IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i24p13741-d701178.html
   My bibliography  Save this article

Determinants of Fixed Asset Investment in the Polish Farms

Author

Listed:
  • Elżbieta Jadwiga Szymańska

    (Department of Logistics, Institute of Economics and Finance, Warsaw University of Life Sciences—SGGW, 02-787 Warsaw, Poland)

  • Mariusz Dziwulski

    (Department of Economic Analysis, PKO BP SA, 02-515 Warsaw, Poland)

  • Michał Kruszyński

    (Department of Management, Faculty of Logistics and Transport, The International University of Logistics and Transport in Wroclaw, 51-168 Wroclaw, Poland)

Abstract

The aim of this study was to determine the factors affecting the level of investment activity of agricultural producers in Poland. Detailed studies included 4309 farms that kept accounts within the Farm Accountancy Data Network (FADN) accounting system in the years 2010–2018. The study uses Person’s linear correlation method, the multiple correlation method, and regression analysis. For the regression analysis, both static and dynamic models were applied. The level of expenditure on agricultural investment varied in the surveyed households and showed an upward trend during the years 2010–2018. Studies have shown that the investment activity of Polish farms largely depends on the possibility of raising funds from European Union programs dedicated, inter alia, to the development of agricultural holdings. The regression analysis demonstrated that the principal factors affecting the level of agricultural investment include: the amount of long-term liabilities, the family income of the farm, and the amount of investment subsidies. Preferential loans are an important parameter in a dynamic investment model. This study suggests that agricultural policy factors should be taken into account to ensure the appropriate development of Polish farms.

