No 3/2019, September

Analysis of Selected Profitability Ratios in the Agricultural Sector


The paper deals with the analysis of selected profitability indicators of Czech agricultural businesses of legal entities and their subcomponents, based on DuPont analysis. The effect of asset turnover ratio, net profit margin ratio and equity multiplier on the value of return on equity (ROE) and return on assets (ROA) is studied in relation to the legal form and size group. The analysis of the effect of sub-indicators is performed by way of a correlation analysis. Furthermore, the assumption about the influence of sub-components indicators on synthetic profitability ratios is verified. The panel data set we used was obtained from the Amadeus database. The analytical section is based upon accounting statements of agricultural businesses of legal entities in the Czech Republic within the period of 2011 – 2015. The analysis is based on the calculated values of ROA and ROE, including partial values of the sub-components indicator, by using DuPont analysis. The differences between the groups of businesses are tested through correlation analysis and subsequently evaluated with respect to the specifics of each group. The object of examination was more than 3000 companies annually, on average. The evaluated companies were divided, in terms of legal form, into joint-stock companies, cooperatives and limited liability companies, and in terms of size structure into small, medium and large businesses.

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The Position of Agriculture and Food Sector in V4 Countries


Input-output tables are a simple tool, used for studying the structure of economies or sectors’ demand and supply linkages. The aim of this paper is to present and compare the main characteristics of 2 selected sectors in V4 countries, namely the agriculture and food sectors. The analysis is based on the input output coefficients and multipliers, used for studying input, output and import relationships. These analyses can reveal ongoing structural changes what represents an interesting topic especially for former transition economies. The objective is to verify the similarities in the position and the development of these sectors, to examine backward and forward linkages and their strength in order to identify key sectors and to measure possible concentrations of their impacts. With accordance to the previous research and general trends, we expected certain decline of importance over the period 2000-2014, especially in terms of production, employment but also in overall effects on the whole economy. This was mostly confirmed with the exception of Polish data that point out to relatively stronger domestic position of both sectors. The presented results were obtained within the Research Project VEGA/1/0961/16

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Does Agriculture Matter for Environmental Kuznets Curve in Russia: Evidence from the ARDL Bounds Tests Approach


This study explores the relationship between carbon dioxide emissions and their main determinants, which include real income and energy consumption in Russia, employing data for the period 1990-2016. The hypothesis of agriculture being an important determinant of environmental quality in Russia is also tested. For estimating the short-run and long-run relationships the ARDL bounds test approach is employed in this study. The results are consistent with the Environmental Kuznets Curve (EKC) hypothesis and show that the real income and energy consumption have a statistically significant positive impact on the carbon emission and its square has a significant negative effect on the carbon emissions both in the short-run and long-run. Agricultural sector is found to be a relatively important statistically significant determinant of carbon emission in Russia as well. The pairwise Granger causality test also reveals unidirectional causality running from agriculture to the carbon emissions.

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Factors Affecting Food Purchases in Vysočina Region with Focus on Regional Food


The article presents the results of a research study that analyses chosen factors that affect food purchases in Vysočina Region with focus on a regional food. The quantitative research, conducted in 2015 in each district of Vysočina Region (Jihlava, Žďár nad Sázavou, Třebíč, Havlíčkův Brod and Pelhřimov), analysed the opinions of 819 respondents. They were selected by quota sampling methods according to gender. Data have been processed with correspondence analysis; the results show that brand and price are significant factors that influence consumers in Vysočina Region when they buy food, the labels on the food packaging do not seem to be a strong signal of quality. Statistical tests based on contingency tables proved that regional food is strongly preferred by women and consumers over 65 years old

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Horizontal Price Transmission on the Russian Dairy Market: Nonlinear Approach


Spatial (horizontal) price transmission analysis provides specific evidence as to the competitiveness of markets, the effectiveness of arbitrage and the pricing efficiency. The paper investigates spatial price transmission and market integration in the Russian Federal Districts using monthly milk prices within the period 2000-2018. Using Hansen-Seo technique, threshold effects have been found and threshold vector error correction model with two regimes has been estimated for three markets. Market integration analysis revealed a long-run relationship for all the price pairs in the milk markets. The linear VECM analysis showed a rather low degree of integration, especially for the Southern Federal District milk market. Compared to VECM, the TVECM estimation provided different findings depending on regimes and markets.

