Survival and Growth of Family Farms in a Transition Country – The Hungarian Case
AbstractThe paper investigates the validity of Gibrat’s Law in Hungarian agriculture. We use FADN data between 2001 and 2007 and employ quantile regression techniques to test the validity of Gibrat’s Law across quantiles. The Law is strongly rejected for all quantiles, providing strong evidence that smaller farms tend to grow faster than larger ones. We provide a number of socio-economic factors that can explain farm growth. Of these we found that total subsidies received by farm and far operator’s age are the most significant factors.
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Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 111th Seminar, June 26-27, 2009, Canterbury, UK with number 52846.
Date of creation: 20 Aug 2009
Date of revision:
Gibrat’s Law; family farm; quantile regression; transition agriculture; Community/Rural/Urban Development; Consumer/Household Economics; P32; Q12; Q19;
Find related papers by JEL classification:
- P32 - Economic Systems - - Socialist Institutions and Their Transitions - - - Collectives; Communes; Agricultural Institutions
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
- Q19 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Other
This paper has been announced in the following NEP Reports:
- NEP-AGR-2009-09-19 (Agricultural Economics)
- NEP-ALL-2009-09-19 (All new papers)
- NEP-TRA-2009-09-19 (Transition Economics)
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