Investments, subsidies and financial constraints in Estonian agriculture
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60460709%3A41110%2F23%3A97764" target="_blank" >RIV/60460709:41110/23:97764 - isvavai.cz</a>
Result on the web
<a href="https://www.emerald.com/insight/content/doi/10.1108/AFR-10-2022-0132/full/html" target="_blank" >https://www.emerald.com/insight/content/doi/10.1108/AFR-10-2022-0132/full/html</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1108/AFR-10-2022-0132" target="_blank" >10.1108/AFR-10-2022-0132</a>
Alternative languages
Result language
angličtina
Original language name
Investments, subsidies and financial constraints in Estonian agriculture
Original language description
PurposeThe purpose of this study is to explore the determinants of investment decisions of Estonian farms after the transition to market economy and accession to the European Union (EU), in the period 2006-2019.Design/methodology/approachThe paper employs Estonian Farm Accountancy Data Network (FADN) individual farm-level data from the period 2006-2019, and standard and augmented accelerator investment models. Generalised methods of moments (GMM) and bias-corrected least-squares dummy variables (LSDVC) regressions were used to estimate parameters of these models.FindingsIn the considered period, farm investments were positively affected by sales growth, investment subsidies and the cash flow. Decomposition of cash flow into volatile, market income related part, and more stable, farm subsidies related part indicated that investments do not depend on market income part of cash flow. Instead, the stable part of the cash flow (farm subsidies) had a significant and positive effect on investments. This suggests that credit rationing could be present in the EU agriculture, and it depends on the farm subsidies not market income of farms.Originality/valueDespite the wealth of literature on the investment behaviour of farmers, this article is the first attempt to decompose farm cash flow into stable (farm subsidies) and volatile (market income) parts to explain the role of subsidies as a part of cash flow in credit rationing.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50202 - Applied Economics, Econometrics
Result continuities
Project
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Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2023
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Agricultural Finance Review
ISSN
0002-1466
e-ISSN
0002-1466
Volume of the periodical
83
Issue of the periodical within the volume
4/5
Country of publishing house
GB - UNITED KINGDOM
Number of pages
20
Pages from-to
597-616
UT code for WoS article
001050476300001
EID of the result in the Scopus database
2-s2.0-85168129260