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Financial exposure and productive performance in French arable farms

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  • Stéphane Blancard

    (CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - ENESAD - Etablissement National d'Enseignement Supérieur Agronomique de Dijon - INRA - Institut National de la Recherche Agronomique)

Abstract

This paper examines the dynamic relationship between financial exposure and productive performance in agriculture. To this end, Granger's concept of causality and VAR representation are used. Indeed, in spite of several studies, the causality and the direction are not clearly defined. However, investigation of this question can provide with valuable information at policy makers to formulate appropriate credit policies. Using a large micro panel of French farmers over 1994−2001, we find that there is a bidirectional causality running from financial constraints and productive performance. Nevertheless, variance decompositions and impulse response analysis suggest a weak relationship existing between these two variables.

Suggested Citation

  • Stéphane Blancard, 2006. "Financial exposure and productive performance in French arable farms," Post-Print hal-02660809, HAL.
    • Handle: RePEc:hal:journl:hal-02660809
    Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-02660809
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    3. Stéphane Blancard & Jean-Philippe Boussemart & Walter Briec & Kristiaan Kerstens, 2006. "Short- and Long-Run Credit Constraints in French Agriculture: A Directional Distance Function Framework Using Expenditure-Constrained Profit Functions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 351-364.
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