Investment of Slovenian farms in the transition context

JEL: Q12, Q14This paper investigates the investment decisions of Slovenian farms during the transition and adjustment period to European Union (EU) membership and in particular whether these decisions were constrained by financing availability. Results from a standard and an augmented accelerator models indicate that farms’ investment decisions was based on market opportunities during the period 1994-2003, but that the decisions were constrained by financing availability