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Subsistence Agriculture in Transition Economies: Its Roles and Determinants

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  • Philip Kostov
  • John Lingard

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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  • Philip Kostov & John Lingard, 2004. "Subsistence Agriculture in Transition Economies: Its Roles and Determinants," Journal of Agricultural Economics, Wiley Blackwell, vol. 55(3), pages 565-579.
  • Handle: RePEc:bla:jageco:v:55:y:2004:i:3:p:565-579
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    Cited by:

    1. Kan, Iddo & Kimhi, Ayal & Lerman, Zvi, 2006. "Farm Output, Non-Farm Income, and Commercialization in Rural Georgia," eJADE: electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization, Agricultural and Development Economics Division, vol. 3(2).
    2. Sauer, Johannes & Davidova, Sophia & Latruffe, Laure, 2009. "Determinants for fallowing land: The case of Kosovo," 2009 Conference, August 16-22, 2009, Beijing, China 51626, International Association of Agricultural Economists.
    3. 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.
    4. 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.
    5. 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.
    6. Wolz, Axel & Fritzsch, Jana & Shterev, Nikolai & Buchenrieder, Gertrud & Paloma, Sergio Gomez y, 0. "Semi-Subsistence Farming, Farm Income and Social Capital in Bulgaria – Is there a Link?," Quarterly Journal of International Agriculture, Humboldt-Universität zu Berlin, vol. 49.
    7. 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.
    8. Bruckner, Martin & Fischer, Günther & Tramberend, Sylvia & Giljum, Stefan, 2015. "Measuring telecouplings in the global land system: A review and comparative evaluation of land footprint accounting methods," Ecological Economics, Elsevier, pages 11-21.
    9. Latruffe, Laure & Davidova, Sophia & Desjeux, Yann, 2007. "Market Imperfections and Subsistence Farming: The Case of Kosovo," 100th Seminar, June 21-23, 2007, Novi Sad, Serbia and Montenegro 162351, European Association of Agricultural Economists.
    10. Szumelda Anna, 2013. "Is Small Beautiful? The Debate on the Future of Small Individual Farms in Poland," Eastern European Countryside, De Gruyter Open, pages 219-250.
    11. Kujáni, Katalin Olga, 2011. "The French multifunctional model and the short food supply chain as adaptable examples in the case of small and self- subsistence farms in the EU new member states," Problems of World Agriculture / Problemy Rolnictwa Åšwiatowego, WydziaÅ‚ Nauk Ekonomicznych, Uniwersytet Warszawski, vol. 11(26).

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    JEL classification:

    • P - Economic Systems
    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Z - Other Special Topics

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