Work

Investment and Financial Constraints in European Agriculture: Evidence from France, Hungary and Slovenia

Year: 2011

Type: preprint

Abstract: The article investigates the investment and financial constraints for French, Hungarian and Slovenian farms using FADN panel data with different econometric estimation approaches. Farm gross investment is positively associated with real sales growth and cash flow implying the absence of soft budget constraint. Gross farm investment is positively associated with investment subsidies. Specific results by country are found depending on farm indebtedness. Investment subsidies can mitigate some capital market imperfections in short-term, while on long-term what is crucial is farm sale ability to successfully compete in the output market gaining sufficient cash flow for farm competitive survival and investment.

Source: RePEc: Research Papers in Economics

DOI: 10.22004/ag.econ.114357

Authors: Ferto, Imre, Bakucs, Lajos Zoltan, Bojnec, Stefan, Latruffe, Laure

Institutions: Corvinus University of Budapest, Hungarian Academy of Sciences, University of Primorska, Structures et marchés agricoles, ressources et territoires

Language: English

Topic: Agricultural economics and policies

Subfield: Safety Research

Field: Social Sciences

Domain: Social Sciences

SDGs: Zero hunger, Decent work and economic growth

Open Access status: green

OpenAlex ID: W1536987212

Cites: 28

Cited by: 14

Related to: 10