The Role of Banks in Financing the Slovak Agricultural Sector

Adriana NovotnáKristína Kočišová

DOI 10.7160/aol.2022.140107
No 1/2022, March
pp. 81-94

Novotná, A. and Kočišová, K. (2022) "The Role of Banks in Financing the Slovak Agricultural Sector", AGRIS on-line Papers in Economics and Informatics, Vol. 14, No. 1, pp. 81-94. ISSN 1804-1930. DOI 10.7160/aol.2022.140107.

Abstract

A well-developed financial system plays an important role in financing individual sectors in the country. In this paper, we analyse credit development in the agricultural sector in the Slovak Republic from various perspectives. We examine the relationship between the agricultural sector's characteristics and the volume of funding at the regional level. The paper's methodology is based on a k-means algorithm for clustering the Slovak regions with four criteria. Then we examine the relationship between financial development and agricultural growth by employing the Cobb-Douglas production function. This study uses annual data covering the period from 2008 to 2019. The results reveal that financial development has a significant and positive effect on agricultural production and agricultural growth.

Keywords

Slovak agricultural sector, financial development, agriculture growth, cluster analysis, data analysis.

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