Influence of Production of Primary Products on the Rate of Inflation in the Republic of Serbia
2024
Kotarac, Đorđe | Stevanović, Simo Veljko
The optimization of production processes leads to an increase in the volume of output from the primary sector, as an instrument to protect the population from crossing the border of extreme poverty. The Republic of Serbia is a traditional producer of primary products, as evidenced by the realized surplus in the net export of agricultural crops. In the period after global financial crisis, the Republic of Serbia achieved an above-average inflation rate growth, compared to the countries of the European Union. In this research, we detect a significant participation of products from agriculture, forestry, fishing, mining to reduce the volatility of product prices. The purpose of the research is to prove the causal relationship between the rate of inflation and the volume of production primary products. The methodological part was carried out through the evaluation of the model using econometric methods. The conclusion indicates a high correlation between the production of primary outputs and the rate of inflation in the Serbian economy.
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