18. Analysis of the investment environment in agriculture

Author: Vasko Koprivlenski, Vesela Uzunova–Kostova

DOI: n/a

Abstract

The article analyzes the main factors influencing investment activity, based on specific statistics. The following factors were examined: gross value added in agriculture; socio-demographic status of the sector; main economic indicators of the sector, such as agricultural production by sectors and the ratio between crop and livestock production; influence of the market prices, production costs and hence the profitability of the key subsectors of the sector; impact of interest rates on bank loans and the expected rate of return on investments.

An important aspect of the research is the assessment of the market and its receptivity capability. The analysis shows that the resources used by Bulgarian agriculture as a member-state of the EU allow for the activation of the investment processes in agriculture in the coming years, as well as for creation of opportunities for increased competitiveness.