IDEAS home Printed from https://ideas.repec.org/a/zbw/espost/183164.html
   My bibliography  Save this article

Human capital and the agrarian structure in transition: Micro evidence from Romania

Author

Listed:
  • Rizov, Marian

Abstract

This paper examines determinants of the agrarian structure in transition economies with an emphasis on the role of rural households’ human capital. Farm restructuring has resulted in a broad range of farm types, such as co-operatives, partnerships, individual farms and combinations of them. In our theoretical model the fact that household resources are allocated into different organization modes is attributed to the utility maximization strategy of heterogeneous agents deriving income from uncertain sources in the face of absent or imperfect factor markets. Empirical results from a multinomial logit model estimated with data from two-year nation-wide survey of Romanian rural households support the hypothesis that the current agrarian structure is primarily determined by both the human capital characteristics of and economic risks faced by the households.

Suggested Citation

  • Rizov, Marian, 2005. "Human capital and the agrarian structure in transition: Micro evidence from Romania," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 26(1), pages 119-149.
  • Handle: RePEc:zbw:espost:183164
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/183164/1/Rizov%20EID2005.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. McFadden, Daniel L., 1984. "Econometric analysis of qualitative response models," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 2, chapter 24, pages 1395-1457, Elsevier.
    2. Thomas Lemieux, 2002. "Decomposing changes in wage distributions: a unified approach," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 35(4), pages 646-688, November.
    3. Yang, Dennis Tao, 1997. "Education and Off-Farm Work," Economic Development and Cultural Change, University of Chicago Press, vol. 45(3), pages 613-632, April.
    4. Marcel Fafchamps & Agnes R. Quisumbing, 1999. "Human Capital, Productivity, and Labor Allocation in Rural Pakistan," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 369-406.
    5. William Hallagan, 1978. "Self-Selection by Contractual Choice and the Theory of Sharecropping," Bell Journal of Economics, The RAND Corporation, vol. 9(2), pages 344-354, Autumn.
    6. Sahn, David E. & Alderman, Harold, 1988. "The effects of human capital on wages, and the determinants of labor supply in a developing country," Journal of Development Economics, Elsevier, vol. 29(2), pages 157-183, September.
    7. Erik Mathijs & Johan F. M. Swinnen, 2001. "Production Organization And Efficiency During Transition: An Empirical Analysis Of East German Agriculture," The Review of Economics and Statistics, MIT Press, vol. 83(1), pages 100-107, February.
    8. Rao, C H Hanumantha, 1971. "Uncertainty, Entrepreneurship, and Sharecropping in India," Journal of Political Economy, University of Chicago Press, vol. 79(3), pages 578-595, May-June.
    9. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
    10. Reid, Joseph D, Jr, 1976. "Sharecropping and Agricultural Uncertainty," Economic Development and Cultural Change, University of Chicago Press, vol. 24(3), pages 549-576, April.
    11. Mathijs, Erik & Swinnen, Johan F M, 1998. "The Economics of Agricultural Decollectivization in East Central Europe and the Former Soviet Union," Economic Development and Cultural Change, University of Chicago Press, vol. 47(1), pages 1-26, October.
    12. Allen, Douglas W & Lueck, Dean, 1998. "The Nature of the Farm," Journal of Law and Economics, University of Chicago Press, vol. 41(2), pages 343-386, October.
    13. W. Bruce Wydick, 1999. "Credit access, human capital and class structure mobility," Journal of Development Studies, Taylor & Francis Journals, vol. 35(6), pages 131-152.
    14. James Roumasset & Marilou Uy, 1987. "Agency Costs and the Agricultural Firm," Land Economics, University of Wisconsin Press, vol. 63(3), pages 290-302.
    15. Andrew D. Foster & Mark R. Rosenzweig, 1993. "Information, Learning, and Wage Rates in Low-Income Rural Areas," Journal of Human Resources, University of Wisconsin Press, vol. 28(4), pages 759-790.
