Anna Zubor-Nemes, József Fogarasi, András Molnár and Gábor Kemény
The purpose of this paper is to investigate the role of crop insurance among Hungarian crop farmers and the responses to the introduction of the two-scheme risk management system…
Abstract
Purpose
The purpose of this paper is to investigate the role of crop insurance among Hungarian crop farmers and the responses to the introduction of the two-scheme risk management system. Specifically, first, it examines the economic and environmental factors affecting the willingness of farmers to contract crop insurance. Second, it reveals the relationship between having crop insurance and technical efficiency of crop producing farms.
Design/methodology/approach
Probit models of panel data are applied to explore the factors of insurance decisions. The relationship between efficiency and insurance is investigated with two-stage data envelopment analysis (DEA) model with double bootstrap using panel data for the 2001 to 2014 period.
Findings
The results of Probit model estimations show that the education, the size, the indebtedness of crop producing farms and the new two-scheme risk management system are in positive correlation, while the concentration of farming activity are in negative correlation with the crop insurance contracting. The estimations of two-stage DEA model reveal that crop producing farms with an agricultural insurance contract are more efficient than the farmers without using this risk management tool.
Originality/value
Empirical investigation of the influencing factors of agricultural insurance demand in Hungary and the examination of the relationship between insurance and technical efficiency may contribute to the development of Hungarian risk management system.
Details
Keywords
Štefan Bojnec, Imre Fertő and József Fogarasi
The purpose of this paper is to investigate the impacts of institutional quality (IQ) in exporting and importing countries on agro-food exports from the world's leading emerging…
Abstract
Purpose
The purpose of this paper is to investigate the impacts of institutional quality (IQ) in exporting and importing countries on agro-food exports from the world's leading emerging economies: Brazil, the Russian Federation, India and China (BRIC countries).
Design/methodology/approach
Measuring is based on using the gravity trade model and econometric panel data analysis for the period 1998-2009.
Findings
Agro-food exports from the BRIC countries, particularly Brazil and China, have increased. The Russian Federation has experienced stagnating and volatile patterns. Brazil and India have strengthened market shares in the existing importing markets, while the Russian Federation has experienced severe deterioration. The export of existing products is more important than of new products. Agro-food exports are positively associated with IQ and the size of the gross domestic product in exporting and importing countries, but negatively with distance.
Research limitations/implications
Among IQ variables, the focus is on the indices of legal structure and security of property rights and freedom to trade internationally in agro-food importing countries and the BRIC exporting countries.
Practical implications
Different institutions and their quality can affect agro-food exports differently. The impact of institutions is not uniform across product groups.
Originality/value
This paper adds the impacts of IQ on agro-food exports. Except for processed products for final household consumption, agro-food exports from the BRIC countries are positively associated with the quality of the legal structure, the security of property rights and the freedom to trade internationally as IQ in exporting and importing countries.