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The Role of Banks in Financing the Slovak Agricultural Sector

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  • Novotná, Adriana
  • Kočišová, Kristína

Abstract

A well-developed financial system plays an important role in financing individual sectors in the country. In this paper, we analyse credit development in the agricultural sector in the Slovak Republic from various perspectives. We examine the relationship between the agricultural sector's characteristics and the volume of funding at the regional level. The paper's methodology is based on a k-means algorithm for clustering the Slovak regions with four criteria. Then we examine the relationship between financial development and agricultural growth by employing the Cobb-Douglas production function. This study uses annual data covering the period from 2008 to 2019. The results reveal that financial development has a significant and positive effect on agricultural production and agricultural growth.

Suggested Citation

  • Novotná, Adriana & Kočišová, Kristína, 2022. "The Role of Banks in Financing the Slovak Agricultural Sector," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 14(1), March.
    • Handle: RePEc:ags:aolpei:320341
    DOI: 10.22004/ag.econ.320341
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    References listed on IDEAS

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    1. Jarka, Sławomir & Trajer, Marzena, 2018. "Support for the Beekeeping Sector in Poland and the European Union," Problems of World Agriculture / Problemy Rolnictwa Światowego, Warsaw University of Life Sciences, vol. 18(33, Part ), December.
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