CHARACTERIZATION OF AGRICULTURAL SYSTEMS IN THE EUROPEAN UNION REGIONS: A FARM DIMENSION- COMPETITIVENESS-TECHNOLOGY INDEX AS BASE

Vítor João Pereira Domingues MARTINHO

Coordinator Professor with Aggregation, Agricultural School, Polytechnic Institute of Viseu, 3500 Viseu, Portugal

vdmartinho@esav.ipv.pt

Abstract

The agricultural realities across the several regions belonging to the European Union (EU) present some significant differences, in terms of the socioeconomics, cultural, structural and environmental dimensions. In general, because it is difficult to consider all the realities, within each country, sometimes the public decision makers, in Europe, need to design common approaches for all countries and regions, despite there being some decentralization of decisions. In this scenario, this study aims to identify and characterize the main agricultural systems in the European Union, using statistical information available in the FADN (2017), for the periods 2007-2009 and 2012-2013. This was done, considering the utilized agricultural area (farm dimension), the machinery (farm technology and innovation) and the farm net value added (farm competitiveness) as principal indicators. From these variables the European Union countries and regions were grouped into agricultural systems through cluster approaches and based on a farm dimension-competitiveness-technology index obtained with factor analysis. This approach was complemented by spatial analysis, through the observation of spatial autocorrelation between European Union countries, as determining the farming characteristics in neighboring countries. Of stressing, the relevant differences in the farm characteristics, not only, among European countries, but also, inside each member state between regions. On the other hand, of highlighting the adequacy of the index considered as representative of the farming particularities.

Keywords: European Union regions, Farm Accountancy Data Network (FADN), Spatial approaches, Factor and clusters analysis

JEL classification: C21, C38, O13, O52, Q10
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SMEs’ CREDIT DEMAND AND ECONOMIC GROWTH IN INDONESIA

M. Shabri ABD. MAJID

Senior Lecturer, Faculty of Economics and Business, Syiah Kuala Kuala University, Indonesia

mshabri@unsyiah.ac.id

HAMDANI

Financial Consultant for the SMEs and Bank’s Partner, Aceh Province, Indonesia, Graduate Student in Economics, Faculty of Economics and Business, Syiah Kuala Kuala University, Indonesia

hamdani.aceh@gmail.com

Muhammad NASIR

Senior Lecturer, Faculty of Economics and Business, Syiah Kuala Kuala University, Indonesia

nasirmsi@yahoo.com

FAISAL

Senior Lecturer, Faculty of Economics and Business, Syiah Kuala Kuala University, Indonesia

faisal_nurmala@yahoo.com

Abstract

This study aims at empirically exploring the short- and long-run relationships between economic growth, non-performing loans, interest rates and the credit demand by the small and medium enterprises (SMEs) in Aceh province, Indonesia. The quarterly data for the period 1995 to 2015 were analyzed by the cointegration and vector error correction model (VECM). The study documented that there was a cointegration among the economic growth, non-performing loans, interest rates and the credit demand, implying the existence of long-run equilibrium among the variables. In addition, in short-run, the study found a unidirectional causality from economic growth to credit demand, a bidirectional causality between interest rates and credit demand, while no causality existed between non-performance loan and credit demand by the SMEs in Aceh, Indonesia. Thus, to enhance the SMEs, the government should focus on promoting the economic growth by managing the stability of interest rates in the province.

Keywords: Credit demand, Economic growth, Non-performing loan, SMEs.

JEL classification: C22, E59, O49, H81
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SCOTTISH INDEPENDENCE: HOW WOULD IT AFFECT THE COUNTRY’S FOREIGN TRADE?

Lucie COUFALOVÁ

Specialist, Faculty of Business and Administration, Masaryk University, Czech Republic

174064@mail.muni.cz

Abstract

The aim of this paper is to identify the main determinants of Scotland’s foreign trade and, above all, the EU’s role in the volume of the country’s exports, as its EU membership is one of the key arguments in the political discourse about independence. The article highlights the results of opinion polls in the country, as well as the relationship between economic integration and political disintegration. The methodological approach adopted is the gravity model of international trade. Given the large number of zero flows present in the data sample, the Tobit model proved to be a more suitable technique for the estimation. The Random effects model estimates are also provided in order to prove the robustness of the estimates. The results of the study allow for more substantiated conclusions about the main determinants of Scotland’s foreign trade, as well as they provide arguments for discussing the implications of Scottish independence.

Keywords: Scotland, independence, European Union, international trade, gravity model

JEL classification: F13, F47, F15, R15

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