Acta Univ. Agric. Silvic. Mendelianae Brun. 2016, 64(4), 1345-1351 | DOI: 10.11118/actaun201664041345

Evaluation of Effects of Investment Support in the Czech Dairy Industry

Zdeňka Náglová1, Jindřich Špička2, Martin Gürtler1
1 Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences Prague, Kamýcká 129, 165 21, Prague 6, Czech Republic
2 Department of Strategy, Faculty of Business Administration, University of Economics, Prague, nám. W. Churchilla 4, 130 67, Prague 3, Czech Republic

The article deals with investment subsidies which were drawn by enterprises of the dairy industry in 2007-2013. It is a subsidy within the Rural Development Programme 2007-2013 and the National subsidies. This article aims to assess whether these subsidies have contributed to higher economic efficiency of enterprises. The impact of investment grants to economic indicators (sales, debt ratio, labour productivity and production consumption) is evaluated. 35 dairy enterprises that drew investment grants, were analyzed in total. According to the results, grants from national sources have a greater impact on the economy of businesses. National subsidies improve labour productivity, sales and production consumption. Impacts of subsidies drawn from the Rural Development Programme are less noticeable. These subsidies affect only the production consumption by its decreasing. The market situation in 2008 and 2009 also influenced the rated indicators.

Keywords: dairy industry, investment grants, Rural Development Programme, National subsidies, economy of business, efficiency, fixed effect model
Grants and funding:

This article was created with the support of the Internal grant agency of the Faculty of Economics and Management of the Czech University of Life Sciences Prague. Grant title: Analysis of the Effectiveness of Investment Aid in the Field of Food Industry. Registration number 20151028.

Prepublished online: August 30, 2016; Published: September 1, 2016  Show citation

