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The Choice of Farm Organisation. A Hungarian Case

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  • Ferto, Imre
  • Fogarasi, Jozsef

Abstract

The literature on the agricultural transformation in Central an Eastern European countries usually neglect the investigation of organisational forms in agriculture. This paper is the first to analyse the choice of organisation 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 organisation, but confirm the differences in capital level and farm area observed in different farm organisations. The divergence between theory and empirics shed light on the importance of path dependency in explaining of farm organisations.

Suggested Citation

  • Ferto, Imre & Fogarasi, Jozsef, 2005. "The Choice of Farm Organisation. A Hungarian Case," 94th Seminar, April 9-10, 2005, Ashford, UK 24420, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae94:24420
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. 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.
    4. Hausman, Jerry & McFadden, Daniel, 1984. "Specification Tests for the Multinomial Logit Model," Econometrica, Econometric Society, vol. 52(5), pages 1219-1240, September.
    5. 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.
    6. 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 539-553, June.
    7. 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.
    8. Roumasset, J., 1995. "The nature of the agricultural firm," Journal of Economic Behavior & Organization, Elsevier, vol. 26(2), pages 161-177, March.
    9. 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.
    10. 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.
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    Cited by:

    1. Cristina Salvioni & Laura Aguglia & Patrizia Borsotto, 2011. "Proprietary and Corporate Structures in Italian Agriculture," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 1, March.
    2. Gardner, Bruce L. & Lerman, Zvi, 2006. "Agricultural Cooperative Enterprise in the Transition from Socialist Collective Farming," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 34(1).

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