Mapping Structural Change Through Institutional Embeddedness: Evidence from the Bulgarian Dairy Sector

Authors:

Pages: 192-199
DOI: https://doi.org/10.54664/SNQB7842

Abstract:

This study investigates the structural transformation of Bulgaria’s dairy sector over the period 2012–2022 by developing a composite Structural Index (SI) based on three core indicators: utilized agricultural area (UAA), livestock units (LU), and non-investment subsidies (SE605). Grounded in structural and institutional economics, the index captures key dimensions of scale, production intensity, and institutional embeddedness. The analysis identifies three distinct development phases–low, transitional, and high–each corresponding to shifts in farm structure, policy responsiveness, and subsidy allocation under the EU’s Common Agricultural Policy (CAP). Results show a transition from fragmented, low-capital farms to consolidated, subsidy-dependent units with increased market integration. The study highlights the risks of structural polarization and path dependence and provides policy recommendations to support vulnerable medium-scale farms, improve subsidy conditionality, and promote sustainable intensification. The Structural Index offers a replicable and policy-relevant tool for monitoring agrarian dynamics in post-socialist contexts

Keywords:

structural transformation; dairy farming; Common Agricultural Policy (CAP); subsidies; composite inde

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