Testing for the effects of credit crunch on agriculture investment in the EU

Abstract

There are several research papers focusing on the detrimental effects of the credit crunch on the economic performance. A sector of the economy where the implications of the credit crunch have not been thoroughly studied is the agriculture. This is surprising given the importance of agriculture for the European economy. We focus on agriculture in fourteen European Union (EU) Member States in the aftermath of the credit crunch. To this end, we employ the micro-econometric data set of Farm Accountancy Data Network (FADN) of EU at NUTS 2 level. From a methodological point of view, we model agriculture investment based on a flexible panel Vector Autoregressive (VAR) model that provides impulse response functions (IRFs) and variance decompositions (VDCs). The empirical estimates indicate that agriculture investment has been constrained by negative shocks in interest paid and total liabilities. Unless those financial constraints are eased, agriculture investment in EU would remain rather sluggish at best.

Sustainable Livestock Farming in the European Union: A Study on Beef Farms in NUTS 2 Regions

“…Another study assessed the so-called regional convergence, analyzing it in terms of the deviation of the growth rate among regions, a factor of particular importance for the proper design of regional development, which is a fundamental pillar of CAP [37]. Along the same lines, other authors have investigated the economic impact of the CAP subsidies in representative regions [38,39], assessing the effects of rural development programs [40], or even estimating the effects of a credit crunch on agricultural investments [41].…”

Permasalahan Credit Crunch Perbankan Syariah Di Indonesia Ditinjau Dari Tawhidi String Relation

“…Kajian mengenai credit crunch sudah pernah dilakukan oleh para peneliti baik nasional maupun internasional, diantaranya yaitu Buera and Nicolini (2020); Darmouni (2020); Grilli, Tedeschi, and Gallegati (2020); Kim (2020); Mamatzakis and Staikouras (2020); Awdeh and El-Moussawi (2021); Bach, Le, and Bui (2021); Barney and Souksakoun (2021); Baubeau et al (2021); Girardi and Ventura (2021); Guo, Li, and Li (2021); Kurniawati and Halisa (2021); Margono (2021); Pyka and Pyka (2021); Apritchzeki and Purwitasari (2022); Kartika, Lestari, and Madyasari (2022); Septiavin et al (2022) , dengan metode dan hasil yang beragam. Namun dari semua kajian tersebut belum ada yang membahas credit crunch dari segi Tawhidi String Relation.…”