engleski

Significance of investments in agricultural production on the example of the rural counties of the Republic of Croatia

Local economic processes represent social processes that should contribute to local development. These processes are complex and need to be meticulously accessed. They include the stages of preparation, planning, organization, implementation, management, monitoring and control. The aim of this paper was to show how in practice the investment affects the volume of agricultural production. Research was conducted on the plant production in Osijek- Baranja, Vukovar-Srijem and Brod- Posavina County. Through the capital coefficient, the level of engagement of resources in agricultural production will be shown. Furthermore, economic development must be accompanied by the investment process. From a local aspect, investments have an impact on the increase in production of goods and services, what will be shown in the paper. Increasing the amount of investment on one hand is determined by increasing capital equipment, but on the other hand it must be accompanied by investment spending. That is why it is necessary to show the economic efficiency of investments in agricultural production, which will be done through the marginal capital coefficient and marginal efficiency coefficient. These two coefficients will show an increase in agricultural production with the aim of creating the preconditions for a sustainable state of agricultural production.

investments; plant production; capital coefficient; marginal capital coefficient; marginal coefficient of effectiveness

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