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Subsistence Agriculture in Transition Economies: Its Roles and Determinants

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  • Philip Kostov
  • John Lingard

Abstract

In line with recent suggestions about the potential positive effects of subsistence agriculture in fragile economies, this paper discusses and explains the effects of subsistence agriculture with emphasis on transition countries. Some micro-economic models of subsistence agriculture are reviewed and a two-stage decision model, combining risk aversion and transaction costs explanations for subsistence is put forward. The role of subsistence agriculture is addressed in terms of a static comparison to a commercial only agriculture. It is shown that, under some conditions, subsistence can play a stabilising role and have positive impacts on total agriculture. Employing the concept of a subsistence level of consumption, the paper demonstrates that these static effects can be valid in a dynamic perspective, provided additional conditions are met. Policy recommendations and a future research agenda with regard to possible agricultural commercialisation are drawn from the analysis.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Journal of Agricultural Economics.

Volume (Year): 55 (2004)
Issue (Month): 3 ()
Pages: 565-579

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Handle: RePEc:bla:jageco:v:55:y:2004:i:3:p:565-579

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  1. Dan Ben-David, 1997. "Convergence Clubs and Subsistence Economies," NBER Working Papers 6267, National Bureau of Economic Research, Inc.
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Cited by:
  1. Sauer, Johannes & Davidova, Sophia & Latruffe, Laure, 2009. "Determinants for fallowing land: The case of Kosovo," 2009 Conference, August 16-22, 2009, Beijing, China 51626, International Association of Agricultural Economists.
  2. Kostov, Philip & Lingard, John, 2005. "Disentangling the Social and Economic Dimensions of Agricultural Behaviour: What Role for Institutions and Social Capital?," 94th Seminar, April 9-10, 2005, Ashford, UK 24436, European Association of Agricultural Economists.
  3. Wolz, Axel & Fritzsch, Jana & Shterev, Nikolai & Buchenrieder, Gertrud & Paloma, Sergio Gomez y, 0. "Semi-Subsistence Farming, Farm Income and Social Capital in Bulgaria – Is there a Link?," Quarterly Journal of International Agriculture, Humboldt-Universität zu Berlin, vol. 49.
  4. Latruffe, Laure & Davidova, Sophia & Desjeux, Yann, 2007. "Market Imperfections and Subsistence Farming: The Case of Kosovo," 100th Seminar, June 21-23, 2007, Novi Sad, Serbia and Montenegro 162351, European Association of Agricultural Economists.
  5. Kan, Iddo & Kimhi, Ayal & Lerman, Zvi, 2006. "Farm Output, Non-Farm Income, and Commercialization in Rural Georgia," eJADE: electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization, Agricultural and Development Economics Division, vol. 3(2).
  6. Latruffe, Laure & Davidova, Sophia & Desjeux, Yann, 2008. "Perpetuation of subsistence farming in Western Balkans: the role of factor market imperfections," 82nd Annual Conference, March 31 - April 2, 2008, Royal Agricultural College, Cirencester, UK 36860, Agricultural Economics Society.
  7. G. Page West III & Charles E. Bamford & Jesse W. Marsden, 2008. "Contrasting Entrepreneurial Economic Developments in Less-Developed Latin American Markets: Applications and Extensions of Resource-Based Theory," Discussion Paper Series 2008-03, McColl School of Business, Queens University of Charlotte.
  8. Sauer, Johannes & Davidova, Sophia & Latruffe, Laure, 2009. "Determinants of the Fallowing Decision in Kosovo," 83rd Annual Conference, March 30-April 1, 2009, Dublin, Ireland 51072, Agricultural Economics Society.

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