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Ownership and Investment Behaviour in Transition Countries: A Case Study of Collective and Corporate Farms in the Czech Republic

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  • Curtiss, Jarmila
  • Ratinger, Tomas
  • Medonos, Tomas

Abstract

Cooperative and corporate farms have retained an important role for agricultural production in many transition countries of Central and Eastern Europe. Despite this importance, these farms' ownership structure, and particularly the ownership's effect on their investment activity, which is vital for efficient restructuring and the sector's future development, are still not well understood. This paper explores the ownership-investment relationship using data on Czech farms from 1997 to 2008. We allow for ownership-specific variability in farm investment behaviour analyzed by utilizing an errorcorrection accelerator model. Empirical results suggest significant differences in the level of investment activity, responsiveness to market signals, investment lumpiness, as well as investment sensitivity to financial variables among farms with different ownership characteristics. These differences imply that the internal structure of the Czech cooperative and corporate farms will be developing in the direction of a decreasing number of owners and an increasing ownership concentration.

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  • Curtiss, Jarmila & Ratinger, Tomas & Medonos, Tomas, 2012. "Ownership and Investment Behaviour in Transition Countries: A Case Study of Collective and Corporate Farms in the Czech Republic," Working papers 122841, Factor Markets, Centre for European Policy Studies.
    • Handle: RePEc:ags:famawp:122841
    DOI: 10.22004/ag.econ.122841
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    1. Jan Pokrivčák & Marián Tóth & Pavel Ciaian & Martin Bušík & Andrej Svorenčík, 2020. "Why Cannot Direct Payments Be Capped in Slovakia? A Political Economy Perspective," Prague Economic Papers, Prague University of Economics and Business, vol. 2020(6), pages 625-648.
    2. Bekena, Sisay Menji, 2017. "The Effect of Firm Ownership Structure on Performance: A case study of Eastern Europe and Central Asian Countries," MPRA Paper 82706, University Library of Munich, Germany.
    3. Jan Pokrivčák & Marián Tóth & Pavel Ciaian & Martin Bušík & Andrej Svorenčík, . "Why Cannot Direct Payments Be Capped in Slovakia? A Political Economy Perspective," Prague Economic Papers, Prague University of Economics and Business, vol. 0.
    4. Curtiss, Jarmila & Jelinek, Ladislav, 2012. "Cost Efficiency and Farm Self-selection in Precision Farming: The Case of Czech Wheat Production," 131st Seminar, September 18-19, 2012, Prague, Czech Republic 135784, European Association of Agricultural Economists.

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