This paper analyses the impact of the Common Agricultural Policy (CAP) on economic growth and performance of many economic sectors related to the agricultural sector in Bulgaria, Croatia and Slovenia. Comparing the main economic indicators before and after EU integration, the study identifies both positive and negative trends.
The results show that in Bulgaria, economic growth slowed down slightly after the implementation of the CAP, while on the other hand unemployment decreased and agricultural exports and direct payments to this sector increased significantly, reflecting improved support and competitiveness in the agricultural sector.
In Croatia, GDP growth strengthened, accompanied by a modest decrease in unemployment and a significant increase in agricultural production and subsidies, which were a result of the work carried out over the years and the long period of membership. Both countries experienced a decrease in the number of farms, but on the other hand increasing their productivity and size, while increasing efficiency in the agricultural sector.
Overall, the findings show that CAP integration has contributed to improving agricultural performance and labor market conditions, although its effects on overall economic growth remain mixed as some sectors have experienced growth while others have experienced declines. The impact of the policy appears to be strongest in promoting modernization, investment, and export capacity within agriculture.
The role of banking institutions in the Republic of Kosovo remains on transferring of funds from those who have a surplus to those who have a deficit. Banks make significant contribution to increase the economy in order to provide an increase on consummation, investments, savings, contributing directly to the increase in the well-being of families and the economy in general. The individuals and families encounter financial constraints or aim to expand their investments, they frequently seek support from banking institutions.
Despite the small economic growth in the Republic of Kosovo, the banking sector has expanded, witnessing an increase in profits and deposits over the years. This paper reflects the financial indicators in the years from 2010 to 2022. The study utilized data sourced from the Central Bank of the Republic of Kosovo, and for analysing the impact of these variables on banking system profit, we used econometric methods such as OLS, analysis of correlation and trend analysis.
The selected indicators for analysis include Profitability, ROA, ROE, Deposits, Loans, NPL, Employees, Branches, and GDP. The results show that increases in deposits lead to increase profitability, whereas increases in loans have a negative impact on profitability within the banking system.