EconPapers    
Economics at your fingertips  
 

Determinants of Economic Growth in Organic Farming: The Case of Bavaria and Baden-Wuerttemberg

Thelma Brenes Muñoz, Sebastian Lakner and Bernhard Brümmer

No 114270, 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland from European Association of Agricultural Economists

Abstract: The organic sector in Germany has experienced a substantial growth since the beginning of the 1990s until today. During this process of expansion, most organic farms have grown in terms of factor endowment, while others have disappeared or reconverted to conventional agriculture. This paper investigates the potential determinants of farms growth in the organic sector. This paper models potential factors that might have an impact on the economic growth of 332 organic farms in Bavaria and Baden-Wuerttemberg. The econometric model was developed based on ‘Gibrat’s Law’, using a fixed effect method (FE). The results suggest that direct marketing and livestock intensity significantly influence farm growth. In addition, less efficient farms grew faster than more efficient ones. This outcome can be explained by the economic pressure on inefficient firms for adaptation during the growth and survival process.

Keywords: Farm; Management (search for similar items in EconPapers)
Pages: 13
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://ageconsearch.umn.edu/record/114270/files/Brenes_Thelma_417.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:eaae11:114270

DOI: 10.22004/ag.econ.114270

Access Statistics for this paper

More papers in 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland from European Association of Agricultural Economists Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().

 
Page updated 2020-04-03
Handle: RePEc:ags:eaae11:114270