Agricultural soft budget constraints in new European Union member states

2019 ◽  
Vol 16 (1) ◽  
pp. 49-64
Author(s):  
Imre Fertő ◽  
Štefan Bojnec ◽  
József Fogarasi ◽  
Ants Hannes Viira
Keyword(s):  
Cash Flow ◽  
Public Investment ◽  
Flow Coefficient ◽  
Budget Constraints ◽  
Soft Budget Constraints ◽  
Farm Investment ◽  
Eastern European Countries ◽  
Individual Farm ◽  
Flow Variables ◽  
Investment Behaviour

AbstractThis article investigates farm investment behaviour and the presence of soft budget constraints in the agricultural sectors of three Central and Eastern European countries – Estonia, Hungary and Slovenia – using individual farm accountancy panel data for the 2007–2015 period. Gross farm investment is positively associated with gross farm investment for the previous year, growth in real sales and public investment subsidies. Mixed results for debt square and cash flow variables imply that the different investment behaviour of farms pertains to different structures of investment sources among the countries under analysis. A particularly significant negative cash flow coefficient implies strong soft budget constraints for Estonian farms, while insignificant cash flow coefficients imply weak soft budget constraints for Hungarian and Slovenian farms.

scholarly journals Short communication: East-West European farm investment behaviour - The role of financial constraints and public support

2017 ◽  
Vol 15 (1) ◽  
pp. e01SC01 ◽  
Author(s):  
Imre Fertő ◽  
Zoltán Bakucs ◽  
Štefan Bojnec ◽  
Laure Latruffe
Keyword(s):  
Capital Market ◽  
Public Investment ◽  
Public Support ◽  
Market Imperfections ◽  
Capital Market Imperfections ◽  
Farm Investment ◽  
Long Run ◽  
Output Market ◽  
Individual Farm ◽  
Investment Behaviour

The article investigated farm investment behaviour among East (Hungarian and Slovenian) and West (French) European Union farms using individual farm accountancy panel data for the 2003-2008 period. Despite differences in farm structures, except for the presence of capital market imperfections evidenced in the East, farms’ investment behaviour was not substantially different. Farm gross investment was positively associated with real sales’ growth. In addition, it was positively associated with public investment subsidies which can mitigate capital market imperfections in the short-term. On the long run, the farm’s ability to successfully compete in the output market by selling produce and securing a sufficient cash flow for investment is crucial.

scholarly journals Investments of Czech farms located in less favoured areas after EU accession

2020 ◽  
Vol 66 (No. 2) ◽  
pp. 55-64
Author(s):  
Radek Zdeněk ◽  
Jana Lososová
Keyword(s):  
Agricultural Land ◽  
Budget Constraints ◽  
Structural Development ◽  
Eu Accession ◽  
High Importance ◽  
Soft Budget Constraints ◽  
Relative Age ◽  
Fixed Assets ◽  
Investment Behaviour

This paper investigates the development and structure of the fixed assets of Czech farms and their investment behaviour. We use data from a long-term (2003–2016) survey of farms and categorise farms into three groups according to their share of agricultural land in less favoured areas. The development of tangible fixed assets and their structural development points to the importance of investments to agricultural holdings. Above all, there is an extensive trend of investing in the land, but purchases of land are likely to affect the growth of the relative age of tangible fixed assets, especially the obsolescence of buildings that are not sufficiently modernised by farms. Results of the accelerated model indicate that there is an absence of soft budget constraints but a presence of capital imperfections and high importance of both operating and investment subsidies when deciding on investments in fixed assets.

ANALISIS PENGARUH ERUBAHAN TINGKAT SUKU BUNGA SBI DAN PERUBAHAN KURS US$ TERHADAP HARGA PASAR SAHAM SEMEN GRESIK, TBK PERIODE JANUARI 2002 – DESEMBER 2006

2017 ◽  
Vol 4 (1) ◽  
Author(s):  
Oktafalia Marisa ◽  
Maya Syafriana
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Cash Flow ◽  
Stock Price ◽  
External Factors ◽  
Investment Climate ◽  
Internal Factors ◽  
Price Fluctuation ◽  
Two Factors ◽  
Investment Behaviour

<p class="Pendahuluan">Investment climate has begun to rise since a few years ago. Stock price fluctuations keep stable and move to the positive position. Stock price fluctuation affected by two factors, internal factors and external factors. Internal factors consist of company’s cash flow, dividend and investment behaviour. External factors consist of monetary policy, exchange rate, interest volatility, globalization, companies’ competition, and technology. This research, try to find out the effects of SBI rate and exchanged rate (USD/Rp) to PT. Semen Gresik’s stock price.</p><p class="Pendahuluan"> </p><p class="Pendahuluan">Keywords : Investment, stock price, SBI’s rate, and Exchanged rate.</p>

scholarly journals Size, spillovers and soft budget constraints

2012 ◽  
Vol 20 (2) ◽  
pp. 338-356 ◽  
Author(s):  
Ernesto Crivelli ◽  
Klaas Staal
Keyword(s):  
Budget Constraints ◽  
Soft Budget Constraints

scholarly journals Determinants of firm-level technical efficiency: evidence using stochastic frontier approach

2008 ◽  
Vol 5 (3) ◽  
pp. 225-239 ◽  
Author(s):  
Evis Sinani ◽  
Derek C. Jones ◽  
Niels Mygind
Keyword(s):  
Technical Efficiency ◽  
Firm Size ◽  
Stochastic Frontier ◽  
Returns To Scale ◽  
Budget Constraints ◽  
Stochastic Frontiers ◽  
Firm Level ◽  
Soft Budget Constraints ◽  
Labor Quality ◽  
Enhance Efficiency

By estimating stochastic frontiers we investigate the determinants and dynamics of firm efficiency. We use a representative sample of Estonian firms for the period 1993-1999 – and are able to address problems that plague much previous work, such as the endogeneity of ownership. Our main findings are that: (i) foreign ownership increases technical efficiency; (ii) firm size and higher labor quality enhance efficiency, while soft budget constraints adversely affect efficiency; (iv) Estonian firms operate under constants returns to scale; (v) the percentage of firms operating at high levels of efficiency increases over time. As such our findings provide support for hypotheses that a firm’s ownership structure and its characteristics such as firm size, labor quality, soft budget constraints and time of privatization are important for its technical efficiency.

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