ACS AIP APA ASA Harvard Chicago IEEE ISO690 MLA NLM Turabian Vancouver
Náglová, Z., Špička, J., & Gürtler, M. (2016). Evaluation of Effects of Investment Support in the Czech Dairy Industry. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 64(4), 1345-1351. doi: 10.11118/actaun201664041345
Share...
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. ANKARHEM, M., DAUNFELDT, S., QUORESHI, S., RUDHOLM, N. 2010. Do regional investment grants improve firm performance? Technology and Investment, 1(3): 221 - 227. DOI: 10.4236/ti.2010.13027 Go to original source...
    2. ARELLANO, M. 2003. Panel Data Econometrics. Oxford: Oxford University Press. Go to original source...
    3. BALTAGI, B. H. 2008. Econometric Analysis of Panel Data. 4th Edition. Chichester: John Wiley and Sons.
    4. BERGSTRÖM, F. 2000. Capital Subsidies and the Performance of Firms. Small Business Economics, 14: 183 - 93. DOI: 10.1023/A:1008133217594 Go to original source...
    5. BERNINI, C., PELLEGRINI, G. 2011. How are growth and productivity in private firms affected by public subsidy? Evidence from a regional policy. Regional Science and Urban Economics, 41: 253 - 265. DOI: 10.1016/j.regsciurbeco.2011.01.005 Go to original source...
    6. BROUWER, E., KLEINKNECHT, A., REIJEN, J. 1993. Employment Growth and Innovation at the Firm Level. Journal of Evolutionary Economics, 3:153 - 159. DOI: 10.1007/BF01213832 Go to original source...
    7. CARLUCCI, C., PELLEGRINI, G. 2005. Nonparametric analysis of the effects on employment of public subsidies to capital accumulation: the case of law 488/92 in Italy. In: Congress AIEL, Modena.
    8. CHOW, G. C. 1960. Test of Equality between Sets of Coefficients in Two Linear Regressions. Econometrica, 28(3): 591 - 605. DOI: 10.2307/1910133 Go to original source...
    9. CRISCUOLO, C., MARTIN, R., OVERMAN, H., VAN REENEN, J. 2009. The Causal Effects of an Industrial Policy. Nber Working Paper Series. Working Paper 17842. Cambrigde.
    10. ČECHURA, L., HOCKMAN, H. 2010. Sources of economic growth in the Czech food processing. Prague Economic Papers, 2:169 - 182. DOI: 10.18267/j.pep.370 Go to original source...
    11. DEL MONTE, A., PAPAGNI, E. 2003. Randamp;D and the growth of firms: empirical analysis of a panel of Italian firms. Research Policy, 32: 1003 - 1014. DOI: 10.1016/S0048-7333(02)00107-5 Go to original source...
    12. FREEL, M. S. 2000. Do small innovating firms outperform noninnovators? Small Business Economics, 14: 195 - 210. DOI: 10.1023/A:1008100206266 Go to original source...
    13. GEGROSKI, P. A., TOKER, S. 1996. The turnover of market leaders in UK manufacturing industry. International Journal of Industrial Organization, 14: 141 - 158. DOI: 10.1016/0167-7187(95)00479-3 Go to original source...
    14. GEROSKI, P. A., MACHIN, J., WALTERS C. F. 1997. Corporate growth and profitability. Journal of Industrial Economics, 45(2): 171 - 189. DOI: 10.1111/1467-6451.00042 Go to original source...
    15. GHAZALIAN P. L., FURTAN, W. H. 2007. The effect of innovation on agricultural and agri-food exports in OECD countries. Journal of Agricultural and Resource Economics, 32: 447 - 461.
    16. GREENE, W. H. 2012. Econometric Analysis. 5th Edition. Harlow: Pearson Education
    17. HALL, P. 1994. Innovation, Economics and Evolution. Hemel Hempstead: Harvester Wheatsheaf.
    18. HARRIS, R., TRAINOR, M. 2005. Capital Subsidies and Their Impact on Total Factor Productivity: Firm-level Evidence from Northern Ireland. Journal of Regional Science, 45: 49 - 74. DOI: 10.1111/j.0022-4146.2005.00364.x Go to original source...
    19. KALANTARIDIS, C., PHEBY, J. 1999. Processes of Innovation Among Manufacturing SMEs: The Experience of Bedfordshire. Entrepreneurship and Regional Development, 11(1): 57 - 78. DOI: 10.1080/089856299283290 Go to original source...
    20. KNUDSON, W., WYSOCKI, A, CHAMPAGNE, J, PETERSON, H. P. 2004. Entrepreneurship and innovation in the agri-food system. American Journal of Agricultural Economics, 86: 1330 - 1336. DOI: 10.1111/j.0002-9092.2004.00685.x Go to original source...
    21. LEE, J. W. 1996. Government Interventions and Productivity Growth. Journal of Economic Growth, 1: 391 - 414. DOI: 10.1007/BF00141045 Go to original source...
    22. MEDONOS, T., RATINGER, T., HRUŠKA, M., ŠPIČKA, J. 2012. The Assessment of the Effects of Investment Support Measures of the Rural Development Programmes: the Case of the Czech Republic. Agris on-line Papers in Economics and Informatics, 4(4): 35 - 47.
    23. MENRAD, K. 2004. Innovations in the food industry in Germany. Research policy, 33: 845 - 878. DOI: 10.1016/j.respol.2004.01.012 Go to original source...
    24. MEZERA, J. NĚMEC, R., ŠPIČKA, J. 2014. Support of strengthening the cooperation and efficiency factors accelerating innovation processes in the food industry. Agricultural Economics, 60(7): 295 - 300. Go to original source...
    25. MEZERA, J., ŠPIČKA, J. 2013. Economic Effects of Investment Support of Adding Value to Food. Agris on-line Papers in Economics and Informatics, 5(1): 39 - 49.
    26. MINISTRY OF AGRICULTURE (MoA). 2015. Panorama of food industry 2014 [in Czech: Panorama potravinářského průmyslu 2014]. Praha: Ministry of Agriculture.
    27. MOORE, B. 1995. What Differentiates Innovative Small Firms? Innovation Initiative Paper No. 4. ESRC Centre for Business Research, University of Cambridge.
    28. MROCZEK, R. 2013. Investment, assets of enterprises and productivity of the polish food industry. In: Hradec Economic Days 2013. International Conference, Hradec Králové, 258 - 265.
    29. PUTIĆOVA, M., MEZERA, J. 2009. Research, development and innovation in the Czech food industry - perspectives. Agricultural Economics, 55: 534 - 540. Go to original source...
    30. RATINGER, T., MEDONOS, T., HRUŠKA, M. 2013. An Assessment of the Differentiated Effects of the Investment Support to Agricultural Modernisation: the Case of the Czech Republic. Agris on-line Papers in Economics and Informatics, 5(3), 153 - 164.
    31. RODGERS, S. 2011. Food service research: An integrated approach. International Journal of Hospitality Management, 30: 477 - 483. DOI: 10.1016/j.ijhm.2010.05.002 Go to original source...
    32. ROPER, S. 1997. Product Innovation and Small Business Growth: A Comparison of the Strategies of German, UK and Irish Companies. Small Business Economics, 9(6): 523 - 537. DOI: 10.1023/A:1007963604397 Go to original source...
    33. SKURAS, D., K. TSEKOURAS., E. DIMARA, TZELEPIS, D. 2006. The Effects of Regional Capital Subsidies on Productivity Growth: A Case Study of the Greek Food and Beverage Manufacturing Industry. Journal of Regional Science, 46: 355 - 381. DOI: 10.1111/j.0022-4146.2006.00445.x Go to original source...
    34. ŠPIČKA, J., SMUTKA, L., SELBY, R. 2015. Recent areas of innovation activities in the Czech dairy industry. Agricultural Economics - Czech, 61(6): 249 - 264. DOI: 10.17221/128/2014-AGRICECON Go to original source...
    35. TETHER, B., MASSINI, S. 1998. Employment Creation in Small Technological and Design Innovators in the UK during the 1980s. Small Business Economics, 11(4): 353 - 370. DOI: 10.1023/A:1008065115819 Go to original source...
    36. WESTHEAD, P., COWLING, M. 1995. Employment Change in Independent Owner-managed High Technology Firms in Great Britain. Small Business Economics, 7(2): 111 - 140. DOI: 10.1007/BF01108686 Go to original source...
    37. WIJNANDIS, J. H. M., BRAMMERS, H. J., van der MEULEN, B. M. J., POPPE, K. J. 2008. An economic and legal assessment of the EU food industry's competitiveness. Agribusiness, 24(4): 417 - 439. DOI: 10.1002/agr.20167 Go to original source...

    This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content