The Impact of Subsidies on Persistent and Transient Technical Inefficiency: Evidence from Polish Dairy Farms

Pisulewski, Andrzej; Marzec, Jerzy

doi:10.1017/aae.2022.26

Cited by 6 publications

(3 citation statements)

References 60 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Contrastingly, direct subsidies to the R&D of incumbent food manufacturers should be carefully reviewed because they encourage the survival and expansion of low‐productivity firms (Acemoglu et al, 2018). Moreover, Pisulewski and Marzec (2022) found that subsidies increase persistent technical inefficiency in the dairy sector.…”

Section: Conclusion and Policy Implicationsmentioning

confidence: 99%

Food companies' productivity dynamics: Exploring the role of intangible assets

Nakatani

2023

Agribusiness

View full text Add to dashboard Cite

Food insecurity has risen amid economic recovery from the COVID‐19 pandemic. Food companies' productivity dynamics can be driven by intangible assets, financing, economies of scale, lifecycle, and technological convergence. We confront this by studying productivity drivers for detailed food manufacturing industries using cross‐country firm‐level panel data. The results show that intangible assets nonlinearly and heterogeneously affect productivity growth, and countries with fewer product market regulations demonstrate higher productivity benefits from asset intangibility. Intangible assets do not play a major role for start‐up companies, while technological convergence drives productivity growth as they learn new technology in the food markets. Regarding the industrial differences, the bakery sector benefits the most from asset intangibility because of its brand images. Financing is particularly important for the meat/fish and dairy sectors, where capital equipment is necessary, and leverage effects are larger for countries with more access to financial institutions. Economies of scale are a vital productivity enhancer in the grain and starch sector for lowering fixed costs. Industrial policies to (i) raise the quality of intangible assets, (ii) promote financial access, and (iii) utilize scale economies are critical for improving the productivity of food manufacturers [EconLit Citations: D24, G32, L66, O34].

show abstract

Section: Conclusion and Policy Implicationsmentioning

confidence: 99%

Food companies' productivity dynamics: Exploring the role of intangible assets

Nakatani

2023

Agribusiness

View full text Add to dashboard Cite

show abstract

“…Given this reality, the relevance of considering this aspect when devising a state financial support program for animal husbandry becomes particularly pronounced during times of war and post-war transition, given the heightened vulnerability of small enterprises in such crisis contexts. Moreover, research by Petrick & Götz (2019) underscores that state subsidies foster a higher growth rate in the cow population within small farms compared to agro-holdings.…”

Section: Ways To Improve the Current State Of The Dairy Industry Of U...mentioning

confidence: 99%

State support of the dairy industry and prospects for its development in the post-war period

Kalaitan,

Stybel,

Hrymak

et al. 2023

Agric. resour. econ.

View full text Add to dashboard Cite

Purpose. The article aims – to identify current trends, determine the level of state support and prospects for the development of the dairy industry in Ukraine in the post-war period, taking into account cooperation with the EU. Methodology / approach. The research was conducted using the comparison method with the nearest EU country – Poland. The analysis of indicators of the development of the dairy industry was carried out on the basis of the data of the State Statistics Service of Ukraine, Poland, Eurostat, and Statista company using methods of relative values, a series of dynamics. Results. Analysis of the dynamics of the main dairy industry indicators in Ukraine revealed a long-term trend towards a decrease in milk production volumes. During 1990–2021, the volume of milk production decreased by 3 times, and the number of cows decreased by 5 times. Since 2020, the dairy industry has shifted from being export-oriented to becoming dependent on imports. On the other hand, Poland, which is geographically and climatically close to Ukraine, shows the opposite dynamics of the dairy industry development. Studying the functioning of the dairy sector in Poland revealed a high level of state financial support and fiscal stimulation. The study shows that the financial support of the dairy industry of Ukraine is noticeably insufficient, and the fiscal stimulation provided is inadequate. Moreover, the efficiency of managing budget funds is low. The situation is further complicated by the ongoing military aggression from russia. Considering the constraints of state funding, it is suggested that the array of instruments for supporting animal husbandry should be tailored based on the scale of entrepreneurial entities involved; differentiation in the provision of state support should also apply to agricultural producers in the de-occupied territories. In order to fully and promptly manage the amount of financing, it is necessary to speed up the procedure for distributing funds between areas and approving financial documentation; it is expedient to consider the possibility of payments for the keeping dairy cattle for small business entities without the need for coordination with the main manager of funds. Originality / scientific novelty. The obtained results allow a deeper investigation of the main development issues of the Ukrainian dairy industry in the pre-war period and under martial law in the context of further European integration. Practical value / implications. The study’s findings can be the basis for further scientific research in the direction of developing a comprehensive set of measures to stimulate Ukraine’s dairy industry. This is of particular importance in the post-war period promoting the restoration of food security.

show abstract

“…Polish dairy farms are rather small, and the impact of COVID-19 was rather small. Poland's accession to the EU in 2004 created good prospects for dairy farms (Pisiulewski and Marzec 2022). So, summing up, the COVID-19 pandemic had a tremendous impact on dairy supply chains because they are vulnerable to shock (Karwasra et al 2021).…”

mentioning

confidence: 99%

Changes in the comparative advantage of Polish dairy products

Bórawski¹,

Bełdycka-Bórawska²,

Parzonko³

et al. 2022

AGR ECON-CZECH

View full text Add to dashboard Cite

Competitiveness is one of the key concepts in economic sciences, andit is defined as the ability of businesses to compete in the market. The aim of this study was to assess the competitiveness of dairy products in Poland. The competitiveness was evaluated in a macroeconomic approach by analysing the exports, imports, and the trade balance. The results were processed and presented with the use of tabular, graphic, and descriptive methods. After Poland joined the European Union (EU) in 2004, one of the key goals was to improve the quality, storage, and applicability of dairy products, and to promote trade in milk and dairy products. The Polish dairy industry reported a positive balance in the foreign trade of milk and dairy products, which contributed to positive values in the competitiveness indicators of dairy products. The values of the export specialisation index (SI), export revealed comparative advantage (XRCA), relative import penetration index (MRCA), foreign trade coverage ratio (CRK), and the Grubel-Lloyd intra-industry trade index (IITk) were positive, which attests to the competitiveness of Polish dairy products. We proved that the COVID-19 pandemic had an impact on the competitiveness of dairy enterprises in Poland.

show abstract

The Impact of Subsidies on Persistent and Transient Technical Inefficiency: Evidence from Polish Dairy Farms

Cited by 6 publications

References 60 publications

Food companies' productivity dynamics: Exploring the role of intangible assets

Food companies' productivity dynamics: Exploring the role of intangible assets

State support of the dairy industry and prospects for its development in the post-war period

Changes in the comparative advantage of Polish dairy products

Contact Info

Product

Resources

About