The Role of Agribusiness in European Union Countries
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Publication date: 2013-03-31
GNPJE 2013;262(3):79–100
The article aims to determine the role of agribusiness in European Union countries depending on their level of economic development. The author compares the internal structure and share of agribusiness in individual economies with regard to output and gross value added. The article also examines the relationship between the share of agriculture and the agribusiness sector in national income, on the one hand, and the level of gross value added per capita, on the other. The main research method is an input-output analysis based on the balance of flows between sectors. The research shows that in countries with a high level of GDP per capita the role of agribusiness in the economy is growing in connection with demand for high-value added food products. This means that economic growth is one of the main requirements to produce changes in agribusiness, the author says. Another requirement is that it is necessary to take full advantage of the conditions created by the rapidly growing GDP per capita, the author adds. Those member countries that joined the European Union after 2004 have seen desirable changes in the structure of agribusiness, the article says: the role of agriculture has decreased considerably, while the importance of the food industry and of companies manufacturing means of production and providing services is growing, in line with trends in countries with a higher level of socioeconomic development. From 1995 to 2007, the role of agribusiness in the economies of individual European Union countries decreased gradually, reflecting global trends. However, in countries with a lower level of socioeconomic development these changes have been much slower than in Western Europe, the article says.