IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i19p11809-d919935.html
   My bibliography  Save this article

Industry Differences in Productivity—In Agriculture and Tourism by Lake Balaton, Hungary

Author

Listed:
  • Zsuzsanna Bacsi

    (Institute of Agricultural and Food Economics, Hungarian University of Agriculture and Life Sciences, HU-2100 Gödöllő, Hungary)

  • Lóránt Dénes Dávid

    (Faculty of Economics and Business, John von Neumann University, HU-6000 Kecskemét, Hungary
    Institute of Rural Development and Sustainable Economy, Hungarian University of Agriculture and Life Sciences, HU-2100 Gödöllő, Hungary)

  • Zsolt Hollósy

    (Institute of Agricultural and Food Economics, Hungarian University of Agriculture and Life Sciences, HU-2100 Gödöllő, Hungary
    Institute of Economics, Faculty of Social Sciences, Eötvös Loránd University, HU-1053 Budapest, Hungary)

Abstract

The paper compared the performance of firms in agriculture and in tourism in two countryside areas of Hungary, assessing 2613 firms for 16 years (2004–2019). The data are from tax reports of all firms of the analysed areas. Agriculture and countryside tourism depend on environmental factors, thus they are more seriously affected by adverse environmental events than other production or service industries. The research was aimed at identifying differences between the two industries, and reveal time patterns and size-related traits of performance. Labour force, sales revenues, total assets, labour productivity, and total factor productivity (TFP) were analysed with descriptive statistics and panel regression analysis. Results reveal that the performance of firms in these industries differ significantly regarding total assets, sales revenues, labour force, and labour productivity, but does not differ in TFP, and differences are associated either with average levels of indicator values or their temporal tendencies. Our results underline that firm performance considerably differs by firm size, smaller firms are generally more labour-efficient than larger ones, and labour efficiency is positively impacted by total asset level, but TFP is not. Agriculture was found to be not less efficient than tourism, contrary to general assumptions.

