Assessing the Effect of Monetary Policy on the Competitiveness of Agricultural Enterprises

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60460709%3A41110%2F24%3A100936" target="_blank" >RIV/60460709:41110/24:100936 - isvavai.cz</a>

Result on the web

<a href="https://doi.org/10.36956/rwae.v5i2.1080" target="_blank" >https://doi.org/10.36956/rwae.v5i2.1080</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.36956/rwae.v5i2.1080" target="_blank" >10.36956/rwae.v5i2.1080</a>

Result language

angličtina

Original language name

Assessing the Effect of Monetary Policy on the Competitiveness of Agricultural Enterprises

Original language description

There are many scientific works the effects of monetary policy on the competitiveness of enterprises. However, no research has yet been conducted on agricultural enterprises. Therefore, the aim of this article is to indicate the effects of monetary policy on the competitiveness of agricultural enterprises. Regression analysis is a suitable econometric method to determine the strength of the effects of monetary policy on competitiveness. In our model, a multiple regression method was used, where interest rates, inflation and exchange rate were defined as exogenous (independent) variables, while revenues of agricultural enterprises were defined as an endogenous (dependent) variable. The findings reveal that the monetary policy significantly affects agricultural competitiveness. Specifically, higher interest rates are shown to have a negative impact on the performance of agricultural enterprises. Economic theory states that higher interest rates have a negative impact on competitiveness, and the results of calculations show that interest rates do have a dominant impact on the agricultural enterprise performance. Monetary policymakers, especially the central bank, should focus on keeping interest rates low in order to increase the availability of operating and investment capital. A market environment with low interest rates could stimulate the introduction of innovations, the implementation of new technologies and the development of robotization in agricultural enterprises. Lower financing costs due to low interest rates could boost business activities and economic growth, which could have a positive impact on the competitiveness of agricultural businesses. The conclusions of our research confirm that in the Czech Republic monetary policy remains a key tool for supporting the development of agricultural enterprises and their competitiveness.

Czech name

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Czech description

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Type

J_SC - Article in a specialist periodical, which is included in the SCOPUS database

CEP classification

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OECD FORD branch

50200 - Economics and Business

Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2024

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Research on World Agriculture Economy

ISSN

2737-4777

e-ISSN

2737-4777

Volume of the periodical

5

Issue of the periodical within the volume

2024-06-01

Country of publishing house

SG - SINGAPORE

Number of pages

13

Pages from-to

68-81

UT code for WoS article

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EID of the result in the Scopus database

2-s2.0-85198616887