CAP support policy impact on Bulgarian agriculture

Abstract

The main objective of the study is to identify the main areas of impact of the CAP in Bulgarian agriculture and to analyze the impact that subsidies on areas and livestock in certain industries. The development of agriculture during the years of EU membership shows a high dependency and relationship between subsidies and production, which is revealed by the size of the area in particular crops and the number of livestock. This influence is different in the different sectors, with much stronger connection and effect in certain productions, while in others the impact is insignificant. By estimating the coefficient of determination,the impact and the extent to which subsidies affect and drive the development of certain industries is judged. Through causality analysis, the explanation is outlined, both upon ongoing processes in the analyzed sectors and on the identification of the development trends. The results of this study are complemented by a descriptive analysis of the current situation and trends in the productions observed, which shows the extent to which the different agricultural support policy contributes to changes in agricultural industry development. This allows better understanding for the effects and processes that are taking place in Bulgarian agriculture since the accession to the EU.