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Livelihoods and farm efficiency in rural Georgia

Author

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  • Dirk Bezemer
  • Kelvin Balcombe
  • Junior Davis
  • Iain Fraser

Abstract

This study contributes to the literature on the role of livelihood strategies in rural growth and poverty reduction. It distinguishes between livelihood diversity strategies that contribute to sustainable growth in household incomes, and those that mainly have a 'coping' function. It suggests that typically, the contribution of livelihood diversity to growing household income is through relaxing dependence on credit for access to capital. In this scenario, livelihood diversity would lead to higher technical efficiency in agriculture via investment and thereby to higher household incomes. Survey data from Georgia are introduced and used to test these hypotheses using a Bayesian stochastic frontier approach. The findings are relevant to defining more clearly the scope and aims of policies to stimulate the rural non-farm economy in developing and transition countries.

Suggested Citation

  • Dirk Bezemer & Kelvin Balcombe & Junior Davis & Iain Fraser, 2005. "Livelihoods and farm efficiency in rural Georgia," Applied Economics, Taylor & Francis Journals, vol. 37(15), pages 1737-1745.
    • Handle: RePEc:taf:applec:v:37:y:2005:i:15:p:1737-1745
    DOI: 10.1080/00036840500215253
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    References listed on IDEAS

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    5. Barrett, C. B. & Reardon, T. & Webb, P., 2001. "Nonfarm income diversification and household livelihood strategies in rural Africa: concepts, dynamics, and policy implications," Food Policy, Elsevier, vol. 26(4), pages 315-331, August.
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    Cited by:

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    3. Mutenje, Munyaradzi & Kankwamba, Henry & Mangisonib, Julius & Kassie, Menale, 2016. "Agricultural innovations and food security in Malawi: Gender dynamics, institutions and market implications," Technological Forecasting and Social Change, Elsevier, vol. 103(C), pages 240-248.
    4. Regina Neudert & Naiba Allahverdiyeva & Niyaz Mammadov & Alexandre Didebulidze & Volker Beckmann, 2020. "Diversification of Livestock-Keeping Smallholders in Mountainous Rural Regions of Azerbaijan and Georgia," Land, MDPI, vol. 9(8), pages 1-25, August.
    5. Hoang, Trung X. & Pham, Cong S. & Ulubaşoğlu, Mehmet A., 2014. "Non-Farm Activity, Household Expenditure, and Poverty Reduction in Rural Vietnam: 2002–2008," World Development, Elsevier, vol. 64(C), pages 554-568.
    6. Maya Grigolia & Lasha Labadze & Pavol Minarik & Alena Zemplinerova & Marek Vokoun, 2015. "Transfer of Know-how for SMEs in Georgia, Moldova and Ukraine. White Paper: Georgia," CASE Network Reports 0123, CASE-Center for Social and Economic Research.

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