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Contracts, payment delays and firm growth: Evidence from Bulgarian agriculture

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  • Swinnen, Johan F.M.
  • Van Herck, Kristine

Abstract

The transition of a centrally planned to a more market economy provides a natural Experiment on the role of institutions and exchange in economic growth. This paper uses a unique dataset based on a survey of 305 dairy producing and supplying households in Bulgaria to analyze the impact of late payments for delivered products and farm assistance programs. The results of the dynamic panel analysis indicate that late payments have a negative influence on farm growth, while contracting with interlinked farm assistance programs, had a positive effect on farm growth.

Suggested Citation

  • Swinnen, Johan F.M. & Van Herck, Kristine, 2010. "Contracts, payment delays and firm growth: Evidence from Bulgarian agriculture," 114th Seminar, April 15-16, 2010, Berlin, Germany 61079, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaa114:61079
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    File URL: http://purl.umn.edu/61079
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    References listed on IDEAS

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    1. Van Biesebroeck, Johannes, 2005. "Exporting raises productivity in sub-Saharan African manufacturing firms," Journal of International Economics, Elsevier, vol. 67(2), pages 373-391, December.
    2. de Brauw, Alan & Rozelle, Scott, 2008. "Migration and household investment in rural China," China Economic Review, Elsevier, vol. 19(2), pages 320-335, June.
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    Keywords

    Agricultural and Food Policy; Farm Management; Land Economics/Use;

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