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Farm Survival and Growth in Transition Economies: Theory and Empirical Evidence from Hungary

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Author Info

  • Marian Rizov
  • Erik Mathijs

Abstract

Our conceptual model states that new individual farms may begin at a small, even sub-optimal, scale of production and then those farms that are successful will survive and grow, whereas those that are not will remain small and may ultimately be forced to exit from production. The samples of individual farms analysed throughout this article are drawn from the 1998 Farm Survey in Hungary. Our estimation results show that older and larger farms are more likely to survive, farm growth decreases with farm age when farm size is held constant and that learning considerations are important. Beside these standard results, in transition economies farmers', market and industry characteristics have a significant impact on the survival and growth rates of individual farm enterprises.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Post-Communist Economies.

Volume (Year): 15 (2003)
Issue (Month): 2 ()
Pages: 227-242

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Handle: RePEc:taf:pocoec:v:15:y:2003:i:2:p:227-242

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Cited by:
  1. Van Herck, Kristine, 2011. "Where have all the farmers gone? EU Accession and Structural Change in Bulgaria," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114829, European Association of Agricultural Economists.
  2. Kimhi, Ayal & Tzur, Nitzan, 2011. "Long-Run Trends in the Farm Size Distribution in Israel: The Role of Part-Time Farming," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114759, European Association of Agricultural Economists.
  3. Sporri, Martina & Barath, Lajos & Bokusheva, Raushan & Ferto, Imre, 2012. "The Impact of Crop Insurance on the Economic Performance of Hungarian Cropping Farms," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122525, European Association of Agricultural Economists.
  4. Dolev, Yuval & Kimhi, Ayal, 2010. "Do family farms really converge to a uniform size? The role of unobserved farm efficiency," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(1), March.
  5. Dolev, Yuval & Kimhi, Ayal, 2008. "Does Farm Size Really Converge? The Role of Unobserved Farm Efficiency," Discussion Papers 45778, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
  6. Gardner, Bruce L. & Lerman, Zvi, 2006. "Agricultural Cooperative Enterprise in the Transition from Socialist Collective Farming," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 34(1).
  7. Fertő, Imre & Bakucs, Lajos Zoltán, 2008. "Érvényes-e a Gibrat-törvény a magyar mezőgazdaságban?
    [Is Gibrat s law valid for Hungarian agriculture?]
    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 25-38.
  8. Rizov, Marian, 2005. "Pull and push: individual farming in Hungary," Food Policy, Elsevier, vol. 30(1), pages 43-62, February.
  9. Rizov, Marian, 2003. "Endogenous production organization during market liberalization: farm level evidence from Romania," Economic Systems, Elsevier, vol. 27(2), pages 171-187, June.
  10. Petrovici, D.A. & Gorton, M., 2005. "An evaluation of the importance of subsistence food production for assessments of poverty and policy targeting: Evidence from Romania," Food Policy, Elsevier, vol. 30(2), pages 205-223, April.

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