Suggested Citation

  • Elżbieta Jadwiga Szymańska & Mariusz Dziwulski & Michał Kruszyński, 2021. "Determinants of Fixed Asset Investment in the Polish Farms," Sustainability, MDPI, vol. 13(24), pages 1-13, December.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:24:p:13741-:d:701178
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/24/13741/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/24/13741/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Greenwald, Bruce & Stiglitz, Joseph E & Weiss, Andrew, 1984. "Informational Imperfections in the Capital Market and Macroeconomic Fluctuations," American Economic Review, American Economic Association, vol. 74(2), pages 194-199, May.
    2. Geert Thijssen, 1996. "Farmers' Investment Behavior: An Empirical Assessment of Two Specifications of Expectations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 166-174.
    3. Kataria, Karin & Curtiss, Jarmila & Balmann, Alfons, 2012. "Drivers of Agricultural Physical Capital Development: Theoretical Framework and Hypotheses," Factor Markets Working Papers 122, Centre for European Policy Studies.
    4. LaDue, Eddy L. & Miller, Lynn H. & Kwiatkowski, Joseph H., 1988. "Factors Influencing Farm Investment Behavior," 1988 Regional Committee NC-161, October 4-5, 1988, McLean, Virginia 127330, Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition.
    5. John S. Strong & John R. Meyer, 1990. "Sustaining Investment, Discretionary Investment, and Valuation: A Residual Funds Study of the Paper Industry," NBER Chapters, in: Asymmetric Information, Corporate Finance, and Investment, pages 127-148, National Bureau of Economic Research, Inc.
    6. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bożena Kusz & Dariusz Kusz & Iwona Bąk & Maciej Oesterreich & Ludwik Wicki & Grzegorz Zimon, 2022. "Selected Economic Determinants of Labor Profitability in Family Farms in Poland in Relation to Economic Size," Sustainability, MDPI, vol. 14(21), pages 1-25, October.
    2. Luigi Biagini & Simone Severini, 2022. "How Does the Farmer Strike a Balance between Income and Risk across Inputs? An Application in Italian Field Crop Farms," Sustainability, MDPI, vol. 14(23), pages 1-15, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Abdallah, Abed AL-Nasser & Abdallah, Wissam, 2019. "Does cross-listing in the US improve investment efficiency? Evidence from UK firms," The Quarterly Review of Economics and Finance, Elsevier, vol. 72(C), pages 215-231.
    2. Hartarska, Valentina M. & Nadolnyak, Denis A., 2012. "Financing Constraints and Access to Credit in Post Crisis Environment: Evidence from New Farmers in Alabama," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124882, Agricultural and Applied Economics Association.
    3. Ana Venâncio & João Jorge, 2022. "The role of accelerator programmes on the capital structure of start-ups," Small Business Economics, Springer, vol. 59(3), pages 1143-1167, October.
    4. Valérie Revest & Alessandro Sapio, 2012. "Financing technology-based small firms in Europe: what do we know?," Small Business Economics, Springer, vol. 39(1), pages 179-205, July.
    5. R. Glenn Hubbard, 1990. "Introduction to "Asymmetric Information, Corporate Finance, and Investment"," NBER Chapters, in: Asymmetric Information, Corporate Finance, and Investment, pages 1-14, National Bureau of Economic Research, Inc.
    6. Badar Nadeem Ashraf, 2021. "Is Economic Uncertainty a Risk Factor in Bank Loan Pricing Decisions? International Evidence," Risks, MDPI, vol. 9(5), pages 1-17, April.
    7. Stiglitz, Joseph E., 2002. "New perspectives on public finance: recent achievements and future challenges," Journal of Public Economics, Elsevier, vol. 86(3), pages 341-360, December.
    8. Greenwald, Bruce C. & Stiglitz, Joseph E., 1987. "Imperfect information, credit markets and unemployment," European Economic Review, Elsevier, vol. 31(1-2), pages 444-456.
    9. Steven M. Fazzari & R. Glenn Hubbard & Bruce C. Petersen, 1988. "Financing Constraints and Corporate Investment," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 19(1), pages 141-206.
    10. Roberto Burguet & R. McAfee, 2009. "License prices for financially constrained firms," Journal of Regulatory Economics, Springer, vol. 36(2), pages 178-198, October.
    11. Agosin, Manuel R. & Crespi, Gustavo & Letelier, Leonardo S., 1997. "Análisis sobre el aumento del ahorro en Chile," IDB Publications (Working Papers) 6101, Inter-American Development Bank.
    12. Mark Gertler, 1988. "Financial structure and aggregate economic activity: an overview," Proceedings, Federal Reserve Bank of Cleveland, pages 559-596.
    13. Tomat, Gian Maria, 2008. "Modeling the Effects of Financial Constraints on Firm's Investment," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 2, pages 1-26.
    14. Frederic S. Mishkin, 1991. "Asymmetric Information and Financial Crises: A Historical Perspective," NBER Chapters, in: Financial Markets and Financial Crises, pages 69-108, National Bureau of Economic Research, Inc.
    15. Hanna Hottenrott & Bettina Peters, 2012. "Innovative Capability and Financing Constraints for Innovation: More Money, More Innovation?," The Review of Economics and Statistics, MIT Press, vol. 94(4), pages 1126-1142, November.
    16. Aadland, David, 2005. "Detrending time-aggregated data," Economics Letters, Elsevier, vol. 89(3), pages 287-293, December.
    17. Li, Xiafei & Luo, Di, 2019. "Financial constraints, stock liquidity, and stock returns," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 63(C).
    18. Asif Islam & Silvia Muzi & Jorge Luis Rodriguez Meza, 2018. "Does mobile money use increase firms’ investment? Evidence from Enterprise Surveys in Kenya, Uganda, and Tanzania," Small Business Economics, Springer, vol. 51(3), pages 687-708, October.
    19. Di Guilmi, C. & Gallegati, M. & Landini, S., 2008. "Economic dynamics with financial fragility and mean-field interaction: A model," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 387(15), pages 3852-3861.
    20. Parker, Simon C, 2002. "Do Banks Ration Credit to New Enterprises? And Should Governments Intervene? President's Lecture Delivered at the Annual General Meeting of the Scottish Economic Society 4-5 September 2001," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(2), pages 162-195, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:24:p:13741-:d:701178. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.