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.