Access to Credit, Factor Allocation and Farm Productivity: Evidence From the CEE Transition Economies

Pavel Ciaian, Jan Falkowski and d'Artis Kancs

No 61347, 114th Seminar, April 15-16, 2010, Berlin, Germany from European Association of Agricultural Economists

Abstract: This paper analyses how farm access to credit affects farm input allocation and farm efficiency in the CEE countries. Drawing on a unique farm level panel data with 37,409 observations and employing a matching estimator we are able to control for the key source of endogeneity – unoberserved heterogeneity. We find that farms are credit constrained both in the short-run as well as in the long-run, but that credit constraint is asymmetric between inputs. Our estimates suggest that farm access to credit increases TFP up to 1.9% per 1000 EUR of additional credit. The use of variable inputs and capital investment increases up to 2.3% and 29%, respectively, per 1000 EUR of additional credit. Due to credit-financed investment in labour-saving farm equipment, labour use reduces for low level of credit Farms are found not to be credit constrained with respect to land.

Keywords: Agricultural and Food Policy; Farm Management; Land Economics/Use (search for similar items in EconPapers)
Pages: 31
Date: 2010-04
New Economics Papers: this item is included in nep-agr, nep-eff and nep-tra
References: View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://ageconsearch.umn.edu/record/61347/files/Ci ... %20Kancs%2061347.pdf (application/pdf)

Related works:
Working Paper: Access to Credit, Factor Allocation and Farm Productivity: Evidence From the CEE Transition Economies (2009)
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:eaa114:61347

DOI: 10.22004/ag.econ.61347

Access Statistics for this paper

More papers in 114th Seminar, April 15-16, 2010, Berlin, Germany from European Association of Agricultural Economists Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().