Analysis of Unequal Distribution of Gross Value Added in plant Production Business

  • Zdeňka Malá Czech University of Life Sciences Prague
  • Gabriela Trnková Czech University of Life Sciences Prague
Keywords: Plant production, gross farm income, subsidies, value added, inequality, Gini coefficient, Decomposition, Econometric model


The aim of this paper is the evaluation of gross value added inequality in the field production businesses, including the definition of determinants that cause or eliminate the mentioned inequality. The fulfillment of this aim is based on the quantification and decomposition of the Gini coefficient and on quantification of random effects model. Panel data for the analysis were gained from the Creditinfo database and the State Agricultural Intervention Fund and represent the economic results of 140 field production companies from 2005-2010. Results of the paper document the inequality of gross value added, which is generated mainly by the differences in farm size and by different natural conditions, in which the firm farms. The inequality is eliminated mainly by income subsidies. Agri-environmental subsidies also eliminate the inequality but in less extent.