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Farm Productivity Depending on Economic Size

Author

Listed:
  • Miroslaw Wasilewski

    () (Warsaw University of Life Sciences)

  • Tomasz Felczak

    () (Warsaw University of Life Sciences)

Abstract

In the study, effectiveness of functioning of individual farms varying in terms of economic strength was measured using the residual income formula. The values used have been obtained from the European data collection system - Farm Accountancy Data Network for year 2011. The study encompassed farms in Poland, divided according to economic size. On the basis of the research conducted, it was found that the share of current assets and liabilities increased along with the economic strength of farms, which reflects the increasing production scale. As the standard value of production of a farm increased, so did the share of current assets. Increase in economic strength also resulted in an increase in the level of residual income, which indicates higher effectiveness of a farm. All of the groups of farms examined recorded a positive result of residual risk, which proves that agricultural activity of these farms is profitable.

Suggested Citation

  • Miroslaw Wasilewski & Tomasz Felczak, 2013. "Farm Productivity Depending on Economic Size," Accounting and Finance, Institute of Accounting and Finance, issue 3, pages 113-117, September.
  • Handle: RePEc:iaf:journl:y:2013:i:3:p:113-117
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    File URL: http://www.afj.org.ua/en/article/95/
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    More about this item

    Keywords

    farm; economic strength; effectiveness; residual income;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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