Affiliation:
1. 1 European Commission (DG JRC) Edificio Expo C/Inca Garcilaso 3 41092 Seville Spain
Abstract
Drawing on a unique farm level panel data set with 37,409 observations for period 2004–2005 and employing a matching estimator, this paper analyses how farm access to credit affects farm input allocation and farm efficiency in the CEE transition countries. We find that farms are asymmetrically credit constrained with respect to inputs. Farm use of variable inputs and capital investment increases up to 2.3% and 29%, respectively, per 1000 EUR of additional credit. Our estimates suggest also that farm access to credit increases the total factor productivity up to 1.9% per 1000 EUR of additional credit, indicating that an improved access to credit results in adjusting the relative input intensities on farms. This finding is further supported by a negative effect of better access to credit on labour, suggesting that these two are substitutes. Interestingly, farms are found not to be credit constrained with respect to land.
Subject
Economics and Econometrics
Reference46 articles.
1. Optimization Intertepmoral Investments in Australian Agriculture: An Empirical Investigation;Agbola F.W.;Agricultural Economics Review,2005
2. Investment, Financial Constraints and Soft Budget Constraint in Hungarian Agriculture;Bakucs L.Z.;Economics Letters,2009
3. Does Capital Market Structure Affect Farm Investment? A Comparison Using French and British Farm-level Panel Data;Benjamin C.;American Journal of Agricultural Economics,2002
4. The Effects of Moratoria on Residential Development: Evidence from a Matching Approach;Bento A.;American Journal of Agricultural Economics,2007
Cited by
4 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献