AGRICULTURAL INNOVATIONS, EXTENSION, FINANCE AND RURAL LOANS IN THE REPUBLIC OF SERBIA: THE CASE OF LOGISTIC REGRESSION

The aim of this article is to examine the impact of the use of agricultural extension, advisory services and agricultural loans on the introduction of agricultural innovations in the Republic of Serbia. Agricultural innovations are incremental changes through which individuals and organizations introduce new or use significantly improved products, services or ways of organizing in order to increase the performance of agriculture. While agricultural extension involves agricultural knowledge, information and skills that are passed on to farmers, their associations and other value chains market actors, agricultural loans are one of the most important financial instruments available to them. In order to investigate the predictive power and influence of these variables, the paper applied the method of binary logistic regression due to the categorical nature of predictors and the dependent variable. Based on the conducted research, the article found that the use of agricultural loans does not have a statistically significant impact on the introduction of agricultural innovations in Serbia, while agricultural extension has. The article concludes that for the further flourishing of agricultural innovations, the development of advisory services, as well as for the development of various fiscal incentives and rural financial instruments, it is necessary to continuously develop the devastated Serbian village and invest more intensively in rural development. This is the only possible way to prevent further waves of rural population emigration to cities, as well as to improve their knowledge, propensity for innovations and livelihoods.