Assessing the Effect of Monetary Policy on the Competitiveness of Agricultural Enterprises

Robert Kozelský

Panevropská Univerzita, Spálená 76/14, Prague 110 00, Czech Republic

Mansoor Maitah

Czech University of Life Sciences Prague, Kamýcká 129, 16500 Praha-Suchdol, Czech Republic

Eva Daniela Cvik

Czech University of Life Sciences Prague, Kamýcká 129, 16500 Praha-Suchdol, Czech Republic

Daniel Toth

Panevropská Univerzita, Spálená 76/14, Prague 110 00, Czech Republic

Emil Flegel

Univerzity of Finance and Administartion, Estonská 500, 10100 Praha 10-Vršovice, Czech Republic

Ali Sindi

University of Applied Sciences Burgenland, Campus 1, 7000 Eisenstadt, Austria

Ondřej Zelenka

Panevropská Univerzita, Spálená 76/14, Prague 110 00, Czech Republic


Received: 11 April 2024; Received in revised form: 16 May 2024; Accepted: 22 May 2024; Published: 17 June 2024

Copyright © 2024 Robert Kozelský, Mansoor Maitah, Eva Daniela Cvik, Daniel Toth, Emil Flegel, Ali Sindi, Ondřej Zelenka. Published by Nan Yang Academy of Sciences Pte. Ltd.

Creative Commons LicenseThis is an open access article under the Creative Commons Attribution-NonCommercial 4.0 International (CC BY-NC 4.0) License.


There are many scientific works the effects of monetary policy on the competitiveness of enterprises. However, no research has yet been conducted on agricultural enterprises. Therefore, the aim of this article is to indicate the effects of monetary policy on the competitiveness of agricultural enterprises. Regression analysis is a suitable econometric method to determine the strength of the effects of monetary policy on competitiveness. In our model, a multiple regression method was used, where interest rates, inflation and exchange rate were defined as exogenous (independent) variables, while revenues of agricultural enterprises were defined as an endogenous (dependent) variable. The findings reveal that the monetary policy significantly affects agricultural competitiveness. Specifically, higher interest rates are shown to have a negative impact on the performance of agricultural enterprises. Economic theory states that higher interest rates have a negative impact on competitiveness, and the results of calculations show that interest rates do have a dominant impact on the agricultural enterprise performance. Monetary policymakers, especially the central bank, should focus on keeping interest rates low in order to increase the availability of operating and investment capital. A market environment with low interest rates could stimulate the introduction of innovations, the implementation of new technologies and the development of robotization in agricultural enterprises. Lower financing costs due to low interest rates could boost business activities and economic growth, which could have a positive impact on the competitiveness of agricultural businesses. The conclusions of our research confirm that in the Czech Republic monetary policy remains a key tool for supporting the development of agricultural enterprises and their competitiveness.

Keywords: Interest rate; Monetary policy; Inflation; Exchange rate; Revenues; Competitiveness; Agricultural enterprises


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