IDEAS home Printed from https://ideas.repec.org/a/ags/gjagec/98251.html
   My bibliography  Save this article

Economic Situation and Development Perspectives of Farms in Poland - An Analysis Based on Survey Data from Selected Polish Voivodships and a Comparison with German Farms

Author

Listed:
  • Petrick, Martin
  • Spychalski, Grzegorz
  • Switlyk, Michal
  • Tyran, Ewa

Abstract

The aim of this paper is to present an analysis of farm-level data collected in a survey of 464 Polish farms in 2000. Performance indicators of farms in three Polish voivodships are compared with farm accountancy data from two German Länder. The results show that Polish farms are much less profitable than their German counterparts. The gap in income levels is much higher between persons employed in the agricultural sector than between average working persons in the two countries. Living standards of the Polish farm population in the north-west exceed those in the south-east of the country. The analysis suggests that the lower profitability of farms has two major reasons. First, farms in the German regions receive much higher levels of subsidies. Second, there are pronounced structural deficiencies due to a quite unfavourable workforce-land ratio on Polish farms. These farms are less productive and less specialized than the German farms analysed. There is a generally conservative attitude among Polish farmers that prefers the continuation of farming over leaving the sector. Nevertheless, income from agriculture is to a substantial extent complemented by off-farm employment in the southern regions. Our overall conclusion is that Polish farms currently are in the midst of a regional, economic, and social differentiation process fuelled by severe imbalances in terms of income levels between rural and urban population groups. This process is however seriously slowed down or even halted by a number of effective institutional barriers, particularly with regard to rural labour markets. These barriers should be properly addressed by a formulation of future policies in order to avoid further social frictions in the course of the Polish EU accession.

Suggested Citation

  • Petrick, Martin & Spychalski, Grzegorz & Switlyk, Michal & Tyran, Ewa, 2002. "Economic Situation and Development Perspectives of Farms in Poland - An Analysis Based on Survey Data from Selected Polish Voivodships and a Comparison with German Farms," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 51(04), pages 1-12.
    • Handle: RePEc:ags:gjagec:98251
    DOI: 10.22004/ag.econ.98251
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/98251/files/3_Petrick.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.98251?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
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. David Mushinski, 1999. "An analysis of offer functions of banks and credit unions in Guatemala," Journal of Development Studies, Taylor & Francis Journals, vol. 36(2), pages 88-112.
    2. Feder, Gershon & Lau, Lawrence J. & Lin, Justin Y. & Xiaopeng, Luo, 1989. "Agricultural credit and farm performance in China," Journal of Comparative Economics, Elsevier, vol. 13(4), pages 508-526, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Petrick, M., 2003. "Sind Polens Landwirte kreditrationiert? Eine mikroökonomische Analyse von Marktversagen in Transformationsprozessen," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 38.
    2. Petrick, Martin, 2002. "Farm Investment, Credit Rationing, And Public Credit Policy In Poland: A Microeconometric Analysis," IAMO Discussion Papers 14872, Institute of Agricultural Development in Transition Economies (IAMO).
    3. Petrick, Martin & Latruffe, Laure, 2003. "Credit access and borrowing costs in Poland's agricultural credit market: a hedonic pricing approach," IAMO Discussion Papers 46, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    4. Petrick, M., 2004. "Investitionsverhalten und staatliche Kreditförderung in der polnischen Landwirtschaft," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 39.
    5. Petrick, Martin & Latruffe, L., 2005. "Measuring the Quality of Agricultural Credit Contracts – A Hedonic Regression Analysis of Effective Interest Rates on Polish Credit Markets," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 40, March.
    6. Petrick, Martin, 2004. "Farm investment, credit rationing, and governmentally promoted credit access in Poland: a cross-sectional analysis," Food Policy, Elsevier, vol. 29(3), pages 275-294, June.
    7. Czubak, Wawrzyniec & Pawłowski, Krzysztof Piotr & Sadowski, Arkadiusz, 2021. "Outcomes of farm investment in Central and Eastern Europe: The role of financial public support and investment scale," Land Use Policy, Elsevier, vol. 108(C).
    8. Martin Petrick & Laure Latruffe & . Leibniz Institute of Agricultural Development In Central And Eastern Europe, 2004. "Measuring the quality of agricultural credit contracts : a hedonic regression analysis of borrowing costs on Polish credit markets," Post-Print hal-02392196, HAL.

