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Farm Output, Non-Farm Income, and Commercialization in Rural Georgia

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  • Kan, Iddo
  • Kimhi, Ayal
  • Lerman, Zvi

Abstract

This article examines the decision of farmers to sell part of their farm output on the market, using data from the Republic of Georgia. A two-level empirical model is used, in which endowments and resource allocation decisions determine farm output and non-farm income, and these in turn determine market participation. We found, as expected, that farm output affects market participation positively, while non-farm income affects it negatively. Landholdings have an indirect positive effect on market participation, through its positive effect on farm output. Education has a negative effect on market participation, mainly through its positive effect on non-farm income.

Suggested Citation

Handle: RePEc:ags:ejade1:112608
DOI: 10.22004/ag.econ.112608
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