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

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Author Info
Johan Swinnen
Liesbet Vranken

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

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

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Find related papers by JEL classification:
Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation
D10 - Microeconomics - - Household Behavior - - - General
P23 - Economic Systems - - Socialist Systems and Transition Economies - - - Factor and Product Markets; Industry Studies; Population

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Lerman, Zvi & Csaki, Csaba & Feder, Gershon, 2002. "Land policies and evolving farm structures in transition countries," Policy Research Working Paper Series 2794, The World Bank. [Downloadable!]
  2. 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.
  3. Deininger, Klaus & Feder, Gershon, 1998. "Land institutions and land markets," Policy Research Working Paper Series 2014, The World Bank. [Downloadable!]
    Other versions:
  4. Lerman, Zvi, 2001. "Agriculture in transition economies: from common heritage to divergence," Agricultural Economics, Blackwell, vol. 26(2), pages 95-114, November. [Downloadable!] (restricted)
  5. Swinnen, Johan F. M., 2002. "Political reforms, rural crises, and land tenure in western Europe," Food Policy, Elsevier, vol. 27(4), pages 371-394, August. [Downloadable!] (restricted)
  6. Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-44, June. [Downloadable!] (restricted)
  7. Yang Yao, 2000. "The Development of the Land Lease Market in Rural China," Land Economics, University of Wisconsin Press, vol. 76(2), pages 252-266. [Downloadable!] (restricted)
  8. Deininger, Klaus & Songqing Jin, 2003. "Land sales and rental markets in transition - evidence from rural Viet Nam," Policy Research Working Paper Series 3013, The World Bank. [Downloadable!]
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  9. Swinnen, Johan F. M. & Gow, Hamish R., 1999. "Agricultural credit problems and policies during the transition to a market economy in Central and Eastern Europe," Food Policy, Elsevier, vol. 24(1), pages 21-47, February. [Downloadable!] (restricted)
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  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. [Downloadable!]
  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. [Downloadable!]
  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. [Downloadable!]
    Other versions:
  4. Biro, Szabolcs, 2008. "The Hungarian land market after EU Accession," Studies in Agricultural Economics, Research Institute for Agricultural Economics, issue 107, March. [Downloadable!]
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