IDEAS home Printed from https://ideas.repec.org/a/prg/jnlcbr/v2018y2018i1id194p37-45.html
   My bibliography  Save this article

Investment Subsidies in the Meat Industry and Their Impact on Business Economics

Author

Listed:
  • Zdeňka Náglová

Abstract

This article deals with meat industry subsidies in the Czech Republic. Food processing businesses are entitled to draw funds from the Rural Development Program 2007-2013 (RDP), Axis I, Measure I. 1. 3 Adding value to agricultural and food products. The aim of this paper is to assess whether there were any changes in performance indicators in subsidized meat businesses and to identify their effects on the meat industry. Competitiveness of meat industry is low. Subsidies are among other factors that can help to reach for better competitiveness of this branch. The fixed effect model was used in order to carry out the analysis. According to the results, subsidized meat enterprises did not display any increase in business performance (no increase in labour productivity, value added growth in the supported firm were found) and cannot be considered as a key factor of competitiveness. There was a positive impact on the number of employees and the value of fixed assets in the year the subsidies were drawn. However, the effective use of workers and property did not reflect other performance indicators in the year of drawing.

Suggested Citation

  • Zdeňka Náglová, 2018. "Investment Subsidies in the Meat Industry and Their Impact on Business Economics," Central European Business Review, Prague University of Economics and Business, vol. 2018(1), pages 37-45.
    • Handle: RePEc:prg:jnlcbr:v:2018:y:2018:i:1:id:194:p:37-45
    DOI: 10.18267/j.cebr.194
    as

