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The growth of family farms in Hungary

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  • Lajos Zoltán Bakucs
  • Imre Fertő

Abstract

The article investigates the validity of Gibrat's Law for Hungarian family farms using FADN data collected between 2001 and 2007. Gibrat's Law states that the growth rate of firms will be independent of their initial size. Regression results allow us to reject Gibrat's Law for all quantiles. Evidence suggests that smaller farms tend to grow faster than larger ones. Results do not support the hypothesis of "disappearing middle" in Hungarian agriculture. We study a number of socio-economic factors that can help to explain farm growth. We find that total subsidies received by a farm and the farm operator's age are the most significant factors correlated with farm growth. Copyright (c) 2009 International Association of Agricultural Economists.

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Bibliographic Info

Article provided by International Association of Agricultural Economists in its journal Agricultural Economics.

Volume (Year): 40 (2009)
Issue (Month): s1 (November)
Pages: 789-795

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Handle: RePEc:bla:agecon:v:40:y:2009:i:s1:p:789-795

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Cited by:
  1. Kimhi, Ayal & Tzur, Nitzan, 2011. "Long-Run Trends in the Farm Size Distribution in Israel: The Role of Part-Time Farming," Discussion Papers 99217, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.

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