۱٫ Introduction

۲٫ Material and Methods

۳٫ Results and Discussion

۴٫ Conclusion

Acknowledgements

References

Almost every country was heading a large portion of their income on agricultural subsidies. The agricultural subsidies are an essential aspect of agriculture and play an important role in international trade. A policy to support farming incomes in the European Union is called the Common Agricultural Policy. It is the complicated policy that includes many tools. An impact of policy of EU agricultural support on the economic performance of agricultural enterprises is therefore an interesting question, especially for policy makers. The agriculture in Slovakia has undergone significant changes, not only in terms of its position in the national economy, but also in terms of its importance at the regional level. There are still persistent differences between better and worse natural conditions as well as economic and social differences with a possible impact on the level of gross agricultural production in different regions of Slovakia. The aim of this paper is to quantify the dependence of agricultural production from the subsidies granted in the context of regions under the NUTS III classification. For the calculation, we used Pearson correlation coefficient that determines the direction and rate of statistical dependence force of two numeric variables. The analysis confirmed our assumption, the result of which is that between amount of gross agricultural production and the volume of subsidies granted is a strong correlation.

Introduction

The current trend towards trade liberalization and growth of the global nature of the world economy triggered a series of discussions on whether globalization is a driving force for growth and development or a curse for the society. The agricultural sector is a central part of this issue because the provision of agricultural subsidies is without question the focal point of last trade negotiations. Matter of fact, most countries use some form of subsidies in order to protect its agriculture (Koo, Won and Kennedy 2006). Almost every country was heading a large portion of their income on agricultural subsidies. The agricultural subsidies are an essential aspect of agriculture and play an important role in international trade. They are considered the most effective mechanism for accelerating the growth of the agricultural sector. They are paid to farmers and agribusiness operators to supplement their income in order to management of offer of agricultural commodities or influence of the cost and supply of these commodities in the international markets (Swain 2009). The main argument for the granting of these subsidies is the fact that the domestic farmers were not able to compete with foreign imports without mentioned financial support of state. The removal of subsidies would contribute to increased the income disparities between rural and urban areas, and that would lead to exit of domestic farmers from the industry. The loss of domestic agricultural sector is considered to be undesirable fact for various reasons, including the increase in unemployment and the loss of traditional way of life. In addition, a country that is not self-sufficient in food production can be more vulnerable to commercial pressure and the global food crisis (Henningsen et al., 2009).