Pull and push: individual farming in Hungary

Rizov, Marian (2005) Pull and push: individual farming in Hungary. Food Policy, 30 (1). pp. 43-62. ISSN 0306-9192

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This paper is motivated by the fact that (part-time) individual farming is commonly observed among rural households in a number of transition economies but it is not clear prima facie if such resource allocation is optimal. A conceptual model of household labor allocation between individual farming and off-farm wage employment is developed. The model explicitly accounts for the role of household endowments in labor allocation as the analysis is conditioned on the status of factor markets. The hypotheses are empirically tested using 1998 data from a country-representative survey of rural households in Hungary, an advanced transition country, which only recently became EU member state. Results provide evidence that capital market imperfections still remain. Implications for the policies related to agricultural sector restructuring, employment and rural development are discussed.

Keywords:Labor allocation, Diversification, Transition economies, Households, Individual farming
Subjects:L Social studies > L100 Economics
Divisions:Lincoln International Business School
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ID Code:18749
Deposited On:21 Sep 2015 09:36

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