    16. Rizov, Marian & Gavrilescu, Dinu & Gow, Hamish & Mathijs, Erik & Swinnen, Johan F. M., 2001. "Transition and Enterprise Restructuring: The Development of Individual Farming in Romania," World Development, Elsevier, vol. 29(7), pages 1257-1274, July.
    17. Roumasset, J., 1995. "The nature of the agricultural firm," Journal of Economic Behavior & Organization, Elsevier, vol. 26(2), pages 161-177, March.
    18. Rizov, Marian, 2003. "Endogenous production organization during market liberalization: farm level evidence from Romania," Economic Systems, Elsevier, vol. 27(2), pages 171-187, June.
    19. Jolliffe, Dean, 1997. "Whose education matters in the determination of household income," FCND discussion papers 39, International Food Policy Research Institute (IFPRI).
    20. Ahituv, Avner & Kimhi, Ayal, 2002. "Off-farm work and capital accumulation decisions of farmers over the life-cycle: the role of heterogeneity and state dependence," Journal of Development Economics, Elsevier, vol. 68(2), pages 329-353, August.
    21. Agrawal, Pradeep, 1999. "Contractual structure in agriculture," Journal of Economic Behavior & Organization, Elsevier, vol. 39(3), pages 293-325, July.
    22. Franklin Allen, 1982. "On Share Contracts and Screening," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 541-547, Autumn.
    23. Lerman, Zvi, 2001. "Agriculture in transition economies: from common heritage to divergence," Agricultural Economics, Blackwell, vol. 26(2), pages 95-114, November.
    24. Higgs, Robert, 1973. "Race, Tenure, and Resource Allocation in Southern Agriculture, 1910," The Journal of Economic History, Cambridge University Press, vol. 33(1), pages 149-169, March.
    25. Rees, Hedley & Shah, Anup, 1986. "An Empirical Analysis of Self-employment in the U.K," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(1), pages 95-108, January.
    26. Heltberg, Rasmus, 1998. "Rural market imperfections and the farm size-- productivity relationship: Evidence from Pakistan," World Development, Elsevier, vol. 26(10), pages 1807-1826, October.
    27. Feder, Gershon, 1985. "The relation between farm size and farm productivity : The role of family labor, supervision and credit constraints," Journal of Development Economics, Elsevier, vol. 18(2-3), pages 297-313, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rizov, Marian, 2006. "Rural development perspectives in enlarging Europe: The implications of CAP reforms and agricultural transition in accession countries," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 14(2), pages 219-238.
    2. Borodina Olena & Rykovska Oksana, 2020. "Human Capital Evaluation and Capitalisation Specific to Rural Areas of Ukraine," Economic and Regional Studies / Studia Ekonomiczne i Regionalne, Sciendo, vol. 13(1), pages 58-69, March.
    3. Rizov, Marian, 2008. "Institutions, reform policies, and productivity growth in agriculture: Evidence from former communist countries," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 55(4), pages 307-323.
    4. Viira, Ants-Hannes & Pöder, Anne & Värnik, Rando, 2013. "The Determinants of Farm Growth, Decline and Exit in Estonia," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 62(01), pages 1-13, February.
    5. Viira, Ants-Hannes & Pöder, Anne & Värnik, Rando, 2013. "The Determinants of Farm Growth, Decline and Exit in Estonia," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 62(1).
    6. Fredriksson, Lena & Rizov, Marian & Davidova, Sophia & Bailey, Alastair, 2021. "Smallholder Farms in Bulgaria and Their Contributions to Food and Social Security," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 13(14).
    7. Georgeta Vidican-Sgouridis & Annette Kim, 2008. "From Workers to Owners: Survey Evidence on the Impact of Property Rights Reforms on Small Farmers in Two Regions in Romania," William Davidson Institute Working Papers Series wp905, William Davidson Institute at the University of Michigan.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rizov, Marian, 2002. "Agricultural Production Organization in Transition Economies and the Role of Human Capital: Evidence from Romania," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24925, European Association of Agricultural Economists.
