Wpływ krajowych i unijnych wydatków budżetowych na alokację czynników produkcji w polskim rolnictwie
Impact of National and EU Budget Expenditures on Allocation of Production Factors in Polish Agriculture

Summary/Abstract: Budget expenditures are the main instrument for the implementation of the allocation function of public finances with reference to agriculture and rural development, because of their influence on agricultural resources and socio-economic processes occuring in the rural areas. The purpose of the article was to determine the impact of budget expenditures on the allocation of production factors, (land, labor and capital) in the Polish agriculture in 1995–2016. The analysis took into consideration the expenses of the national budget for agriculture, rural development and agricultural markets, including expenditure on the Agricultural Social Insurance Fund and expenditure from European Union funds for rural areas and agriculture. It was assumed that a significant increase of domestic and EU budget expenditures in total, which was related to the provision of Polish agriculture with instruments of the Common Agricultural Policy, would result in changes in the allocation of production factors in this sector. The research confirmed that the significant increase in budget expenditure on agriculture and rural development since 2004 has contributed to positive changes in this area. The allocative effects of budget expenditure growth contributed to the improvement of the economic effectiveness of production factors in agriculture, including the increase of land productivity and profitability of work.

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