Investment, and Contract Hold-Ups in Transition: Evidence from Hungary

Hamish R. Gow and Johan Swinnen

No 24853, 2002 International Congress, August 28-31, 2002, Zaragoza, Spain from European Association of Agricultural Economists

Abstract: This paper analyses empirically the effect of "hold-ups" on capital investment in farms using a sample of 318 Hungarian enterprises, surveyed over 1997. A negative relationship arises between capital investment and the incidence of hold-up behaviour. This relationship is affected by farm's wealth and liquidity position, the quality of legal enforcement of contracts, by whether farms have contracted sales to foreign processors, and whether they are established as successors to pre-reform organisations rather than start-up businesses.

Keywords: Agricultural; Finance (search for similar items in EconPapers)
Pages: 16
Date: 2002
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaae02:24853

DOI: 10.22004/ag.econ.24853

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