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Financial Exposure and Productive Performance in French Arable Farms

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  • Stéphane Blancard

    (CERESUR, University of La Reunion)

Abstract

This paper examines the dynamic relationship between financial exposure and productive performance in agriculture. To this end, Granger's concept of causality and VAR representation are used. Indeed, in spite of several studies, the causality and the direction are not clearly defined. However, investigation of this question can provide with valuable information at policy makers to formulate appropriate credit policies. Using a large micro panel of French farmers over 1994-2001, we find that there is a bidirectional causality running from financial constraints and productive performance. Nevertheless, variance decompositions and impulse response analysis suggest a weak relationship existing between these two variables.

Suggested Citation

  • Stéphane Blancard, 2006. "Financial Exposure and Productive Performance in French Arable Farms," Economics Bulletin, AccessEcon, vol. 4(15), pages 1-9.
    • Handle: RePEc:ebl:ecbull:eb-06d20002
    as

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    References listed on IDEAS

    as
    1. Stéphane Blancard & Jean-Philippe Boussemart & Walter Briec & Kristiaan Kerstens, 2006. "Short- and Long-Run Credit Constraints in French Agriculture: A Directional Distance Function Framework Using Expenditure-Constrained Profit Functions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 351-364.
    2. Catherine J. Morrison Paul & Warren E. Johnston & Gerald A. G. Frengley, 2000. "Efficiency in New Zealand Sheep and Beef Farming: The Impacts of Regulatory Reform," The Review of Economics and Statistics, MIT Press, vol. 82(2), pages 325-337, May.
    3. Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-1426, November.
    4. repec:dau:papers:123456789/6159 is not listed on IDEAS
    5. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-438, July.
    6. Rolf Färe & Shawna Grosskopf & Hyunok Lee, 1990. "A Nonparametric Approach to Expenditure-Constrained Profit Maximization," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(3), pages 574-581.
    7. Chavas, Jean-Paul & Aliber, Michael, 1993. "An Analysis Of Economic Efficiency In Agriculture: A Nonparametric Approach," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(1), pages 1-16, July.
    8. Hadley, David & Shankar, Bhavani & Thirtle, Colin G. & Coelli, Tim J., 2001. "Financial Exposure, Technical Change And Farm Efficiency: Evidence From The England And Wales Dairy Sector," 2001 Annual meeting, August 5-8, Chicago, IL 20656, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    actual efficiency;

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations

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