The Relationship of Investments and Subsidies to Labour Productivity in Agriculture in Poland between 2010 and 2015
The Relationship of Investments and Subsidies to Labour Productivity in Agriculture in Poland between 2010 and 2015

Summary/Abstract: Following the microeconomic producer theory as a framework, this paper studiesthe empirical relationship between investments and subsidies from the CAP and labourproductivity on farms, thus also on whole agriculture sector. It refers to labour productivityas the basis of producers’ income and the investments affecting the capital endowment asa major source of productivity improvement. The aim of the article is to present analyticaland empirical evidence of the positive relationship to labour productivity of the growthof investments as well as subsidies on investments. The multifactor ANOVA models withinteractions are used as an applied research tool to assess the differences in labour pro -ductivity, for example by investments and subsidies on investments. The results obtainedindirectly suggest that agricultural producers behave rationally as far as the relationshipbetween investment and labour productivity is concerned.

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