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The impact of interfirm relationships on investment: Evidence from the Polish dairy sector

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  • Dries, Liesbeth
  • Swinnen, Johan F.M.

Abstract

Financial constraints and credit market imperfections are a major constraint on investment, growth and poverty reduction in transition and developing countries. This paper analyses the impact on investments of financial assistance programs as part of interfirm relationships. Our empirical evidence is based on a two-stage survey methodology. Qualitative evidence on dairy companies' assistance programs was gathered in the first stage through in-depth interviews at the level of the dairy companies. Quantitative data on 290 milk producing rural households in Poland was collected through a random survey in the second stage. The empirical analysis shows that dairy companies have played an important role in financial assistance, in particular for dairy-specific investments. In addition, they had an important indirect impact on farm activities and investments through feed supply and loan guarantee programs.

Suggested Citation

  • Dries, Liesbeth & Swinnen, Johan F.M., 2010. "The impact of interfirm relationships on investment: Evidence from the Polish dairy sector," Food Policy, Elsevier, vol. 35(2), pages 121-129, April.
  • Handle: RePEc:eee:jfpoli:v:35:y:2010:i:2:p:121-129
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Olivia Riera & Johan Swinnen, 2016. "Cuba's Agricultural Transition and Food Security in a Global Perspective," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 38(3), pages 413-448.
    2. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 2, pages 13-38 World Scientific Publishing Co. Pte. Ltd..
    3. Marconi, V. & Raggi, M. & Viaggi, D. & Lefebvre, M. & Gomez y Paloma, Sergio, 2015. "The impact of the 2013 Common Agricultural Policy reform on farmer's investment decisions: an ex-ante evaluation," 2015 Conference, August 9-14, 2015, Milan, Italy 212225, International Association of Agricultural Economists.
    4. Swinnen Johan & Vandeplas Anneleen, 2012. "Rich Consumers and Poor Producers: Quality and Rent Distribution in Global Value Chains," Journal of Globalization and Development, De Gruyter, vol. 2(2), pages 1-30, January.
    5. Jin, Shaosheng & Guo, Haiyue & Delgado, Michael S. & Wang, H. Holly, 2017. "Benefit or damage? The productivity effects of FDI in the Chinese food industry," Food Policy, Elsevier, vol. 68(C), pages 1-9.
    6. Johan Swinnen, & Kristine Van Herck & Liesbet Vranken, 2014. "The Diversity of Land Institutions in Europe," LICOS Discussion Papers 35514, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    7. Bobojonov, Ihtiyor & Teuber, Ramona & Oshakbayev, Dauren & Glauben, Thomas, 2015. "Agrifood sector transformation and its implications on development of small farmers in Kazakhstan," 2015 Conference, August 9-14, 2015, Milan, Italy 211357, International Association of Agricultural Economists.
    8. Shanoyan, Aleksan & Brent Ross, R. & Gow, Hamish R. & Christopher Peterson, H., 2014. "Long-term sustainability of third-party facilitated market linkages: Evidence from the USDA marketing assistance program in the Armenian dairy industry," Food Policy, Elsevier, vol. 46(C), pages 157-164.
    9. Jan Fałkowski & Agata Malak-Rawlikowska & Dominika Milczarek-Andrzejewska, 2013. "Determinants and Consequences of Participating in a Restructured Supply Chain: the Experience of the Dairy Sector in Poland," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 34.

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