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Farm Output, Non-Farm Income, And Commercialization In Rural Georgia

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  • Kan, Iddo
  • Kimhi, Ayal
  • Lerman, Zvi

Abstract

This article examines the decision of farmers to sell part of their farm output on the market, using data from the Republic of Georgia. A two-level empirical model is used, in which endowments and resource allocation decisions determine farm output and non-farm income, and these in turn determine market participation. We found, as expected, that farm output affects market participation positively, while non-farm income affects it negatively. Landholdings have an indirect positive effect on market participation, through its positive effect on farm output. Education has a negative effect on market participation, mainly through its positive effect on non-farm income.

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Bibliographic Info

Paper provided by Hebrew University of Jerusalem, Department of Agricultural Economics and Management in its series Discussion Papers with number 7179.

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Date of creation: 2006
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Handle: RePEc:ags:huaedp:7179

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Postal: Faculty of Agriculture, Food and Environmental Quality Sciences Hebrew University of Jerusalem, P.O. Box 12, Rehovot 76100
Phone: 08-9481230
Fax: 08-9466267
Web page: http://departments.agri.huji.ac.il/economics/indexe.html
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Related research

Keywords: commercialization; market participation; farm output; non-farm income; resource allocation; Farm Management; O12; P23; P25;

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References

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  1. Erik Mathijs & Nivelin Noev, 2004. "Subsistence Farming in Central and Eastern Europe : Empirical Evidence from Albania, Bulgaria, Hungary, and Romania," Eastern European Economics, M.E. Sharpe, Inc., vol. 42(6), pages 72-89, November.
  2. Marc F. Bellemare & Christopher B. Barrett, 2006. "An Ordered Tobit Model of Market Participation: Evidence from Kenya and Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 324-337.
  3. Lerman, Zvi, 2005. "The Impact Of Land Reform On Rural Household Income In Transcaucasia And Central Asia," Discussion Papers 7169, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
  4. Renkow, Mitch & Hallstrom, Daniel G. & Karanja, Daniel D., 2004. "Rural infrastructure, transactions costs and market participation in Kenya," Journal of Development Economics, Elsevier, vol. 73(1), pages 349-367, February.
  5. Gogodze, Joseph & Kan, Iddo & Kimhi, Ayal, 2005. "Development of Individual Farming in Georgia: Descriptive Analysis and Comparisons," MPRA Paper 11721, University Library of Munich, Germany.
  6. Nigel Key & Elisabeth Sadoulet & Alain De Janvry, 2000. "Transactions Costs and Agricultural Household Supply Response," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 245-259.
  7. Philip Kostov & John Lingard, 2004. "Subsistence Agriculture in Transition Economies: Its Roles and Determinants," Journal of Agricultural Economics, Wiley Blackwell, vol. 55(3), pages 565-579.
  8. Borbala Balint & Peter Wobst, 2006. "Institutional Factors and Market Participation by Individual Farmers: The Case of Romania," Post-Communist Economies, Taylor & Francis Journals, vol. 18(1), pages 101-121.
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Citations

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Cited by:
  1. Kimhi, Ayal, 2007. "Does Land Reform In Transition Countries Increase Child Labor? Evidence From The Republic Of Georgia," Discussion Papers 7147, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
  2. Olale, Edward & Cranfield, John A.L., 2009. "The Role of Income Diversification, Transaction Cost and Production Risk in Fertilizer Market Participation," 2009 Conference, August 16-22, 2009, Beijing, China 49929, International Association of Agricultural Economists.
  3. Gogodze, Joseph & Kan, Iddo & Kimhi, Ayal, 2007. "Land Reform And Rural Well Being In The Republic Of Georgia: 1996-2003," Discussion Papers 7168, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.

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