Aim of study: This paper evaluates the effect of pre-accession EU grants on beneficiaries in the agri-food sector using a quasi-experimental approach on the case of Croatia. An insight into the available literature reveals a lack of rigorous research and evaluation of the results of using these funds in Croatia as well as in other beneficiary countries.Area of study: Republic of Croatia, Europe (2006–2017).Material and methods: Two datasets were used: (1) financial and structural data on the population of Croatian enterprises for the 2003–2017 period, and (2) data on SAPARD and IPARD grants in the 2007–2016 period. Data were analyzed using counterfactual impact analysis, i.e., a combination of difference-in-difference approach and propensity score matching.Main results: The grants showed to have a positive effect on firm survival, as well as positive effects on obtaining bank loans and increasing turnover, value added, employment, and total factor productivity. Heterogeneous treatment effects show that the grants resulted in the greatest additionality for micro-sized firms located in Central Croatia. Cost-benefit analysis estimates an increase in the value added, which outweighs scheme-induced costs by 120% in the short run and 90% in the mid run.Research highlights: Pre-accession programs in Croatia had a positive impact on the beneficiaries' growth and business performance indicators in both short and mid term. This paper also promotes the application of similar research in other EU candidate countries where the same or similar funds are implemented.
The EU pre-accession funds available to EU candidate countries play an important role in their adjustment for membership. Croatia, as a candidate country, used the Special Pre-Accession Program for Agriculture and Rural Development and the Instrument for Pre-Accession Assistance – Rural Development, one of the goals of which was to strengthen the competitiveness of businesses in the agriculture and food production sectors. The usage period covered two EU programming periods, as well as a recession period in Croatia that lasted from 2009 to 2014. An insight into the available literature reveals a lack of rigorous research and evaluation of the results of using these funds in Croatia as well as in other beneficiary countries. This paper evaluates the effect of pre-accession EU grants on beneficiaries in the agri-food sector using a quasi-experimental approach on the case of Croatia. The grants were shown to have a positive effect on firm survival, as well as positive effects on obtaining bank loans and increasing turnover, value added, employment, and total factor productivity. Heterogeneous treatment effects show that the grants resulted in the greatest additionality for micro-sized firms located in Central Croatia. Cost-benefit analysis estimates an increase in the value added, which outweighs scheme-induced costs by 120 percent in the short run and 90 percent in the mid run.
Postojeće procjene utjecaja programa SAPARD i IPARD u Hrvatskoj ne daju informaciju o njihovom učinku na financijske pokazatelje poslovanja korisnika potpora, kako na razini pojedinog korisnika tako i na agregatnoj razini. Postojeće ex post evaluacije se bave procjenom uspješnosti provedbe programa korištenjem indikatora ostvarenja kao što su broj korisnika i isplaćeni iznos potpore po mjerama i ukupno za program. Ovim indikatorima možemo odrediti uspješnost administracije (ministarstava i agencije za plaćanja), no ne i utjecaj na poslovni uspjeh korisnika te ne možemo odrediti širu javnu, odnosno društvenu korist. U ovom radu je istražena povezanost potpora SAPARD-a i IPARD-a s financijskim pokazateljima uspješnosti poduzeća korisnika primjenom usporedne analize pokazatelja prije dobivanja potpore i pokazatelja u razdoblju do pet godina nakon dobivanja potpore. Gledano za sve korisnike zajedno, utvrđeno je da financijski pokazatelji nakon dobivanja potpore nisu značajno različiti od istih pokazatelja prije dobivanja potpore. Provjerom po skupinama korisnika s obzirom na područje djelatnosti i veličinu poduzeća, značajne razlike za pojedine pokazatelje ustanovljene su kod određenih skupina po veličini. Rezultati pokazuju da su u razredu mikro poduzeća prihod i profitabilnost značajno veći u prve dvije do tri godine nakon primanja potpore. Zanimljivo je da su značajne razlike kod velikih poduzeća ustanovljene u petoj godini od dobivanja potpore, pri čemu su prihodi od prodaje značajno veći nego prije dobivanja potpore, dok su profitabilnost, zaposlenost i financijska stabilnost manji. Općenito gledano, rezultati ukazuju na slabu vezu između potpora i promatranih pokazatelja. No, s obzirom na to da je u istraživanju primijenjen naive pristup koji ne omogućuje kauzalno zaključivanje, to je za preciznu ocjenu doprinosa potpora uočenim razlikama potrebno obaviti dodatna istraživanja primjenom protučinjeničnog ili sličnog pristupa. ; The existing evaluations of SAPARD and IPARD in Croatia do not provide information on their impact on financial performance of beneficiaries, both at individual company and at aggregate level. Existing ex-post evaluations are concerned with assessing the implementation success of the programs using performance indicators such as the number of beneficiaries and the amount of support granted per measure and in total. These indicators can be used to determine the success of public administration (ministries and paying agency??) but not to determine the influence on business success of beneficiaries or to determine the broader public or social benefit. This paper explores the relation of SAPARD and IPARD grants with the financial performance indicators of the beneficiary companies, using a comparative analysis of pre-grant indicators and indicators up to 5 years after the grant. Taken all the beneficiaries together, the financial indicators after receiving grants were not significantly different from the same indicators prior to receiving grants. Through comparison by groups of beneficiaries with regard to the business sector and size of the company, significant differences in individual indicators were found for certain groups by size. The results show that in the micro-enterprise class, sales revenues and profitability are significantly higher in the first 2-3 years after receiving support. Interestingly, significant differences are found in large enterprises in the 5th year after receipt of the aid, with sales revenues significantly higher than before receiving the aid, while profitability, employment and financial stability are lower. In general, the results indicate a weak link between grants and observed indicators. However, since a naive approach was applied, which does not allow causal inference, additional investigations are required to assess the contribution of the grants to the differences observed.
