Enhancing the export of agricultural products of higher processing

Numerous research and basic economic data from recent decades indicate that agricultural production, as well as the export of agricultural products, can be the main pillars of economic growth in the developing countries. The Republic of Serbia is predominantly an importing country, but with great export potential, especially when we talk about agricultural products. From the perspective of production, Serbia has a huge potential for growth. The subject of this research is the analysis of export potential in agricultural products of the Republic of Serbia. Using the method of secondary and panel analysis, we searched for the data that would indicate that the profitability of exporters increases if they export agricultural products obtained by higher levels of processing. The transfer of agricultural products into a higher processing phase not only brings higher returns on capital and assets to the exporter, but also affects the opening of additional jobs in production, improves the trade balance of the state, etc. In accordance with this, the aim of this paper was to develop a model for creating a favorable atmosphere in the Republic of Serbia for agricultural producers to transfer their products to a higher processing stage (as much as this is possible) and then export them to foreign markets.