    2. Rizov, Marian, 2003. "Endogenous production organization during market liberalization: farm level evidence from Romania," Economic Systems, Elsevier, vol. 27(2), pages 171-187, June.
    3. Rizov, Marian, 2005. "Pull and push: individual farming in Hungary," Food Policy, Elsevier, vol. 30(1), pages 43-62, February.
    4. Rizov, Marian & Swinnen, Johan F.M., 2004. "Human capital, market imperfections, and labor reallocation in transition," Journal of Comparative Economics, Elsevier, vol. 32(4), pages 745-774, December.
    5. Rizov, Marian & Mathijs, Erik & Swinnen, Johan F.M., 2000. "Post-Communist Agricultural Transformation And The Role Of Human Capital: Evidence From Romania," 2000 Annual meeting, July 30-August 2, Tampa, FL 21798, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Agrawal, Pradeep, 1999. "Contractual structure in agriculture," Journal of Economic Behavior & Organization, Elsevier, vol. 39(3), pages 293-325, July.
    7. Rizov, Marian, 2004. "Shift To Individual Farming And The Productivity Growth Of Transition Agriculture," 2004 Annual meeting, August 1-4, Denver, CO 20116, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Bignebat, Céline & Latruffe, Laure, 2009. "Twenty years of land reforms in Central and Eastern Europe: state of play and outlook," Working Papers 211013, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    9. M. A. Taslim, 1992. "A Survey of Theories of Cropshare Tenancy," The Economic Record, The Economic Society of Australia, vol. 68(3), pages 254-275, September.
    10. Marcel Fafchamps & Agnes R. Quisumbing, 1999. "Human Capital, Productivity, and Labor Allocation in Rural Pakistan," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 369-406.
    11. Ibrahim Demir, 2016. "The firm size, farm size, and transaction costs: the case of hazelnut farms in Turkey," Agricultural Economics, International Association of Agricultural Economists, vol. 47(1), pages 81-90, January.
    12. Sen, Debapriya, 2011. "A theory of sharecropping: The role of price behavior and imperfect competition," Journal of Economic Behavior & Organization, Elsevier, vol. 80(1), pages 181-199.
    13. Laurence Amblard & J.P. Colin, 2009. "Reverse tenancy in Romania: Actors' rationales and equity outcomes," Post-Print hal-00454533, HAL.
    14. Debapriya Sen, 2005. "Sharecropping, interlinkage, and price variation," Department of Economics Working Papers 05-10, Stony Brook University, Department of Economics.
    15. Mathijs, Erik & Noev, Nivelin, 2002. "Commercialization and Subsistence in Transaction Agriculture: Empirical Evidence from Albania, Bulgaria, Hungary and Romania," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24786, European Association of Agricultural Economists.
    16. Eric C. Edwards & Martin Fiszbein & Gary D. Libecap, 2022. "Property Rights to Land and Agricultural Organization: An Argentina–United States Comparison," Journal of Law and Economics, University of Chicago Press, vol. 65(S1), pages 1-33.
    17. Elliott, Matthew & James, Harvey Jr., 2013. "Nature Of The Farm: Revisited," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150726, Agricultural and Applied Economics Association.
    18. Muller, Malte & Rommel, Jens, 2018. "Should I Stay or Should I Go? A Behavioral Approach to Organizational Choice in Tajikistan’s Agriculture," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 43(3), September.
    19. Juliano Junqueira Assunção, 2005. "Non-agricultural land use and land reform: theory and evidence from Brazil," Textos para discussão 496, Department of Economics PUC-Rio (Brazil).
    20. Pavel Ciaian & d'Artis Kancs & Jan Pokrivcak, 2008. "Comparative Advantages, Transaction Costs and Factor Content of Agricultural Trade: Empirical Evidence from the CEE," EERI Research Paper Series EERI_RP_2008_03, Economics and Econometrics Research Institute (EERI), Brussels.

    More about this item

    Keywords

    human capital; rural households; farming; economic transition;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:espost:183164. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zbwkide.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.