Management Theory and Studies for Rural Business and Infrastructure Development, Volume 37, Number 3

The evaluation of the impact of support on Lithuanian farms investments

Irena Kriščiukaitienė, Virginia Namiotko, Rolandas Kripaitis

Abstract

The paper aims to evaluate the impact of support on Lithuanian farms investments. Logistic regression, also called a logit model, was used to determine the probability of investing. The regression was estimated on cross-sectional data set of Lithuanian family farms participating in the Farm Accountancy Data Network. It was specified for investments in machinery and equipment. The research showed that support encourages investments in machinery and equipment. However, scenario analysis revealed that the impact of different support scenarios on the probability of investing is relatively small. It was also confirmed the importance of farm characteristics in making investments.

JEL Codes: C50, G11, Q12.

Keyword(s): investment, logistic regression, support


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DOI: http://dx.doi.org/10.15544/mts.2015.34

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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355

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