European Integration: The Case of Agricultural Farms in Slovak Republic
European Integration: The Case of Agricultural Farms in Slovak Republic

Summary/Abstract: This study tries to quantitatively estimate the implication of integration on farms in Slovak republic. The model used for assessment assumes perfect competition and also assumes that farmers are risk neutral. The modelling technique applied in this paper is that of linear programming and theoretical background is based on microeconomic mathematical programming sector model derived by McCarl and Spreen. The results show that the integration led to increasing level of farms’ profi-tability However if there were no agricultural protection then only the farms si-tuated in regions with better climatic conditions would survive in competitive environment with no subsidies. Another main result of the study is that current Slovak agricultural policy gives strong support to farms situated in regions with worse production conditions in contrast to what it would be under Common agricultural policy of EU.

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