Decomposing dynamics in the farm profitability: an application of Index Decomposition Analysis to Lithuanian FADN sample

Collection:
Mokslo publikacijos / Scientific publications
Document Type:
Straipsnis / Article
Language:
Anglų kalba / English
Title:
Decomposing dynamics in the farm profitability: an application of Index Decomposition Analysis to Lithuanian FADN sample
In the Journal:
Sustainability. 2019, 11 (10), p. 1-15
Keywords:
LT
Šeimos ūkiai; Pelningumas; Lietuva; Indeksinė išskaidymo analizė; DuPont modelis.
EN
Family farms; Profitability; Lithuania; Index decomposition analysis; DuPont model.
Summary / Abstract:

ENThe changes in farm structure have been observed in Lithuania as well as in other Central and Eastern European countries. These changes, to a high extent, have been driven by decreasing profitability of the small farms. In this paper, we look into the changes in the profitability of Lithuanian family farms across different farm size groups. Farm size is measured in terms of the standard output. The period covered is 2005–2016. The index decomposition analysis model and Shapley value are adapted for the analysis. The proposed framework ensures complete decomposition among other desirable properties. The decomposition of the changes in profitability was carried out following the DuPont identity. The results suggest that for small (respectively large) farms the asset turnover (respectively profit margin) component appear more important, whereas the leverage effect remained minimal irrespectively of the farm size group. [From the publication]

ISSN:
2071-1050
Related Publications:
Are Lithuanian family farms profitable and financially sustainable? Evidence using DuPont model, sustainable growth paradigm and index decomposition analysis / Tomas Baležentis, Lina Novickytė. Transformations in business & economics. 2018, vol. 17, no. 1 (43), p. 237-254.
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https://www.lituanistika.lt/content/93589
Updated:
2021-04-27 11:07:43
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