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IPARD is the fifth component of the Instrument for Pre-Accession Assistance (IPA) of the European Union (EU) established in 2006. The implementation of IPARD Programme started in late 2009, and an in-depth analysis of its utilization is missing. Official annual reports on the implementation are available at the managing authority website, but for a better insight additional research is needed. The main goal of this paper is to assess the impact of IPA funds on the country's competitiveness considering data on funds specifically intended for agriculture (IPARD), and their impact on the export of agricultural products to beneficiary countries. In addition, analyses of available data on starting a business and trading across borders, and their correlation with data on absorption of IPA funds, were used to determine the importance of EU pre-accession funds for the country's competitiveness. This research is based mainly on the available data of EU statistics and Doing Business reports of the World Bank. Other sources of information are from the Agricultural Payments Agency, Ministry of Finance and Treasury Administration of the Republic of Serbia. The authors consider that this paper is contributing to the knowledge base regarding the structure of IPARD Programme and EU funds available to candidate countries in general. The conclusions reached can help improve the implementation of IPARD funds in Serbia in the future, since the conclusions indicate the main problems that are affecting the absorption of the programme funds.

The importance of EU pre-accession funds for agriculture and their influence on country's competitiveness