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Impediments to Employment and Enterprise Diversification: Evidence from Small-Scale Farms in Poland

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  • Chaplin, Hannah
  • Davidova, Sophia
  • Gorton, Matthew

Abstract

In an environment of low returns to agricultural activities and slow structural change, both employment and enterprise diversification have been presented as possible strategies for raising the incomes of farm households. This paper focuses on the barriers to taking up off-farm employment and establishing new non-agricultural enterprises. Factor and cluster analysis are applied to a data-set of individual farms in Poland in order to identify groups of households facing similar constraints and profile policy measures that are most likely to assist diversification. The majority of non-diversifiers are unlikely to become pluriactive in the near future due to a combination of age, a desire to concentrate on farming and remoteness. Farm households that are willing to diversify are characterised by the lowest agricultural incomes. For these households, a poor endowment of human and physical capital is a major constraint.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark with number 24760.

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Date of creation: 2005
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Handle: RePEc:ags:eaae05:24760

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Keywords: Poland; diversification; off-farm employment; non-agricultural enterprises; cluster analysis; Industrial Organization; Labor and Human Capital; R0; Q12;

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  1. Matthew Gorton & Alina Daniłowska & Sławomir Jarka & Sławomir Straszewski & Aldona Zawojska & Edward Majewski, 2001. "The International Competitiveness of Polish Agriculture," Post-Communist Economies, Taylor & Francis Journals, vol. 13(4), pages 445-457.
  2. Darla Munroe, 2001. "Economic Efficiency in Polish Peasant Farming: An International Perspective," Regional Studies, Taylor & Francis Journals, vol. 35(5), pages 461-471.
  3. Ellis, Frank, 2000. "Rural Livelihoods and Diversity in Developing Countries," OUP Catalogue, Oxford University Press, number 9780198296966.
  4. R. W. Fraser, 1990. "Producer Risk, Product Complementarity And Product Diversification," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(1), pages 103-107.
  5. Chaplin, Hannah & Davidova, Sophia & Gorton, Matthew, 2002. "Non-Agricultural Diversification of Farm Households and Corporate Farms in Central Europe," Workshop on the Farm Household-Firm Unit: Its Importance in Agriculture and Implications for Statistics, April 12-13, 2002, Wye Campus,Imperial College 15728, International Agricultural Policy Reform and Adjustment Project (IAPRAP).
  6. Chaplin, Hannah & Davidova, Sophia & Gorton, Matthew, 2003. "Agricultural Adjustment And The Diversification Of Farm Households In Central Europe," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25843, International Association of Agricultural Economists.
  7. 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.
  8. Lanjouw, Peter, 1999. "Rural Nonagricultural Employment and Poverty in Ecuador," Economic Development and Cultural Change, University of Chicago Press, vol. 48(1), pages 91-122, October.
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Cited by:
  1. Falkowski, Jan & Jakubowski, Maciej & Strawinski, Pawel, 2013. "Returns from Income Strategies in Rural Poland," Factor Markets Working Papers 178, Centre for European Policy Studies.
  2. Gramzow, Andreas, 2009. "Rural development as provision of local public goods: Theory and evidence from Poland," Studies on the Agricultural and Food Sector in Central and Eastern Europe, Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO), volume 51, number 92313.
  3. Heidelbach, Olaf, 2007. "Efficiency of selected risk management instruments: An empirical analysis of risk reduction in Kazakhstani crop production," Studies on the Agricultural and Food Sector in Central and Eastern Europe, Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO), volume 40, number 92323.

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