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The relationship between investments and investment subsidies and labor productivity in agriculture in Poland in 2010–2015

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  • Pawlowska, Aleksandra
  • Rembisz, Vladimir

Abstract

The article analyses the relationship between investments and investment subsidies under the Common Agricultural Policy and labour productivity, both at the level of an individual farm and for the entire sector. Reference is made to labour productivity as the basis for agricultural producers' incomes and to investments affecting the capital factor as a source of productivity improvement. The aim of the article is to present analytical and empirical evidence for a positive relationship between the growth of investments and support for investments under policy instruments on labour productivity. Multivariate analysis of variance (ANOVA) models with interactions were used as a research tool to assess the differentiation of labour productivity due to investments and investment subsidies. The obtained results suggest a catalysing effect of investments and investment support on labour productivity and, indirectly, also on the rationality of agricultural producers' management.

Suggested Citation

  • Pawlowska, Aleksandra & Rembisz, Vladimir, 2018. "The relationship between investments and investment subsidies and labor productivity in agriculture in Poland in 2010–2015," Village and Agriculture (Wieś i Rolnictwo), Polish Academy of Sciences (IRWiR PAN), Institute of Rural and Agricultural Development, vol. 181(4), December.
    • Handle: RePEc:ags:polvaa:344549
    DOI: 10.22004/ag.econ.344549
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    References listed on IDEAS

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    1. Jerzy Michalek & Pavel Ciaian & d’Artis Kancs, 2014. "Capitalization of the Single Payment Scheme into Land Value: Generalized Propensity Score Evidence from the European Union," Land Economics, University of Wisconsin Press, vol. 90(2), pages 260-289.
    2. Kevin J. Stiroh, 2001. "What drives productivity growth?," Economic Policy Review, Federal Reserve Bank of New York, issue Mar, pages 37-59.
    3. Xueqin Zhu & Alfons Oude Lansink, 2010. "Impact of CAP Subsidies on Technical Efficiency of Crop Farms in Germany, the Netherlands and Sweden," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(3), pages 545-564, September.
    4. Paolo Sckokai & Daniele Moro, 2009. "Modelling the impact of the CAP Single Farm Payment on farm investment and output," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 36(3), pages 395-423, September.
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    Keywords

    Agribusiness; Productivity Analysis;

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