The Scale of Investment Activity of Commercial Farms in Metropolitan Areas

Jarosław Mikołajczyk, Tomasz Wojewodzic and Wojciech Sroka

Roczniki (Annals), 2019, vol. 2019, issue 3

Abstract: The aim of the research was to identify the scale of investment activity in commercial farms located within different distances of large urban centres. The research covered six voivodships: Lower Silesia, the Lubelskie Voivodship, Lesser Poland, Masovia, Pomerania and Greater Poland. The source of data used in the analyses was the database of the Polish FADN system. Out of the 3,508 farms participating in the system, over an uninterrupted period between 2004 and 2016, entities operating within the study area were selected and classified into three groups: the inner zone of the metropolitan area, the outer zone of the metropolitan area and others (outside metropolitan areas). Out of the population of 1,668 commercial farms that were selected, 46 operated in the inner zone of metropolitan areas, while 143 – in the outer zone. The averaged values for the distinguished groups were subjected to a comparative analysis. The research showed that farms in metropolitan areas have more factors of production (especially land) and demonstrate faster growth compared to farms located outside the zones of a city’s economic impact. They also spend higher amounts on investment and show a higher investment rate. The scale of investment activity of farms located in metropolitan zones gives such entities a real chance of gaining a competitive advantage (both in resources and production) over farms located outside metropolitan areas.

Keywords: Agribusiness (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:ags:paaero:302786

DOI: 10.22004/ag.econ.302786

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