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The impact of interfirm relationships on investment: Evidence from the Polish dairy sector

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  • Dries, Liesbeth
  • Swinnen, Johan F.M.

Abstract

Financial constraints and credit market imperfections are a major constraint on investment, growth and poverty reduction in transition and developing countries. This paper analyses the impact on investments of financial assistance programs as part of interfirm relationships. Our empirical evidence is based on a two-stage survey methodology. Qualitative evidence on dairy companies' assistance programs was gathered in the first stage through in-depth interviews at the level of the dairy companies. Quantitative data on 290 milk producing rural households in Poland was collected through a random survey in the second stage. The empirical analysis shows that dairy companies have played an important role in financial assistance, in particular for dairy-specific investments. In addition, they had an important indirect impact on farm activities and investments through feed supply and loan guarantee programs.

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Bibliographic Info

Article provided by Elsevier in its journal Food Policy.

Volume (Year): 35 (2010)
Issue (Month): 2 (April)
Pages: 121-129

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Handle: RePEc:eee:jfpoli:v:35:y:2010:i:2:p:121-129

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Web page: http://www.elsevier.com/locate/foodpol

Related research

Keywords: Central Eastern Europe Poland Dairy sector Vertical coordination Investment;

References

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Cited by:
  1. Shanoyan, Aleksan & Brent Ross, R. & Gow, Hamish R. & Christopher Peterson, H., 2014. "Long-term sustainability of third-party facilitated market linkages: Evidence from the USDA marketing assistance program in the Armenian dairy industry," Food Policy, Elsevier, vol. 46(C), pages 157-164.

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