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The Relationship of Investments and Subsidies to Labour Productivity in Agriculture in Poland between 2010 and 2015

Following the microeconomic producer theory as a framework, this paper studies the empirical relationship between investments and subsidies from the CAP and labour productivity on farms, thus also on whole agriculture sector. It refers to labour productivity as the basis of producers’ income and the investments affecting the capital endowment as a major source of productivity improvement. The aim of the article is to present analytical and empirical evidence of the positive relationship to labour productivity of the growth of investments as well as subsidies on investments. The multifactor ANOVA models with interactions are used as an applied research tool to assess the differences in labour productivity, for example by investments and subsidies on investments. The results obtained indirectly suggest that agricultural producers behave rationally as far as the relationship between investment and labour productivity is concerned.