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Economic Impact of Food Loss and Waste


Research background: The unproductive use of natural resources such as land and water, resulting from food loss and waste, constrains the pursuit of such tasks as overcoming hunger and poverty, ensuring adequate nutrition, increasing income and economic growth. Purpose of the article: According to the results of empirical research to identify the level of economic damage and lost revenue as a result of the food loss and waste, as well as to identify potential benefits for the agricultural land use in reducing those losses. Methods: The analysis was conducted in terms of regions and product types. The methodology proposed by FAO is used to calculate the food loss and waste for each type of product in Ukraine. Findings & Value added: Firstly, it has been empirically proven that food loss and waste result in significant economic damage and lost revenue. Secondly, the reduction of food loss and waste has positive environmental and social consequences.

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Application of Exponential Smoothing Models and Arima Models in Time Series Analysis from Telco Area


The use of ICT has been steadily increasing in both business and social life. Apparently, the most essential communication technology today is a mobile phone. However, the use of mobile phones also has its downside, which is their impact on the environment, which is not negligible. Despite the negative impact on the environment, few of us can imagine a life without a mobile phone. The mobile telecommunications market is one of the most important sectors of the modern economy. Analysing past developments - as well as predicting future developments - of indicators in this area plays a very important role in decision making, as in any other area of the national economy. The extrapolation methods have been the most often applied methods in the area of time series analysis and forecasting in practice. Currently, the combined methods in time series forecasting is more and more favoured. The main aim of this paper is an examination of applicability of the Box-Jenkins methodology models and the exponential smoothing models for providing extrapolation forecasts, but for past development modelling of selected indicators from the telecom area, too. Information on the indicators under study was collected on monthly and daily basis. Quality of the models selected was then assessed using the MAPE and AIC metric. In conclusion, a comparative analysis was performed of both the groups of models. The best individual models were further aggregated and quality of these was assessed using the same assessment criteria. SAS statistical system was applied for effective implementation of the analysis. The research has demonstrated that the exponential smoothing models can only be recommended for the analysis of indicators under study from the mobile telecom area. The detailed analysis has proved, anyway, a higher level of success with the combined models.

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Digital Divide of Rural Territories in Russia


Information and communication (ICT) technologies cause profound changes in social and economic phenomena. The initial stage of their diffusion is accompanied by complex and contradictory effects. One of these effects is the growing inequality in access to information and the newest technological achievements. The digital divide leaves vast social groups outside the progressive mainstream. Studies show that agribusiness and rural territories most severely suffer from digital discrimination. It consequently results in declining profitability and competitiveness of the agrarian sector and, furthermore, a growing gap between the quality of urban and rural life. To control the negative process, the primary task is to obtain a clear notion of the current tendencies. The study describes a qualitative method of analysis that can be used to measure the digital divide in rural territories.

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The Impact of Debt Funding Sources on Liquidity of Companies in Food Industry


The aim of this article is to determine the impact of debt funding sources structure on liquidity of companies in food industry in the Czech Republic from 2006 to 2016. With the purpose to fulfill the aim, we examine existence and character of relationship between the debt funding sources structure (long-term loans, short-term loans, other long-term liabilities, other short-term liabilities, debt equity ratio) and liquidity of the companies (cash ratio, quick ratio and current ratio) in food industry in the Czech Republic. The relationship between debt funding sources structure and liquidity of companies is tested through correlation analysis, Granger causality test and generalized method of moments (GMM). The liquidity of companies was positively influenced by the long-term loans in companies (cash ratio and quick ratio) in food industry in the Czech Republic. The results also indicate that there is the negative impact of other current liabilities on liquidity of companies (cash ratio, quick ratio and current liquidity) in food industry in the Czech Republic.

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Indicators’ Dynamics of Irrigated Agriculture by Federal Districts of Russia


Currently, up to 80% of agricultural land needs watering in the Russian Federation. Therefore, the state of irrigated agriculture affects the efficiency and effectiveness of the country's food sector. The subject of this article is the studying of the basic indicators’ dynamics of irrigated agriculture (total irrigated area, its condition: good, satisfactory and unsatisfactory, costs per hectare of irrigated area and actually watered area) and their interrelations in all federal districts of the Russian Federation for 2013-2016. Methods of economic and statistical analysis were used in the work, in particular, analysis of the time series, correlation and cluster analyses. As a result of the studying, it was established that the state and development of irrigated agriculture in the Russian Federation is unstable and cannot be regulated solely by climatic factors.

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