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Danish Farmers and Investors: An analysis of reasons and motivations for increasing cross-border agricultural activities in Central and Eastern European countries

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Author Info

  • Luljeta Hajderllari

    ()
    (Institute of Food and Resource Economics, University of Copenhagen)

  • Kostas Karantininis

    ()
    (Institute of Food and Resource Economics, University of Copenhagen)

  • Ole Bonnichsen

    ()
    (Institute of Food and Resource Economics, University of Copenhagen)

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    Abstract

    The purpose of this paper is to provide some evidence on the push and pull factors that motivate farmers to expand across their home countries’ borders. The focus is on Danish expansion farmers and investor farmers setting up activities in Central and Eastern European countries like Slovakia, Poland, Romania and Latvia. Data from 44 mail surveys was analysed to explore the push and pull factors that contribute to farmers’ level of activities outside their home country. The responses given in the mail survey are analysed using two analytical methods of frequency analysis and an ordered probit model. The results indicate that the important factors for Danish farmers to extend overseas are price and availability of land, institutional governance, network and image with regard to farming. These findings generally support the literature regarding reasons for farmers to increase their cross-border activities, except that we do not find a significant influence from the availability of cheap labour in the host countries.

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    File URL: http://okonomi.foi.dk/workingpapers/WPpdf/WP2012/WP_2012_10_Danish_farmers_investors.pdf
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    Bibliographic Info

    Paper provided by University of Copenhagen, Department of Food and Resource Economics in its series IFRO Working Paper with number 2012/10.

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    Length: 20 pages
    Date of creation: Jul 2012
    Date of revision:
    Handle: RePEc:foi:wpaper:2012_10

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    Web page: http://www.ifro.ku.dk/
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    Related research

    Keywords: Denmark; Danish farmer; agriculture; cross-border; Central Eastern Europe;

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    References

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    1. Abay Mulatu & Reyer Gerlagh & Dan Rigby & Ada Wossink, 2010. "Environmental Regulation and Industry Location in Europe," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 45(4), pages 459-479, April.
    2. Alfons Weersink & Christin Eveland, 2006. "The Siting of Livestock Facilities and Environmental Regulations," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(1), pages 159-173, 03.
    3. Murat Isik, 2004. "Environmental Regulation and the Spatial Structure of the U.S. Dairy Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(4), pages 949-962.
    4. Richardson, James W. & Herbst, Brian K. & Duncan, Anthony & den Besten, Mark & van Hoven, Peter, 2007. "Location Preference for Risk-Averse Dutch Dairy Farmers Immigrating to the United States," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 39(03), December.
    5. Brian Roe & Elena G. Irwin & Jeff S. Sharp, 2002. "Pigs in Space: Modeling the Spatial Structure of Hog Production in Traditional and Nontraditional Production Regions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(2), pages 259-278.
    6. John H Dunning, 2009. "Location and the multinational enterprise: A neglected factor?," Journal of International Business Studies, Palgrave Macmillan, vol. 40(1), pages 5-19, January.
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    Cited by:
    1. Luljeta Hajderllari, 2012. "Actions with economic elements embedded in the social networks of Danish farmer investors abroad," IFRO Working Paper 2012/13, University of Copenhagen, Department of Food and Resource Economics.

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