ECONOMIC ANALYSIS OF THE BAN ON FOREIGNERS ACQUIRING PROPERTY RIGHTS ON AGRICULTURAL LAND IN SERBIA

In Serbia it is prescribed by The Law on Agricultural Land that foreign legal or natural persons could not become owners of agricultural land. The aim of this paper is to show that such a norm creates an economic environment where an optimal allocation of agricultural land as a production factor could not be achieved. The cost - benefit analysis shows that main gainers are Serbian producers and buyers of land who are able to realize a monopoly profit, whereas sellers of agricultural land are at loss, getting a lower economic rent, as well as foreign buyers. A total loss of domestic sellers only is bigger than a total profit of buyers. In the end, it is being pointed to a relativity of the ban, in the sense of a possibility to easily get past the ban through provisions of The Law on Foreign Trade. The conclusion points out that an eventual suspension of the ban would stimulate efficiency of Serbian economy and an increase in the net welfare.


Variant title:
EKONOMSKA I PRAVNA ANALIZA ZABRANE STRANCIMA DA STIČU PRAVO SVOJINE NA POLJOPRIVREDNOM ZEMLJIŠTU U SRBIJI
Editor(s):
Cvijanovic, Drago
Issue Date:
2013-10
Publication Type:
Journal Article
DOI and Other Identifiers:
UDC 338.43:63 CIP 33:63(497.11) ISSN 0352-3462 COBISS.SR-ID 27671 (Other)
PURL Identifier:
http://purl.umn.edu/158250
Published in:
Volume 60, Number 3
Economics of Agriculture
Page range:
479-491
Total Pages:
13
JEL Codes:
К11
Note:
Review Article
Series Statement:
Economics of Agriculture 3/2013
UDC:332.33:347.235:2-488.8(497.11)




 Record created 2017-04-01, last modified 2017-05-27

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