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Agricultural Production Organization in Transition Economies and the Role of Human Capital: Evidence from Romania

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  • Rizov, Marian

Abstract

This paper examines the production mode choices of rural households with an emphasis on the role of human capital in the agricultural transformation process. Farm restructuring in Central and Eastern Europe has resulted in a broad range of farm types, such as co-operatives, partnerships, individual farms and combinations of those. The fact that resources are allocated into different production organization modes is attributed to the utility maximization strategy of heterogeneous agents deriving income from uncertain sources in the face of absent or imperfect factor markets. Empirical results from a multinomial logit model estimated with data from two-year nation-wide survey of Romanian farm households support the hypothesis that the outcome of the transformation process depends primarily on both the human capital characteristics of and economic risks faced by the households.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 2002 International Congress, August 28-31, 2002, Zaragoza, Spain with number 24925.

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Date of creation: 2002
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Handle: RePEc:ags:eaae02:24925

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Keywords: human capital; production organization; agricultural transition; Romania; Production Economics;

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  1. Reid, Joseph D, Jr, 1976. " Sharecropping and Agricultural Uncertainty," Economic Development and Cultural Change, University of Chicago Press, vol. 24(3), pages 549-76, April.
  2. Feder, Gershon, 1985. "The relation between farm size and farm productivity : The role of family labor, supervision and credit constraints," Journal of Development Economics, Elsevier, vol. 18(2-3), pages 297-313, August.
  3. Higgs, Robert, 1973. "Race, Tenure, and Resource Allocation in Southern Agriculture, 1910," The Journal of Economic History, Cambridge University Press, vol. 33(01), pages 149-169, March.
  4. Marcel Fafchamps & Agnes R. Quisumbing, . "Human Capital, Productivity, and Labor Allocation in Rural Pakistan," Working Papers 97019, Stanford University, Department of Economics.
  5. Roumasset, J., 1995. "The nature of the agricultural firm," Journal of Economic Behavior & Organization, Elsevier, vol. 26(2), pages 161-177, March.
  6. Erik Mathijs & Johan F. M. Swinnen, 2001. "Production Organization And Efficiency During Transition: An Empirical Analysis Of East German Agriculture," The Review of Economics and Statistics, MIT Press, vol. 83(1), pages 100-107, February.
  7. William Hallagan, 1978. "Self-Selection by Contractual Choice and the Theory of Sharecropping," Bell Journal of Economics, The RAND Corporation, vol. 9(2), pages 344-354, Autumn.
  8. Jolliffe, Dean, 1997. "Whose education matters in the determination of household income," FCND discussion papers 39, International Food Policy Research Institute (IFPRI).
  9. Rao, C H Hanumantha, 1971. "Uncertainty, Entrepreneurship, and Sharecropping in India," Journal of Political Economy, University of Chicago Press, vol. 79(3), pages 578-95, May-June.
  10. James Roumasset & Marilou Uy, 1987. "Agency Costs and the Agricultural Firm," Land Economics, University of Wisconsin Press, vol. 63(3), pages 290-302.
  11. Rizov, Marian & Gavrilescu, Dinu & Gow, Hamish & Mathijs, Erik & Swinnen, Johan F. M., 2001. "Transition and Enterprise Restructuring: The Development of Individual Farming in Romania," World Development, Elsevier, vol. 29(7), pages 1257-1274, July.
  12. Mathijs, Erik & Swinnen, Johan F M, 1998. "The Economics of Agricultural Decollectivization in East Central Europe and the Former Soviet Union," Economic Development and Cultural Change, University of Chicago Press, vol. 47(1), pages 1-26, October.
  13. Allen, Douglas W & Lueck, Dean, 1998. "The Nature of the Farm," Journal of Law and Economics, University of Chicago Press, vol. 41(2), pages 343-86, October.
  14. W. Bruce Wydick, 1999. "Credit access, human capital and class structure mobility," Journal of Development Studies, Taylor & Francis Journals, vol. 35(6), pages 131-152.
  15. Akerlof, George A, 1970. "The Market for 'Lemons': Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, MIT Press, vol. 84(3), pages 488-500, August.
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