Valstybės finansinės paramos įtaka ūkininkų pelnui
INFLUENCE OF GOVERNMENT FINANCIAL SUPPORT ON THE PROFIT OF FARMS

Summary/Abstract: Specialists in economics were always interested in governmental interventions to business support. Nevertheless the polemic regarding governmental support provided to business is not over and still persists. In order to create theoretical approach for evaluation of financial support for business, a systematic and comparative analysis of scientific literature was referred to in the study. The following methods were applied in the research: correlation analysis and analysis of scenarios (influence of support on profit), logical abstract method (under evaluation of support benefit allocation within the chain of the same branch). As positively judging the support, the following economical schools may be highlighted: Mercantilists, Keynesians, Institutionalists, as well as the conceptions of sustainable development and Knowledge–based Economy. Although they differ a lot, i.e. differ in research methods applied, but their methodology is related by one common feature – methodological position to evaluate economy in holistic approach. Having viewed from this position and evaluating economy at macro level scientists usually make the conclusion, that intervention as well as governmental support is a proper way to solve economical problems. While evaluating the support means, it is important to determine, whether the benefit remains for the business it is allocated to. Exactly on this aspect there are not thorough research made. It is supposed that the benefit may be expressed by a profit. Nobody doubts that income may increase due to the support, but the support may also cause the increase in costs of businessmen (farmers) and thus the benefit may be reallocated to other market participants. It was determined, that influence of manufacture subsidies and investment support on the profit (without including manufacture subsidies) is very weak (R2 – 0,0046 and 0,0013 respectively). However an average influence of manufacture subsidies and investment support on the profit (with subsidies) was determined R2 – 0,69 and 0,55 respectively. This allows stating that both manufacture subsidies, and investments help to defray expenses and result in higher profit, but farmers are not receiving a real benefit from these support means. The benefit from the support received re-allocates for other market members, due to the possibility to make profit out of support received by the farms or due to better negotiating positions. Taking into account one year lag, a very strong influence of support for knowledge spread on farmers‘ profit was noticed, respectively on the profit without subsidies R2 – 0,90, and profit with subsidies R2 – 0,97. Upon governmental wish to increase farmers’ competitive ability, the most efficient way, compared to the other support means, to do so would be rendering the support for knowledge spread, since the buy off is the highest among all support types (compared to other support forms: investment support and support for manufacture (subsidies

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