ISSN 2284-7995, ISSN Online 2285-3952
 

FARM DEBT AND INVESTMENT. EMPIRICAL EVIDENCE FROM BULGARIAN AGRICULTURE

Published in Scientific Papers. Series "Management, Economic Engineering in Agriculture and rural development", Vol. 24 ISSUE 2
Written by Desislava IVANOVA, Evgeni GENCHEV

This article explores the relationship between farmers' investment activity and debt structure in order to bring out the factors mediating the outcome. Overleveraging is one of the most serious problems faced by the Bulgarian farmers due to the high levels of competition in the EU. This research is based on a stratified random sample of 5% (2,985 observations) on farms in the agricultural sector encompassing the sub-sectors crop production, livestock production and auxiliary activities, with a research horizon of five years. A fixed-effect panel threshold regression analysis is used. The obtained results show that where the debt level is high, this has a negative impact on the investment activity of the farms in the agriculture sector.

[Read full article] [Citation]

IVANOVA D., GENCHEV E. 2024, FARM DEBT AND INVESTMENT. EMPIRICAL EVIDENCE FROM BULGARIAN AGRICULTURE. Scientific Papers. Series "Management, Economic Engineering in Agriculture and rural development", Vol. 24 ISSUE 2, PRINT ISSN 2284-7995, 549-556.

The publisher is not responsible for the opinions published in the Volume. They represent the authors’ point of view.

© 2019 To be cited: Scientific Papers. Series “Management, Economic Engineering in Agriculture and Rural Development“.

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