The investment behaviour of dairy farms in transition economies

Baltic Journal of Economics

卷:21

Ants Hannes Viira¹  József Fogarasi²  Imre Fertő³  Štefan Bojnec⁴ 

[1] Institute of Economics and Social Sciences, Estonian University of Life Sciences;

[2] Keleti Károly Faculty of Business and Management, Óbuda University;

[3] Lorand Eotvos Research Network;

[4] University of Primorska;

关键词: dairy farm investment behaviour;    soft budget constraint;    investment subsidy;    euler equation;    baltic and central europe;   

DOI  :  10.1080/1406099X.2021.1920754

来源: DOAJ

【 摘 要 】

This article investigates dairy farm investment behaviour and the presence of soft budget constraints in the dairy farms of Baltic and Central European transition countries – Estonia, Hungary and Slovenia – using individual dairy farm accountancy panel data for the years 2007–2015. The empirical results confirm that gross dairy farm investment is positively associated with gross dairy farm investment for the previous year for financially unconstrained dairy farms, and negatively for financially constrained dairy farms. It is also positively associated with public investment subsidies, and, except for Slovenia, with growth in real sales for financially unconstrained dairy farms. Mixed results are found for gross dairy farm investment squared and cash flow variables. A particularly significant negative cash flow regression coefficient implies significant soft budget constraints for financially unconstrained Estonian and Slovenian dairy farms, while insignificant cash flow regression coefficients imply weak soft budget constraints for financially unconstrained Hungarian dairy farms.

【 授权许可】

Unknown