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Subsistence Agriculture in Transition Economies: its Roles and Determinants

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Author Info
Philip Kostov (Queen's Univeristy Belfast)
John Lingard (University of Newcastle)

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Abstract

In line with recent suggestions about the potential positive effects of subsistence agriculture in fragile economies, this paper discusses and explains the effects of subsistence agriculture with emphasis on transition countries. Some micro-economic models of subsistence agriculture are reviewed and a two-stage decision model, combining risk aversion and transaction costs explanations for subsistence is put forward. The role of subsistence agriculture is addressed in terms of a static comparison to a commercial only agriculture. It is shown that, under some conditions, subsistence can play a stabilising role and have positive impacts on total agriculture. Employing the concept of a subsistence level of consumption, the paper demonstrates that these static effects can be valid in a dynamic perspective, provided additional conditions are met. Policy recommendations and a future research agenda with regard to possible agricultural commercialisation are drawn from the analysis.

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Paper provided by EconWPA in its series Others with number 0410004.

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Length: 33 pages
Date of creation: 04 Oct 2004
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Handle: RePEc:wpa:wuwpot:0410004

Note: Type of Document - pdf; pages: 33
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Find related papers by JEL classification:
P - Economic Systems
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
Z - Other Special Topics

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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. Philip Kostov, 2004. "Transition, agricultural decommercialisation, and their implications for quantitative modelling," Others 0409008, EconWPA. [Downloadable!]
  2. Sarris, Alexander H & Doucha, Tomas & Mathijs, Erik, 1999. "Agricultural Restructuring in Central and Eastern Europe: Implications for Competitiveness and Rural Development," European Review of Agricultural Economics, Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 26(3), pages 305-29, August.
  3. Dehez, Pierre & Dreze, Jacques, 1988. "Competitive equilibria with quantity-taking producers and increasing returns to scale," Journal of Mathematical Economics, Elsevier, vol. 17(2-3), pages 209-230, April. [Downloadable!] (restricted)
  4. Adam Ozanne, 1999. "Perverse supply response in peasant agriculture: A review," Oxford Development Studies, Taylor and Francis Journals, vol. 27(2), pages 251-270. [Downloadable!] (restricted)
  5. Key, Nigel & Sadoulet, Elisabeth & de Janvry, Alain, 2000. " Transactions Costs and Agricultural Household Supply Response," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 82(2), pages 245-59, May. [Downloadable!] (restricted)
  6. Brown, Donald J & Heal, Geoffrey, 1979. "Equity, Efficiency, and Increasing Returns," Review of Economic Studies, Blackwell Publishing, vol. 46(4), pages 571-85, October. [Downloadable!] (restricted)
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  7. Hans P. Binswanger, 1980. "Attitudes Toward Risk: Experimental Measurement in Rural India," Artefactual Field Experiments 0008, The Field Experiments Website. [Downloadable!]
  8. Ben-David, Dan, 1998. "Convergence clubs and subsistence economies," Journal of Development Economics, Elsevier, vol. 55(1), pages 155-171, February. [Downloadable!] (restricted)
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  9. Sharif, Mohammed, 1986. "The Concept and measurement of subsistence: A survey of the literature," World Development, Elsevier, vol. 14(5), pages 555-577, May. [Downloadable!] (restricted)
  10. Paul Caskie, 2000. "Back to Basics: Household Food Production in Russia," Journal of Agricultural Economics, Blackwell Publishing, vol. 51(2), pages 196-209. [Downloadable!] (restricted)
  11. Aaron S. Edlin & Mario Epelbaum & Walter P. Heller, 1995. "Is Perfect Price Discrimination Really Efficient? Welfare and Existence in General Equilibrium," University of California at San Diego, Economics Working Paper Series 95-32, Department of Economics, UC San Diego.
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  12. Plamen Mishev & Philip Kostov, 2004. "Decision making pattern of subsistence farmers in Bulgaria," Others 0409012, EconWPA. [Downloadable!]
  13. Seeth, Harm Tho & Chachnov, Sergei & Surinov, Alexander & Von Braun, Joachim, 1998. "Russian poverty: Muddling through economic transition with garden plots," World Development, Elsevier, vol. 26(9), pages 1611-1624, September. [Downloadable!] (restricted)
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(explanations, 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. G. Page West III & Charles E. Bamford & Jesse W. Marsden, 2008. "Contrasting Entrepreneurial Economic Developments in Less-Developed Latin American Markets: Applications and Extensions of Resource-Based Theory," Discussion Paper Series 2008-03, McColl School of Business, Queens University of Charlotte. [Downloadable!]
  2. Latruffe, Laure & Davidova, Sophia & Desjeux, Yann, 2008. "Perpetuation of subsistence farming in Western Balkans: the role of factor market imperfections," 82nd Annual Conference, March 31 - April 2, 2008, Royal Agricultural College, Cirencester, UK 36860, Agricultural Economics Society. [Downloadable!]
  3. Kostov, Philip & Lingard, John, 2005. "Disentangling the Social and Economic Dimensions of Agricultural Behaviour: What Role for Institutions and Social Capital?," 94th Seminar, April 9-10, 2005, Ashford, UK 24436, European Association of Agricultural Economists. [Downloadable!]
  4. Kan, Iddo & Kimhi, Ayal & Lerman, Zvi, 2006. "Farm Output, Non-Farm Income, And Commercialization In Rural Georgia," Discussion Papers 7179, Hebrew University of Jerusalem, Department of Agricultural Economics and Management. [Downloadable!]
    Other versions:
  5. Sauer, Johannes & Davidova, Sophia & Latruffe, Laure, 2009. "Determinants of the Fallowing Decision in Kosovo," 83rd Annual Conference, March 30-April 1, 2009, Dublin, Ireland 51072, Agricultural Economics Society. [Downloadable!]
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