    Download full text from publisher

    File URL: http://cebr.vse.cz/doi/10.18267/j.cebr.194.html
    Download Restriction: free of charge
    File URL: http://cebr.vse.cz/doi/10.18267/j.cebr.194.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.18267/j.cebr.194?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
    2. Dimitris Skuras & Kostas Tsekouras & Efthalia Dimara & Dimitris Tzelepis, 2006. "The Effects of Regional Capital Subsidies on Productivity Growth: A Case Study of the Greek Food and Beverage Manufacturing Industry," Journal of Regional Science, Wiley Blackwell, vol. 46(2), pages 355-381, May.
    3. Coad, Alex & Rao, Rekha, 2008. "Innovation and firm growth in high-tech sectors: A quantile regression approach," Research Policy, Elsevier, vol. 37(4), pages 633-648, May.
    4. P. A. Geroski, 2005. "Understanding the implications of empirical work on corporate growth rates," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 129-138.
    5. Jarque, Carlos M. & Bera, Anil K., 1980. "Efficient tests for normality, homoscedasticity and serial independence of regression residuals," Economics Letters, Elsevier, vol. 6(3), pages 255-259.
    6. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    7. Colin Wren, 2005. "Regional grants: are they worth it?," Fiscal Studies, Institute for Fiscal Studies, vol. 26(2), pages 245-275, June.
    8. Geroski, Paul A & Machin, Stephen & Walters, Christopher F, 1997. "Corporate Growth and Profitability," Journal of Industrial Economics, Wiley Blackwell, vol. 45(2), pages 171-189, June.
    9. Menrad, K., 2004. "Innovations in the food industry in Germany," Research Policy, Elsevier, vol. 33(6-7), pages 845-878, September.
    10. Mezera, Josef & Spicka, Jindrich, 2013. "Economic Effects of Investment Support of Adding Value to Food Products," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 5(1), pages 1-11, March.
    11. Nicholas Bloom & John Van Reenen, 2002. "Patents, Real Options and Firm Performance," Economic Journal, Royal Economic Society, vol. 112(478), pages 97-116, March.
    12. Paul A. Geroski & Stephen J. Machin & Christopher F. Walters, 1997. "Corporate Growth and Profitability," Journal of Industrial Economics, Wiley Blackwell, vol. 45(2), pages 171-189, June.
    13. Richard Harris & Mary Trainor, 2005. "Capital Subsidies and their Impact on Total Factor Productivity: Firm‐Level Evidence from Northern Ireland," Journal of Regional Science, Wiley Blackwell, vol. 45(1), pages 49-74, February.
    14. Ankarhem, Mattias & Daunfeldt, Sven-Olov & Quoreshi, Shahiduzzaman & Rudholm, Niklas, 2009. "Do Regional Investment Grants Improve Firm Performance? Evidence from Sweden," Ratio Working Papers 137, The Ratio Institute.
    15. Bernini, Cristina & Pellegrini, Guido, 2011. "How are growth and productivity in private firms affected by public subsidy? Evidence from a regional policy," Regional Science and Urban Economics, Elsevier, vol. 41(3), pages 253-265, May.
    16. Cerqua, Augusto & Pellegrini, Guido, 2014. "Do subsidies to private capital boost firms' growth? A multiple regression discontinuity design approach," Journal of Public Economics, Elsevier, vol. 109(C), pages 114-126.
    17. Christopher F Baum, 2001. "Residual diagnostics for cross-section time series regression models," Stata Journal, StataCorp LP, vol. 1(1), pages 101-104, November.
    18. Shahidur R. Khandker & Gayatri B. Koolwal & Hussain A. Samad, . "Handbook on Impact Evaluation : Quantitative Methods and Practices," World Bank Publications, The World Bank, number 2693, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rudinskaya, T. & Náglová, Z., 2018. "Impact of Subsidies on Technical Efficiency of Meat Processing Companies," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 10(1).
    2. Jindrich SPICKA & Zdenka NAGLOVA & Martin GURTLER, 2017. "Effects of the investment support in the Czech meat processing industry," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 63(8), pages 356-369.
    3. Canarella, Giorgio & Miller, Stephen M., 2018. "The determinants of growth in the U.S. information and communication technology (ICT) industry: A firm-level analysis," Economic Modelling, Elsevier, vol. 70(C), pages 259-271.
    4. Farasat A. S. Bokhari & Franco Mariuzzo & Anna Rita Bennato, 2021. "Innovation and growth in the UK pharmaceuticals: the case of product and marketing introductions," Small Business Economics, Springer, vol. 57(1), pages 603-634, June.
    5. Grillitsch, Markus & Schubert, Torben & Srholec, Martin, 2016. "Knowledge diversity and firm growth: Searching for a missing link," Papers in Innovation Studies 2016/13, Lund University, CIRCLE - Centre for Innovation Research.
    6. Coad, Alex & Rao, Rekha, 2008. "Innovation and firm growth in high-tech sectors: A quantile regression approach," Research Policy, Elsevier, vol. 37(4), pages 633-648, May.
    7. Bernini, Cristina & Cerqua, Augusto & Pellegrini, Guido, 2017. "Public subsidies, TFP and efficiency: A tale of complex relationships," Research Policy, Elsevier, vol. 46(4), pages 751-767.
    8. Okada, Yosuke, 2005. "Competition and productivity in Japanese manufacturing industries," Journal of the Japanese and International Economies, Elsevier, vol. 19(4), pages 586-616, December.
    9. Gosk Beata & Nehrebecka Natalia, 2019. "Are subsidies for Polish enterprises effective: empirical results based on panel data," Central European Economic Journal, Sciendo, vol. 6(53), pages 108-131, January.
    10. Marco Corsino, 2008. "Product Innovation and Growth: The Case of Integrated Circuits," LEM Papers Series 2008/02, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    11. Ondřej Dvouletý & Stjepan Srhoj & Smaranda Pantea, 2021. "Public SME grants and firm performance in European Union: A systematic review of empirical evidence," Small Business Economics, Springer, vol. 57(1), pages 243-263, June.
    12. Kang, Martin & Miller, Andrew & Jang, Kyungmyung & Kim, Horim, 2022. "Firm performance and information security technology intellectual property," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    13. Ankarhem, Mattias & Daunfeldt, Sven-Olov & Quoreshi, Shahiduzzaman & Rudholm, Niklas, 2009. "Do Regional Investment Grants Improve Firm Performance? Evidence from Sweden," Ratio Working Papers 137, The Ratio Institute.
    14. Marco Cucculelli, 2018. "Firm age and the probability of product innovation. Do CEO tenure and product tenure matter?," Journal of Evolutionary Economics, Springer, vol. 28(1), pages 153-179, January.
    15. Marco Capasso & Tania Treibich & Bart Verspagen, 2015. "The medium-term effect of R&D on firm growth," Small Business Economics, Springer, vol. 45(1), pages 39-62, June.
    16. Brachert, Matthias & Brautzsch, Hans-Ulrich & Dettmann, Eva & Giebler, Alexander & Schneider, Lutz & Titze, Mirko, 2020. ""Evaluation der Gemeinschaftsaufgabe 'Verbesserung der regionalen Wirtschaftsstruktur' (GRW)" durch einzelbetriebliche Erfolgskontrolle: Endbericht," IWH Online 5/2020, Halle Institute for Economic Research (IWH).
    17. Jan Cadil & Karel Mirosnik & Ludmila Petkovova & Michal Mirvald, 2018. "Public Support of Private R&D–Effects on Economic Sustainability," Sustainability, MDPI, vol. 10(12), pages 1-14, December.
    18. Alex Coad & Werner Hölzl, 2009. "On the Autocorrelation of Growth Rates," Journal of Industry, Competition and Trade, Springer, vol. 9(2), pages 139-166, June.
    19. Santos, Anabela, 2019. "Do selected firms show higher performance? The case of Portugal’s innovation subsidy," Structural Change and Economic Dynamics, Elsevier, vol. 50(C), pages 39-50.
    20. Roberto Gabriele & Enrico Tundis, 2015. "the effect of longitudinal multiple subsidies on firm performance in the presence of neighbour interactions," ERSA conference papers ersa15p1368, European Regional Science Association.

    More about this item

    Keywords

    rural development program; subsidy; meat industry; business economy; fixed effect model;
    All these keywords.

    JEL classification:

    • B23 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Econometrics; Quantitative and Mathematical Studies
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prg:jnlcbr:v:2018:y:2018:i:1:id:194:p:37-45. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.