Financial constraints in economic transition: Empirical evidence from Ukrainian large farms
Nataliya Zinych,
Martin Odening and
Silke Huettel
Authors registered in the RePEc Author Service: Silke Hüttel
No 7834, 104th Seminar, September 5-8, 2007, Budapest, Hungary from European Association of Agricultural Economists
Abstract:
This paper addresses the question of financial constraints in Ukrainian agriculture in transition. The main objective is to reveal the evidence of the both phenomena, soft budget constraints and credit rationing, investigating investment behaviour of large farms in Ukraine. Our empirical analysis is based on unbalanced panel data containing 529 agricultural enterprises from three Ukrainian regions between 2001 and 2005. Estimates of the Euler investment equation for several sub-samples reveal a dissimilar level of financial constraints. We confirm the presence of the soft financial environment (soft budget constraints) for the Ukrainian large farms being in an unconstrained financial regime. The farms belong to this regime if they receive credits after being unprofitable in two consecutive years. The other farms defined a priori as being in an constrained financial regime face evidence of credit rationing. With regard to the empirical results, we derive macroeconomic implications of financial constraints in the agriculture of Ukraine.
Keywords: Agricultural; Finance (search for similar items in EconPapers)
Pages: 14
Date: 2007
References: View complete reference list from CitEc
Citations:
Downloads: (external link)
https://ageconsearch.umn.edu/record/7834/files/sp07zi01.pdf (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:ags:eaa104:7834
DOI: 10.22004/ag.econ.7834
Access Statistics for this paper
More papers in 104th Seminar, September 5-8, 2007, Budapest, Hungary from European Association of Agricultural Economists Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().