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Land Rental Markets and Household Farms in Transition: Theory and Evidence from Hungary

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  • Johan Swinnen
  • Liesbet Vranken

Abstract

This paper analyses the determinants of household farms?participation in land rental markets in transition countries and what affects their access to land through rental markets. We derive several theoretical hypotheses on the impact of households?management ability, land endowment, land quality and prices, transaction costs in the land market, rural credit and labour market constraints. We test the hypotheses combining a representative dataset on land rental activities of more than 1,400 Hungarian household farms with data from the Hungarian Central Statistical Office. We find that land rental markets reallocate land to households with better farm management capacities and less endowed with land. Households combine buying and renting of land to extend their farms. The continued domination of large farm organizations in some regions restricts household's access to land. Rural credit and labour market imperfections have an important impact on land rental markets.

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File URL: http://www.econ.kuleuven.be/licos/publications/dp/dp129.pdf
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Bibliographic Info

Paper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 12903.

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Length: 35 pages
Date of creation: 2003
Date of revision:
Handle: RePEc:lic:licosd:12903

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Cited by:
  1. Ciaian, Pavel & Swinnen, Johan F.M., 2005. "Market Imperfections and Agricultural Policy Effects on Structural Change and Competitiveness in an Enlarged EU," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24463, European Association of Agricultural Economists.
  2. Falkowski, Jan, 2005. "Key Determinants of Land Rentals in Poland," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24511, European Association of Agricultural Economists.
  3. Ciaian, Pavel & Swinnen, Johan F.M., 2008. "Credit Market Imperfections And The Distribution Of Policy Rents: The Common Agricultural Policy In The New Eu Member States," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6591, European Association of Agricultural Economists.
  4. Biro, Szabolcs, 2008. "The Hungarian land market after EU Accession," Studies in Agricultural Economics, Research Institute for Agricultural Economics, issue 107, March.

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