to apply diff erent agrarian policy measures for stimulation of agricultural production growth. One production with good potential is cattle production, i.e. production of milk and meat, for which Bosnia and Herzegovina has signifi cant development potentials, and for whose advancement there have been provided diff erent supporting measures. Th is paper presents the possible application of the cost-benefi t analysis in evaluation of effi ciency for some supporting agrarian policy measures adopted in order to improve the cattle production in Bosnia and Herzegovina . Th e cost-benefi t analysis was completed for the sixyear period, taking into account the productive period of bought heifer. Th e analysis includes economic and fi nancial parameters (infl ows and outfl ows), which annual amounts were discounted to the present values by utilization of the average social discount rate, in order to put all annual amounts at the same trend of calculation and to account for opportunity capital costs as well.
Speaking about transition in agriculture, we think on agriculture in transition countries, that is Central and Eastern European Countries. Such development is observed from the perspective of the European Union, discussing about possibilities as well as restrictions brought with accession of the CEECs to the Union, but also from the CEECs point of view. In this analysis we examine some consequences of changes in agricultural policy in the case of Bosnia and Herzegovina. The general conception should help in recognizing strategical guidelines for local development of agriculture and rural areas within the current and coming frame of Bosnia and Herzegovina. By the process of adjusting the agricultural sector, but also the agricultural policy, it should be improved competitiveness of domestic agriculture. That is why in this paper we use the cost-benefi t analysis in estimation the consequences of changes in subsidies and custom rates in specifi c case of construction new plantations and production of apples, that is in evaluation advantages and limitations of agriculture. The results of the analysis provide more objective illustration of domestic agricultural sector in internatioal environment.
Investments represent basic source and mean for creation and increase of national wealth in each country, then for undisturbed development of reproduction process as well as for implementation of development goals. Structural adjustment of economy, particular economic branches and economic subjects, beside other relevant factors, to a great extent depend upon adequate size and structure of available investment capital. Agrarian economy of transition countries is facing with the capital lack problem for investment needs as well as structural adjustment toward requirements necessary as an imperative during preparation period for European integrations. In the situation when available investment capital is lacking, while the needs for the capital are significant, it is very important to direct properly existing financial resources into those purposes and projects where it could be achieved the highest investment economic effectiveness. Having in mind segmentation of land property both in Serbia and in surrounding countries, a need for investments into the land purchase appears as one of priority investment purposes. In this paper it is presented the microeconomic model of capital investments into agricultural land as one of possible methodological approaches in adequate and correct decisionmaking process on investments into agricultural land purchase.
Subsidies in apple production represent one kind of agrarian policy measures that serve for improvement of fruit production in Bosnia and Herzegovina, in order to be reduced existing defi cit as well as to be increased degree of self-suffi ciency. Basic target of this paper is to examine are there some positive effects of the existing subsidizing measures onto fruit production, particularly at an example of apple production. In addition, analysis carried out in this research is aiming at pointing out both assessment of achieved positive results and negative implications of applied agrarian policy measures in Bosnia and Herzegovina (i.e. subsidizing in the case of new apple plantations). By application of appropriate economic analysis methods onto selected indicators of the state intervention in agriculture, in this paper it is carried out an assessment of advantages and limitations in cited subsidizing agrarian policy measures. The results of analysis could contribute to the comprehension of objective picture on agricultural sector position in Bosnia and Herzegovina within an international environment, as well as to a more adequate choice of those agrarian policy measures which will have the greatest effects onto fruit production increase and on degree of domestic demand satisfaction as well, and fi nally on substitution of import as well as decrease in the country balance of payments defi cit.
General trend of decreasing agricultural land area and global population increase sets new challenges for apple producers. This basically calls for more effi cient apple production. The integrated apple production is based on principles that combine fi nancially viable intensive production and simultaneously consider environment standards could be a solution to emerging problems in apple production. For implementation of this systems new technology standards and orchard management must be applied. The aim of this paper is the cost benefi t analysis of integrated apple production in BIH. The result show that integrated apple production in BIH is economically viable, assuming that expected yield and prices would be achieved.
Agricultural Extension (Expert) Service is the institutional system functioning within more than 100 worldwide countries whose economies are market orientated. The role of the Agricultural and extension (expert) service reflects primarily in giving of advices - from the expert point of view, to commercial farms (those ones producing products for market and not only for own consumption); aiming to increase incomes, namely profit. Basic tasks and goals of the Agricultural and advisable service are elaborated in this study. Cost - benefit analyse is the very effective instrument providing estimate of economical justification the state level investment into agricultural and advisable service.
Before making a decision to invest in fruit growing, an investor needs to have the basic information on which to base his decision. This information contains sufficient economic indicators to form the basis for the decision making. The decision should be based, first of all, on economic profitability of the investment. Cost-benefit analysis is a method which provides the decision maker with the information about a number of economic indicators regarding the desired investment, from its profitability and competitiveness to the return on investment period, etc. This paper deals with the cost-benefit analysis in the decision-making process concerning economic profitability of investing in agricultural production, namely the newly planted fruit. Cost-benefit analysis has many advantages compared with the other known methods. It has proved very useful in agricultural production since it makes it possible to estimate the profitability of investment in very specific conditions of agricultural production, taking into account numerous factors of its economic efficiency as well as the main effects that may be expected both by individual producers and the social community as a whole.
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