Income Diversity in Rural Lithuania: Benefits, Barriers, and Incentives
AbstractEconomic hardship, agricultural policy reform and price developments have adversely affected incomes from agricultural production in Lithuania, and many farm households have accessed additional sources of income in the rural economy. In an analysis of recently collected survey data we find that non-farm wage employment particularly benefits poorer household, whereas non-agricultural enterprises are more common among higher-income farm households. Such enterprises diminish transaction problems typical for transition economies, allow households to capture more value added than in agricultural production, and create jobs in the local economy. Non-agricultural enterprises are more likely to be found with larger households and in more remote areas. Non-agricultural employment are more important income components for households that have more dependant members, are located in remoter areas, and have less access to economic institutions. We discuss the implications of these findings for the role of rural income diversity in economic regeneration.
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Bibliographic InfoPaper provided by EconWPA in its series Development and Comp Systems with number 0304004.
Length: 22 pages
Date of creation: 14 Apr 2003
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transition; Lithuania; rural economy; incomes; survey data;
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
- R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-04-21 (All new papers)
- NEP-DEV-2003-04-21 (Development)
- NEP-EEC-2003-04-21 (European Economics)
- NEP-GEO-2003-04-21 (Economic Geography)
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