Suggested Citation

  • Zsuzsanna Bacsi & Lóránt Dénes Dávid & Zsolt Hollósy, 2022. "Industry Differences in Productivity—In Agriculture and Tourism by Lake Balaton, Hungary," Sustainability, MDPI, vol. 14(19), pages 1-19, September.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:19:p:11809-:d:919935
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/19/11809/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/19/11809/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Choonwoo Lee & Kyungmook Lee & Johannes M. Pennings, 2001. "Internal capabilities, external networks, and performance: a study on technology‐based ventures," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 615-640, June.
    2. Luis Garicano & Claire Lelarge & John Van Reenen, 2016. "Firm Size Distortions and the Productivity Distribution: Evidence from France," American Economic Review, American Economic Association, vol. 106(11), pages 3439-3479, November.
    3. Davis, Steven J & Henrekson, Magnus, 1999. "Explaining National Differences in the Size and Industry Distribution of Employment," Small Business Economics, Springer, vol. 12(1), pages 59-83, February.
    4. Anabel Marin & Lizbeth Navas-Alemán & Carlota Perez, 2015. "Natural Resource Industries As a Platform for the Development of Knowledge Intensive Industries," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 106(2), pages 154-168, April.
    5. Sheng, Yu & Chancellor, Will, 2019. "Exploring the relationship between farm size and productivity: Evidence from the Australian grains industry," Food Policy, Elsevier, vol. 84(C), pages 196-204.
    6. Bernard, Andrew B & Jones, Charles I, 1996. "Productivity across Industries and Countries: Time Series Theory and Evidence," The Review of Economics and Statistics, MIT Press, vol. 78(1), pages 135-146, February.
    7. Hans Degryse & Peter Goeij & Peter Kappert, 2012. "The impact of firm and industry characteristics on small firms’ capital structure," Small Business Economics, Springer, vol. 38(4), pages 431-447, May.
    8. Eric Bartelsman & John Haltiwanger & Stefano Scarpetta, 2013. "Cross-Country Differences in Productivity: The Role of Allocation and Selection," American Economic Review, American Economic Association, vol. 103(1), pages 305-334, February.
    9. Eric Bartelsman & Stefano Scarpetta & Fabiano Schivardi, 2003. "Comparative Analysis of Firm Demographics and Survival: Micro-Level Evidence for the OECD Countries," OECD Economics Department Working Papers 348, OECD Publishing.
    10. Danny Leung & Césaire Meh & Yaz Terajima, 2008. "Firm Size and Productivity," Staff Working Papers 08-45, Bank of Canada.
    11. Martin, Will & Mitra, Devashish, 1999. "Productivity growth and convergence in agriculture and manufacturing," Policy Research Working Paper Series 2171, The World Bank.
    12. Grau, Alfredo Juan & Reig, Araceli, 2018. "Trade credit and determinants of profitability in Europe. The case of the agri-food industry," International Business Review, Elsevier, vol. 27(5), pages 947-957.
    13. ANITA M. McGAHAN & MICHAEL E. PORTER, 1997. "How Much Does Industry Matter, Really?," Strategic Management Journal, Wiley Blackwell, vol. 18(S1), pages 15-30, July.
    14. Markus Poschke, 2018. "The Firm Size Distribution across Countries and Skill-Biased Change in Entrepreneurial Technology," American Economic Journal: Macroeconomics, American Economic Association, vol. 10(3), pages 1-41, July.
    15. Davis, Steven J & Haltiwanger, John & Schuh, Scott, 1996. "Small Business and Job Creation: Dissecting the Myth and Reassessing the Facts," Small Business Economics, Springer, vol. 8(4), pages 297-315, August.
    16. Baumol, William J, 1986. "Productivity Growth, Convergence, and Welfare: What the Long-run Data Show," American Economic Review, American Economic Association, vol. 76(5), pages 1072-1085, December.
    17. Siobhan McQuaid & Esmee D. Kooijman & Mary-Lee Rhodes & Sheila M. Cannon, 2021. "Innovating with Nature: Factors Influencing the Success of Nature-Based Enterprises," Sustainability, MDPI, vol. 13(22), pages 1-25, November.
    18. Pierpaolo Pattitoni & Barbara Petracci & Massimo Spisni, 2014. "Determinants of profitability in the EU-15 area," Applied Financial Economics, Taylor & Francis Journals, vol. 24(11), pages 763-775, June.
    19. Alper, Deger & Anbar, Adem, 2011. "Bank Specific and Macroeconomic Determinants of Commercial Bank Profitability: Empirical Evidence from Turkey," Business and Economics Research Journal, Uludag University, Faculty of Economics and Administrative Sciences, vol. 2(2), pages 139-139, April.
    20. Richard Blundell & Rachel Griffith & John van Reenen, 1999. "Market Share, Market Value and Innovation in a Panel of British Manufacturing Firms," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 66(3), pages 529-554.
    21. Marín, Anabel & Navas-Alemán, Lizbeth & Perez, Carlota, 2015. "Natural resource industries as a platform for the development of knowledge intensive industries," Nülan. Deposited Documents 2689, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    22. Schmalensee, Richard, 1985. "Do Markets Differ Much?," American Economic Review, American Economic Association, vol. 75(3), pages 341-351, June.
    23. Richard P. Rumelt, 1991. "How much does industry matter?," Strategic Management Journal, Wiley Blackwell, vol. 12(3), pages 167-185, March.
    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. Oana Coca & Diana Creangă & Ștefan Viziteu & Ioan Sebastian Brumă & Gavril Ștefan, 2023. "Analysis of the Determinants of Agriculture Performance at the European Union Level," Agriculture, MDPI, vol. 13(3), pages 1-23, March.

