Journal of Bio-Based Marketing (Sep 2024)
AGRICULTURE AS THE CARRIER OF THE ECONOMIC DEVELOPMENT OF KOSOVO
Abstract
In the past, agricultural production provided practically all the needs of life, not only providing food for the population and carrying out all processes of processing this food to its final forms within agriculture but also providing housing, clothing, heat, light, etc. The process of economic development meant moving some of the economic functions from agriculture and turning them into specialized industrial branches. Today, agricultural production in developed countries is mainly reduced to the production of raw materials for the food industry. However, as a food producer, agriculture is largely dependent on other sectors, as the products of those sectors enter as a significant component in the costs of agricultural production. The basic role of agriculture in economic development consists in ensuring sufficient agricultural yield, agriculture also performs other functions that are also significant. In the initial stages of development, with the expansion of agricultural production, the most important source of means of payment is acquired, which serves for the purchase of modern means of production necessary for development. This function is closely related to the function of producing agricultural output. In the absence of other sources of funds, the agricultural output is not only used to supply food but a part is exported for the purchase of industrial fixed capital.