Financial constraints and nonlinearity of farm size growth

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60460709%3A41110%2F24%3A101262" target="_blank" >RIV/60460709:41110/24:101262 - isvavai.cz</a>

Result on the web

<a href="https://www.emerald.com/insight/content/doi/10.1108/jamr-02-2023-0053/full/html" target="_blank" >https://www.emerald.com/insight/content/doi/10.1108/jamr-02-2023-0053/full/html</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1108/JAMR-02-2023-0053" target="_blank" >10.1108/JAMR-02-2023-0053</a>

Result language

angličtina

Original language name

Financial constraints and nonlinearity of farm size growth

Original language description

PurposeThis article aims to investigate the financial constraints and nonlinearity of farm size growth.Design/methodology/approachFarm size growth is measured with land, labor and output using data from the Farm Accountancy Data Network (FADN) for Hungary and Slovenia. A dynamic panel model is applied to assess financial constraints and nonlinearity of farm size growth.FindingsResults show that, except for land in Slovenia and output in Hungary, liquidity constraints are less important for farm size growth than endogenous factors based on farm size growth expectations and steady farm size restructuring. Smaller farms are growing faster than larger ones. The hypothesis that a higher level of subsidies would increase farm size is not supported for Hungary. When farms reach a certain size, the land area of the largest farms increases. Farm debts in Hungary are linked with land growth and in Slovenia with output growth.Research limitations/implicationsFurther research on the impact of liquidity constraints and subsidies can be conducted at a disaggregate farm-type level to examine whether there is variability in the underlying interlinkages at the farm-type specialization level.Practical implicationsThe implication that farm size growth is dependent on initial size and that smaller farms are growing faster than bigger ones indicates that it is not necessary to favor the fastest growing smaller farms thus supports the application of a non-discriminatory farm size policy for observing farm size structural changes.Originality/valueThe dynamic panel econometric model that incorporates cash flow as a measure of financial constraints provides insight into farm size growth in cross-country comparison in relation to potential farm liquidity constraints, farm debt and the nonlinearity of farm size, which information is of relevance to policy makers and practitioners.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

—

OECD FORD branch

50202 - Applied Economics, Econometrics

Project

—

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

JOURNAL OF ADVANCES IN MANAGEMENT RESEARCH

ISSN

0972-7981

e-ISSN

0972-7981

Volume of the periodical

21

Issue of the periodical within the volume

1

Country of publishing house

GB - UNITED KINGDOM

Number of pages

20

Pages from-to

153-172

UT code for WoS article

000998619400001

EID of the result in the Scopus database

2-s2.0-85161381870