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Kandzija, Vinko; Donadic, Marko; Milojica, Vedran
Poslovna izvrsnost, 07/2008, Volume: 2, Issue: 2Journal Article
Liberalisation of the world's agriculture, which has been initiated by the World Trade Organisation some 50 years after the exclusion of the agriculture from the GATT's agreement, is going ahead at the new millennium turn in order to ensure efficient allocation of resources within the global agricultural sector, assuming that this will foster the growth of global economic prosperity. Consequently, the paper aims to give a scientific founded answer to the following question: Was it reasonable to enter the agriculture liberalisation process half a century after the agricultural GATT's exclusion? Respecting the available time series of data, which comprise all the interested periods of time, from the GATT's agricultural "resting" time till the entering into force of the Uruguay Round Agricultural Agreement (URAA), it was proceeded with testing the relationship between the movements of the world's agricultural trade and the economic growth at the global level, by use of regression model and the LSM-method. The research results showed that the initiation of the global agricultural liberalisation was a reasonable action, which contributes to the growth of the global economic prosperity. PUBLICATION ABSTRACT
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