Author(s): Tibor BAREITH – Arnold CSONKA

Title: DYNAMICS OF COMPETITION IN THE HUNGARIAN POULTRY INDUSTRY

Source: E. Korcsmáros (ed.): 12th International Conference of J. Selye University. Economics Section. Conference Proceedings

ISBN: 978-80-8122-375-4

DOI: https://doi.org/10.36007/3754.2020.57

Publisher: J. Selye University, Komárno, Slovakia

PY, pages: 2020, 57-71

Published on-line: 2020

Language: en

Abstract: This study examines the competitive nature of the Hungarian poultry sector between 2006 and 2016. Throughout the period examined the poultry population stagnated, however the industrial sector changed structurally and the livestock in individual farms decreased. Our main goal to measure the market competition and specify the main drivers of the abnormal profit in the Hungarian poultry industry. Profit persistence was estimated using the Arellano-Bond GMM and Blundell-Bond dynamic panel. Based on our results, it can be said that the level of profit of the poultry sector is close to the equilibrium profit level. It can be stated that the the farm size and technological development as well as the tax advantages of sole proprietorship distort competition and result in higher profits. Taking long-term risk has a negative impact on abnormal profits. Based on the model, it can be said that the breakthrough point in the poultry sector is technological advancement and population growth, along with the suppression of labor.

Keywords: profit persistence, competition, poultry sector, agriculture, dynamic panel

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