Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/108264
Authors: 
Fertő, Imre
Bakucs, Zoltán
Bojnec, Štefan
Latruffe, Laure
Year of Publication: 
2012
Series/Report no.: 
IEHAS Discussion Papers MT-DP - 2012/13
Abstract: 
The article investigates the investment and financial constraints for French, Hungarian and Slovenian farms using FADN panel data with different econometric estimation approaches. Farm gross investment is positively associated with real sales growth and cash flow implying the absence of soft budget constraint. Gross farm investment is positively associated with investment subsidies. Specific results by country are found depending on farm indebtedness. Investment subsidies can mitigate some capital market imperfections in short-term, while on long-term what is crucial is farm sale ability to successfully compete in the output market gaining sufficient cash flow for farm competitive survival and investment.
Subjects: 
farm investment
soft budget constraint
investment subsidy
panel data analysis
JEL: 
D81
D92
O12
Q12
C23
ISBN: 
978-615-5243-05-9
Document Type: 
Working Paper

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