    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. Stefan Hirsch, 2018. "Successful In The Long Run: A Meta†Regression Analysis Of Persistent Firm Profits," Journal of Economic Surveys, Wiley Blackwell, vol. 32(1), pages 23-49, February.
    2. Meghana Ayyagari & Asli Demirguc-Kunt & Vojislav Maksimovic, 2021. "Are large firms born or made? Evidence from developing countries," Small Business Economics, Springer, vol. 57(1), pages 191-219, June.
    3. Stefan Hirsch & Jan Schiefer, 2016. "What Causes Firm Profitability Variation in the EU Food Industry? A Redux of Classical Approaches of Variance Decomposition," Agribusiness, John Wiley & Sons, Ltd., vol. 32(1), pages 79-92, January.
    4. Zouaghi, Ferdaous & Hirsch, Stefan & Garcia, Mercedes Sanchez, 2016. "What Drives Firm Profitability? A Multilevel Approach To The Spanish Agri-Food Sector," 56th Annual Conference, Bonn, Germany, September 28-30, 2016 244762, German Association of Agricultural Economists (GEWISOLA).
    5. Cristina Fernández & Roberta García & Paloma Lopez-Garcia & Benedicta Marzinotto & Roberta Serafini & Juuso Vanhala & Ladislav Wintr, 2017. "Firm growth in Europe: An overview based on the COMPNET labour module," BCL working papers 107, Central Bank of Luxembourg.
    6. Bachas, Pierre & Fattal Jaef, Roberto N. & Jensen, Anders, 2019. "Size-dependent tax enforcement and compliance: Global evidence and aggregate implications," Journal of Development Economics, Elsevier, vol. 140(C), pages 203-222.
    7. Yi-Min Chen, 2008. "How Much Does Country Matter?," International Regional Science Review, , vol. 31(4), pages 404-435, October.
    8. Miguel A. Ariño & Africa Ariño & Roberto Garcia-Castro, 2008. "A model to evaluate transient industry effects," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(8), pages 629-637.
    9. Mercè Sala‐Ríos, 2024. "What are the determinants affecting cooperatives’ profitability? Evidence from Spain," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 95(1), pages 85-111, March.
    10. Raza, Syed Ali & Farooq, M. Shoaib & Khan, Nadeem, 2011. "Firm and industry effects on firm profitability: an empirical analysis of KSE," MPRA Paper 36797, University Library of Munich, Germany.
    11. Changhyun Kim & Richard A. Bettis, 2014. "Cash is surprisingly valuable as a strategic asset," Strategic Management Journal, Wiley Blackwell, vol. 35(13), pages 2053-2063, December.
    12. Markus A. Fitza, 2014. "The use of variance decomposition in the investigation of CEO effects: How large must the CEO effect be to rule out chance?," Strategic Management Journal, Wiley Blackwell, vol. 35(12), pages 1839-1852, December.
    13. Christmann, Petra & Day, Diana & Yip, George S., 1999. "The relative influence of country conditions, industry structure, and business strategy on multinational corporation subsidiary performance," Journal of International Management, Elsevier, vol. 5(4), pages 241-265.
    14. Eriksen, Bo & Knudsen, Thorbjorn, 2003. "Industry and firm level interaction: Implications for profitability," Journal of Business Research, Elsevier, vol. 56(3), pages 191-199, March.
    15. Alain Gilles FOKA TAGNE & Nestor Magloire LETSINA & David Claude NOUHOU NKENGANG & Aurélien FOMEKONG NOUBOSSE, 2021. "Rôle des outils de contrôle de gestion dans l’amélioration de la performance organisationnelle des entreprises au Cameroun," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 12(2), pages 103-123, December.
    16. Andrew B. Jackson & Marlene A. Plumlee & Brian R. Rountree, 2018. "Decomposing the market, industry, and firm components of profitability: implications for forecasts of profitability," Review of Accounting Studies, Springer, vol. 23(3), pages 1071-1095, September.
    17. Martijn J. Burger & Frank G. Oort & Otto Raspe, 2011. "Agglomeration and New Establishment Survival: A Mixed Hierarchical and Cross-Classified Model," Advances in Spatial Science, in: Karima Kourtit & Peter Nijkamp & Roger R. Stough (ed.), Drivers of Innovation, Entrepreneurship and Regional Dynamics, pages 45-63, Springer.
    18. Jose G. Vargas-Hernandez, M.B.A., 2014. "Research Methodology Strategies In Strategic Management," Interdisciplinary Management Research, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 10, pages 106-147.
    19. Dmitry Sharapov & Paul Kattuman & Diego Rodriguez & F. Javier Velazquez, 2021. "Using the SHAPLEY value approach to variance decomposition in strategy research: Diversification, internationalization, and corporate group effects on affiliate profitability," Strategic Management Journal, Wiley Blackwell, vol. 42(3), pages 608-623, March.
    20. J. Vineesh Prakash & D. K. Nauriyal, 2020. "Automotive Components Industry and Profitability Factors: Evidence from India," Vision, , vol. 25(2), pages 209-223, June.

    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:gam:jsusta:v:14:y:2022:i:19:p:11809-:d:919935. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.