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Credit Allocation and Farm Structures in the Czech Republic, 1993–1997

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  • Dirk J. Bezemer

    (Imperial College at Wye, University of London, Wye, Kent TN25 5AH, UK.)

Abstract

In an analysis of primary survey data collected by the author, de novo family farms in the Czech Republic are shown to have had more limited receipt of credit during 1993–1997 than successor organisations to communist-era farms, which are corporate farms. Criteria for credit allocation are investigated for both farm types. It appears that there is a link between farm profitability and obtaining credit for corporate farms, but not for family farms. An explanation for this finding is suggested, taking into account the inadequacy of conventional credit rating instruments in the transition setting and the informational advantage of corporate farms vis-à-vis family farms. Survey findings are in line with some of the implications of this account. Comparative Economic Studies (2003) 45, 25–43. doi:10.1057/palgrave.ces.8100000

Suggested Citation

  • Dirk J. Bezemer, 2003. "Credit Allocation and Farm Structures in the Czech Republic, 1993–1997," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 45(1), pages 25-43, March.
    • Handle: RePEc:pal:compes:v:45:y:2003:i:1:p:25-43
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    Cited by:

    1. Pavel Ciaian & d’Artis Kancs, 2011. "The Impact Of Food Price Shock On Heterogeneous Credit Constrained Firms," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 82(2), pages 115-137, June.
    2. Wolz, Axel & Fritzsch, Jana & Pencakova, Jitka, 2006. "Social Capital Among Agricultural Producers In The Czech Republic: Its Impact On Economic Performance," IAMO Discussion Papers 91965, Institute of Agricultural Development in Transition Economies (IAMO).
    3. D'Artis Kancs & Pavel Ciaian, 2010. "Factor content of bilateral trade: the role of firm heterogeneity and transaction costs," Agricultural Economics, International Association of Agricultural Economists, vol. 41(3‐4), pages 305-317, May.
    4. Karel Janda, 2009. "Credit support to investment in the Czech republic [Úvěrová podpora investičních záměrů v České republice]," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2009(2), pages 3-20.
    5. repec:zbw:iamodp:91965 is not listed on IDEAS
    6. D'Artis Kancs & Pavel Ciaian, 2010. "Factor content of bilateral trade: the role of firm heterogeneity and transaction costs," Agricultural Economics, International Association of Agricultural Economists, vol. 41(3‐4), pages 305-317, May.

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