Determinants of Economic Growth in Organic Farming: The Case of Bavaria and Baden-WuerttembergThelma Brenes Muñoz, Sebastian Lakner and Bernhard Brümmer No 114270, 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland from European Association of Agricultural Economists Abstract: The organic sector in Germany has experienced a substantial growth since the beginning of the 1990s until today. During this process of expansion, most organic farms have grown in terms of factor endowment, while others have disappeared or reconverted to conventional agriculture. This paper investigates the potential determinants of farms growth in the organic sector. This paper models potential factors that might have an impact on the economic growth of 332 organic farms in Bavaria and Baden-Wuerttemberg. The econometric model was developed based on ‘Gibrat’s Law’, using a fixed effect method (FE). The results suggest that direct marketing and livestock intensity significantly influence farm growth. In addition, less efficient farms grew faster than more efficient ones. This outcome can be explained by the economic pressure on inefficient firms for adaptation during the growth and survival process. Keywords: Farm; Management (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ags:eaae11:114270 Access Statistics for this paper More papers in 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland from European Association of Agricultural Economists Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.