The investment behaviour of dairy farms in transition economies

This article investigates dairy farm investment behaviour and the presence of soft budget constraints in farms Baltic Central European transition countries – Estonia, Hungary Slovenia using individual accountancy panel data for years 2007–2015. The empirical results confirm that gross is positively associated with previous year financially unconstrained farms, negatively constrained farms. It also public subsidies, and, except Slovenia, growth real sales Mixed are found squared cash flow variables. A particularly significant negative regression coefficient implies Estonian Slovenian while insignificant coefficients imply weak Hungarian