Virginia Namiotko,

Lithuanian Institute of Agrarian Economics,

Vilnius, Lithuania,

E-mail: virginia@laei.lt

The impact of investment support on labour productivity in Lithuanian family farms: A propensity score matching approach

Aistė Galnaitytė,

Lithuanian Institute of Agrarian Economics,

Vilnius, Lithuania,

E-mail: aiste@laei.lt

Tomas Baležentis,

Lithuanian Institute of Agrarian Economics,

Vilnius, Lithuania,

E-mail: tomas@laei.lt

Peng Wang,

Chongqing Business Vocational

College,

Chongqing, China

E-mail: peng.1122@foxmail.com

Abstract. The aim of this paper is to assess the impact of investment support on labour productivity in Lithuanian family farms. This issue is of particular importance when appraising whether the investment support has had the anticipated effects. Propensity score matching is employed to quantify the average treatment effect on the treated farms. The research is based on panel data from the Farm Accountancy Data Network covering the period of 2007–2012. The results show that Lithuanian farmers’ participation in investment measures did not result in labour productivity gains. These results provide guidance for policy makers with regards to decisions on investment support measures beyond 2020.

Received: October, 2018

1st Revision: December, 2018

Accepted: March, 2019

DOI: 10.14254/2071-789X.2019/12-1/21

JEL Classification: C21, Q12, Q18

Keywords: investment support, labour productivity, Lithuania, family farms, propensity score matching