Investment and Financial Constraints in European Agriculture: Evidence from France, Hungary and Slovenia

Imre Fertő, Zoltan Bakucs (bakucs@econ.core.hu), Stefan Bojnec (stefan.bojnec@fm-kp.si) and Laure Latruffe
Additional contact information
Zoltan Bakucs: Institute of Economics Research Centre for Economic and Regional Studies Hungarian Academy of Sciences
Stefan Bojnec: University of Primorska, Faculty of Management, Slovenia

No 1213, CERS-IE WORKING PAPERS from Institute of Economics, Centre for Economic and Regional Studies

Abstract: The article investigates the investment and financial constraints for French, Hungarian and Slovenian farms using FADN panel data with different econometric estimation approaches. Farm gross investment is positively associated with real sales growth and cash flow implying the absence of soft budget constraint. Gross farm investment is positively associated with investment subsidies. Specific results by country are found depending on farm indebtedness. Investment subsidies can mitigate some capital market imperfections in short-term, while on long-term what is crucial is farm sale ability to successfully compete in the output market gaining sufficient cash flow for farm competitive survival and investment.

Keywords: farm investment; soft budget constraint; investment subsidy; panel data analysis (search for similar items in EconPapers)
JEL-codes: C23 D81 D92 O12 Q12 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2012-03
New Economics Papers: this item is included in nep-agr and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://econ.core.hu/file/download/mtdp/MTDP1213.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to econ.core.hu:80 (A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.)

Related works:
Working Paper: Investment and Financial Constraints in European Agriculture: Evidence from France, Hungary and Slovenia (2011)
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:has:discpr:1213

Access Statistics for this paper

More papers in CERS-IE WORKING PAPERS from Institute of Economics, Centre for Economic and Regional Studies Contact information at EDIRC.
Bibliographic data for series maintained by Nora Horvath (horvath.nora@krtk.mta.hu this e-mail address is bad, please contact repec@repec.org).