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The impact of structural social capital on farm income in the Czech Republic

Author

Listed:
  • A. Wolz

    (Institute of Agricultural Development in Central & Eastern Europe (IAMO), Halle (Saale), Germany)

  • J. Fritzsch

    (Institute of Agricultural Development in Central & Eastern Europe (IAMO), Halle (Saale), Germany)

  • J. Pencáková

    (Institute of Agricultural Development in Central & Eastern Europe (IAMO), Halle (Saale), Germany)

Abstract

The change of the economic system from the socialist central planning system to the market economy required the reorganisation not only of agricultural production, but also of the organisations supporting it. In the Czech Republic, agricultural production is characterised by a dualistic structure, i.e. private farmers on the one side and corporate farms on the other. However, among both groups some had been economically more successful than others. In general, a varying adoption of production factors, i.e. land, labour and capital is identified as being of influence. Namely, their ability to collaborate with other farms which is discussed under the concept of social capital, will be analysed in this paper. Based on the findings of a survey among a sample of 62 farms by adopting factor and multiple regression analysis, it can be deduced that social capital is indeed a significant factor determining farm income.

Suggested Citation

  • A. Wolz & J. Fritzsch & J. Pencáková, 2006. "The impact of structural social capital on farm income in the Czech Republic," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 52(6), pages 281-288.
    • Handle: RePEc:caa:jnlage:v:52:y:2006:i:6:id:5025-agricecon
    DOI: 10.17221/5025-AGRICECON
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    References listed on IDEAS

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    1. Charles F. Manski, 2000. "Economic Analysis of Social Interactions," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 115-136, Summer.
    2. Paldam, Martin & Svendsen, Gert Tinggaard, 2000. "An essay on social capital: looking for the fire behind the smoke," European Journal of Political Economy, Elsevier, vol. 16(2), pages 339-366, June.
    3. Joel Sobel, 2002. "Can We Trust Social Capital?," Journal of Economic Literature, American Economic Association, vol. 40(1), pages 139-154, March.
    4. Wolz, Axel & Fritzsch, Jana & Reinsberg, Klaus, 2005. "The Impact of Social Capital on Agricultural Income Among Corporate Farms in the Czech Republic," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24695, European Association of Agricultural Economists.
    5. Scott Rozelle & Johan F.M. Swinnen, 2004. "Success and Failure of Reform: Insights from the Transition of Agriculture," Journal of Economic Literature, American Economic Association, vol. 42(2), pages 404-456, June.
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    Cited by:

    1. E. Škorecová & M. Farkašová, 2007. "Social information in managerial accounting and managerial information system," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 53(8), pages 379-384.
    2. Pavel POSPĚCH & Daniela SPĚŠNÁ, 2011. "What is the importance of social capital in Czech agriculture? An analysis of selected components," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 57(6), pages 279-287.

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