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Contracts, payment delays and firm growth: Evidence from Bulgarian agriculture

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  • Swinnen, Johan F.M.
  • Van Herck, Kristine

Abstract

The transition of a centrally planned to a more market economy provides a natural Experiment on the role of institutions and exchange in economic growth. This paper uses a unique dataset based on a survey of 305 dairy producing and supplying households in Bulgaria to analyze the impact of late payments for delivered products and farm assistance programs. The results of the dynamic panel analysis indicate that late payments have a negative influence on farm growth, while contracting with interlinked farm assistance programs, had a positive effect on farm growth.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 114th Seminar, April 15-16, 2010, Berlin, Germany with number 61079.

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Date of creation: Apr 2010
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Handle: RePEc:ags:eaa114:61079

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Keywords: Agricultural and Food Policy; Farm Management; Land Economics/Use;

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  1. Johannes Van Biesebroeck, 2003. "Exporting Raises Productivity in Sub-Saharan African Manufacturing Plants," NBER Working Papers 10020, National Bureau of Economic Research, Inc.
  2. de Brauw, Alan & Rozelle, Scott, 2008. "Migration and household investment in rural China," China Economic Review, Elsevier, vol. 19(2), pages 320-335, June.
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