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Factor Advantages of the Republic of Serbia in Agricultural Production and a Need for Accomplishment of Sustainable Competitive Advantage in the Market
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Author(s): Vesna Parausic (Institute of Agricultural Economics, Belgrade, Serbia), Velibor Potrebic (Institute of Agricultural Economics, Belgrade, Serbia)and Zoran Simonovic (Institute of Agricultural Economics, Belgrade, Serbia)
Copyright: 2013
Pages: 17
Source title:
Sustainable Technologies, Policies, and Constraints in the Green Economy
Source Author(s)/Editor(s): Andrei Jean-Vasile (Romanian Academy, National Institute for Economic Research "Costin C. Kiriţescu", Bucharest, Romania), Turek Rahoveanu Adrian (Institute of Research for Agricultural Economics and Rural Development, Romania), Jonel Subic (Institute of Agricultural Economics, Belgrade, Serbia)and Dorel Dusmanescu (Petroleum - Gas University of Ploiesti, Romania)
DOI: 10.4018/978-1-4666-4098-6.ch004
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Abstract
A significant wealth, which a country can have in factor conditions (abundance of natural resources, available labor with tradition in agricultural production), can enable to the country a good starting position or good initial terms for development of intensive and competitive agricultural production. However, by themselves, these factor conditions will not provide to the country high productivity and employment in agriculture, high life standard of agricultural producers, and high export results. Numerous theoretical papers point out the fact that for highly developed and intensive agriculture, which provides to the country and the agricultural producers high employment and life standard, it is necessary to build and strengthen new sources of competitive advantage, of which the most important are: research and development activities, associations and joining in clusters, and setting up a stimulating micro-economic business environment. The authors in the chapter determine, by statistical and comparative analysis, a working hypothesis that favorable factor conditions in agriculture by themselves do not lead to accomplishment and keeping up a sustainable competitive advantage of the country, on domestic and foreign market. By analyzing export results of selected European countries in the field of agriculture, the authors determine conditions that are necessary for a country to achieve high and sustainable competitive advantage on the international market. The chapter also presents the conditions needed to set up “new” sustainable sources of agricultural producers` competitive advantage in the Republic of Serbia.
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