    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. Sebastián Auguste & Ricardo N. Bebczuk & Ramiro Moya, 2011. "The Demand for Mortgages under Macro Volatility: The Argentine Case," Research Department Publications 4751, Inter-American Development Bank, Research Department.
    2. Martin Petrick, 2005. "Empirical measurement of credit rationing in agriculture: a methodological survey," Agricultural Economics, International Association of Agricultural Economists, vol. 33(2), pages 191-203, September.
    3. Sundaram-Stukel, Reka, 2003. "Mobility in Rural Credit Markets: A Honduran Case Study," 2003 Annual meeting, July 27-30, Montreal, Canada 22081, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Islam, Asadul & Nguyen, Chau & Smyth, Russell, 2015. "Does microfinance change informal lending in village economies? Evidence from Bangladesh," Journal of Banking & Finance, Elsevier, vol. 50(C), pages 141-156.
    5. Dufhues, Thomas & Buchenrieder, Gertrud & Munkung, Nuchanata, 2012. "Individual social capital and access to formal credit in Thailand," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 123401, International Association of Agricultural Economists.
    6. Petrick, Martin & Spychalski, Grzegorz & Switlyk, Michal & Tyran, Ewa, 2001. "Poland'S Agriculture: Serious Competitor Or Europe'S Poorhouse? Survey Results On Farm Performance In Selected Polish Voivodships And A Comparison With German Farms," IAMO Discussion Papers 14894, Institute of Agricultural Development in Transition Economies (IAMO).
    7. Allison Benson & Jean-Paul Faguet & Maria del pilar López Uribe, 2020. "Increasing Access to Agricultural Credit: The Heterogeneous Effects of Collective Action," Documentos CEDE 18347, Universidad de los Andes, Facultad de Economía, CEDE.
    8. Abbi M. Kedir & Ibrahim,Gamal, 2012. "Household-Level Credit Constraints in Urban Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 20(1), September.
    9. Abid Hussain & Gopal Bahadur Thapa, 2016. "Fungibility of Smallholder Agricultural Credit: Empirical Evidence from Pakistan," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 28(5), pages 826-846, November.
    10. Drakos, Konstantinos & Giannakopoulos, Nicholas, 2011. "On the determinants of credit rationing: Firm-level evidence from transition countries," Journal of International Money and Finance, Elsevier, vol. 30(8), pages 1773-1790.
    11. Jisha, K K & Palakkeel, Prashobhan, 2023. "Availability of agricultural credit: determinants, marginal effect, and predicted probability," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 9(4), December.
    12. Dong, Xiao-Yuan, 1996. "Two-tier land tenure system and sustained economic growth in post-1978 rural China," World Development, Elsevier, vol. 24(5), pages 915-928, May.
    13. Togba, Edith Leadaut, 2012. "Microfinance and households access to credit: Evidence from Côte d’Ivoire," Structural Change and Economic Dynamics, Elsevier, vol. 23(4), pages 473-486.
    14. Deininger, Klaus & Ali, Daniel Ayalew & Alemu, Tekie, 2008. "Impacts of land certification on tenure security, investment, and land markets : evidence from Ethiopia," Policy Research Working Paper Series 4764, The World Bank.
    15. Reyes, Alvaro & Lensink, Robert & Kuyvenhoven, Arie & Moll, Henk, 2012. "Impact of Access to Credit on Farm Productivity of Fruit and Vegetable Growers in Chile," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126217, International Association of Agricultural Economists.
    16. Fletschner, Diana, 2009. "Rural Women's Access to Credit: Market Imperfections and Intrahousehold Dynamics," World Development, Elsevier, vol. 37(3), pages 618-631, March.
    17. Boucher, Stephen R. & Barham, Bradford L. & Carter, Michael R., 2005. "The Impact of "Market-Friendly" Reforms on Credit and Land Markets in Honduras and Nicaragua," World Development, Elsevier, vol. 33(1), pages 107-128, January.
    18. Feder, Gershon & Lau, Lawrence J & Lin, Justin Y & Luo, Xiaopeng, 1992. "The Determinants of Farm Investment and Residential Construction in Post-Reform China," Economic Development and Cultural Change, University of Chicago Press, vol. 41(1), pages 1-26, October.
    19. repec:ebl:ecbull:v:15:y:2006:i:12:p:1-8 is not listed on IDEAS
    20. Demoussis, Michael & Drakos, Konstantinos & Giannakopoulos, Nicholas, 2016. "The Impact of Sovereign Ratings on Eurozone SMEs Credit Rationing," MPRA Paper 76364, University Library of Munich, Germany.
    21. Awotide, B.A. & Abdoulaye, Tahirou & Alene, Arega & Manyong, Victor M., 2015. "Impact of Access to Credit on Agricultural Productivity: Evidence from Smallholder Cassava Farmers in Nigeria," 2015 Conference, August 9-14, 2015, Milan, Italy 210969, International Association of Agricultural Economists.

    More about this item

    Keywords

    International Development;

    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:ags:gjagec:98251. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iahubde.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.