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Why is the Polish farm sector still so underdeveloped?

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  • Arne Henningsen

Abstract

This article presents a comprehensive review of the Polish farm sector. The main objective is to analyse the causes of its backwardness and slow development. Low remuneration of farm work and the resultant low profitability are the largest problems of many farms. Several causes of the low profitability are evaluated. We show that all relevant causes are closely interrelated and that the extraordinarily high labour intensity has the largest impact. Subsequently, we analyse several causes of the extremely large share of agricultural employment in the Polish economy. Low skills of farm workers, the poor performance of the land market and the high level of subsidisation of the social security system for farmers (KRUS) are identified as the most important causes. Finally, some policy recommendations are given.

Suggested Citation

  • Arne Henningsen, 2009. "Why is the Polish farm sector still so underdeveloped?," Post-Communist Economies, Taylor & Francis Journals, vol. 21(1), pages 47-64.
  • Handle: RePEc:taf:pocoec:v:21:y:2009:i:1:p:47-64
    DOI: 10.1080/14631370802663646
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    References listed on IDEAS

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    1. Christian H.C.A. Henning & Arne Henningsen, 2007. "Modeling Farm Households' Price Responses in the Presence of Transaction Costs and Heterogeneity in Labor Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(3), pages 665-681.
    2. Henning, Christian H.C.A. & Henningsen, Arne, 2007. "AJAE Appendix: Modeling Farm Households' Price Responses in the Presence of Transaction Costs and Heterogeneity in Labor Markets," American Journal of Agricultural Economics Appendices, Agricultural and Applied Economics Association, vol. 89(3), August.
    3. Wilkin, Jerzy, 2007. "Agriculture in new Member States - expectations and lessons learned," 104th Seminar, September 5-8, 2007, Budapest, Hungary 8529, European Association of Agricultural Economists.
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    Cited by:

    1. Jan Fałkowski & Maciej Jakubowski & Paweł Strawiński, 2014. "Returns from income strategies in rural Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 22(1), pages 139-178, January.
    2. Henningsen, Geraldine & Henningsen, Arne & Henning, Christian H.C.A., 2011. "Measuring the Influence of Information Networks on Transaction Costs Using a Non-parametric Regression Technique," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114547, European Association of Agricultural Economists.

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