East-West European farm investment behaviour - The role of financial constraints and public support

Imre Fertő ^[1] ; Zoltán Bakucs ^[1] ; Štefan Bojnec ^[2] ; Laure Latruffe ^[3]
1. [1] Hungarian Academy of Sciences
  
  Hungarian Academy of Sciences
  
  Hungría
2. [2] University of Primorska
  
  University of Primorska
  
  Eslovenia
3. [3] Institut National de la Recherche Agronomique
  
  Institut National de la Recherche Agronomique
  
  París, Francia
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Localización: Spanish journal of agricultural research, ISSN-e 2171-9292, ISSN 1695-971X, Vol. 15, Nº. 1, 2017
Idioma: inglés
Enlaces
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Resumen
- The article investigated farm investment behaviour among East (Hungarian and Slovenian) and West (French) European Union farms using individual farm accountancy panel data for the 2003-2008 period. Despite differences in farm structures, except for the presence of capital market imperfections evidenced in the East, farms’ investment behaviour was not substantially different. Farm gross investment was positively associated with real sales’ growth. In addition, it was positively associated with public investment subsidies which can mitigate capital market imperfections in the short-term. On the long run, the farm’s ability to successfully compete in the output market by selling produce and securing a sufficient cash flow for investment is crucial.