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The Choice of Farm Organization. A Hungarian Case

  • Ferto, Imre
  • Fogarasi, Jozsef

The literature on the agricultural transformation in Central an Eastern European countries usually neglect the investigation of organizational forms in agriculture. This paper is the first to analyze the choice of organization forms in transition agriculture employing transaction cost theory. The analysis is based on Hungarian FADN data in 2003. In general, our results do not support the theoretical predictions on the choice of farm organization, but confirm the differences in capital level and farm area observed in different farm organizations. The divergence between theory and empirics shed light on the importance of path dependency in explaining of farm organizations.

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File URL: http://purl.umn.edu/19463
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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2005 Annual meeting, July 24-27, Providence, RI with number 19463.

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Date of creation: 2005
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Handle: RePEc:ags:aaea05:19463
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  1. Roumasset, J., 1995. "The nature of the agricultural firm," Journal of Economic Behavior & Organization, Elsevier, vol. 26(2), pages 161-177, March.
  2. Dong, Xiao-yuan & Dow, Gregory K, 1993. "Monitoring Costs in Chinese Agricutural Teams," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 539-53, June.
  3. Matthew Gorton & Barna Kovacs & Tamas Mizik & Sophia Davidova & Tomas Ratinger & Belen Iraizoz, 2003. "An Analysis of the Performance of Commercially Oriented Farms in Hungary," Post-Communist Economies, Taylor & Francis Journals, vol. 15(3), pages 401-416.
  4. Gorton, Matthew & Davidova, Sophia, 2004. "Farm productivity and efficiency in the CEE applicant countries: a synthesis of results," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 30(1), January.
  5. D. McFadden & J. Hausman, 1981. "Specification Tests for the Multinominal Logit Model," Working papers 292, Massachusetts Institute of Technology (MIT), Department of Economics.
  6. Brooks, Karen & Nash, John, 2002. "The rural sector in transition economies," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 30, pages 1547-1592 Elsevier.
  7. Frisvold, George B., 1994. "Does supervision matter? Some hypothesis tests using Indian farm-level data," Journal of Development Economics, Elsevier, vol. 43(2), pages 217-238, April.
  8. 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.
  9. Allen, Douglas W & Lueck, Dean, 1998. "The Nature of the Farm," Journal of Law and Economics, University of Chicago Press, vol. 41(2), pages 343-86, October.
  10. Erik Mathijs & Liesbet Vranken, 2001. "Human Capital, Gender and Organisation in Transition Agriculture: Measuring and Explaining the Technical Efficiency of Bulgarian and Hungarian Farms," Post-Communist Economies, Taylor & Francis Journals, vol. 13(2), pages 171-187.
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