(CEP USM, 2024) Batereanu, Lucia; Cimpoeș, Dragoș; Herzfeld, Thomas
In today’s rapidly changing economic landscape, the importance of a farm’s competitiveness
is more critical than ever, serving as a decisive factor for the survival and prosperity
of firms. The Republic of Moldova’s agricultural sector holds a crucial role while remaining
highly vulnerable to various influences. The Government relies on subsidies administered by
the Agency of Intervention and Payments for Agriculture (AIPA) to enhance the sector’s growth
and competitiveness. This paper conducts a comparative analysis between subsidy recipients
and non-recipients. It aims to examine the impact of post-investment subsidies on farms’ competitiveness
using data from a survey conducted in the summer of 2021, which included 685
farms. The competitiveness of the farm businesses on the markets was assessed through self-assessment
questions included in the survey, shedding light on the challenges faced by farms, including
issues related to product prices, price stability, and competition from other producers.
The analysis provides insights into the interrelationship between post-investment subsidies and
farms’ competitiveness in Moldova.
