Portuguese farming firms’ growth: Do human capital and managerial capabilities matter?

Abstract

This paper examines the underlying factors that might shape firm’s growth in the farming sector. In particular, we investigate the effects of human capital and managerial capabilities on growth of Portuguese farming firms during 2003-2007. Relying on econometric models that control for survivorship bias, the results indicate that younger and top-educated employees are likely to foster farming firm’s growth. On the other hand, the effect of managerial capabilities appears to be somewhat weak on firms without separation between ownership and management. The flexibility to hire specialised and multidisciplinary management teams with managerial capabilities appears to yield economic payoffs on the farming sector.