Barriers to Exit from Subsistence Agriculture
This paper reviews the evidence on the determinants of subsistence agriculture and the barriers that farmers face to switch to market-oriented agriculture. We review a number of recent empirical approaches to the estimation of variable, fixed, and sunk transaction costs, with the weight of the evidence suggesting that those costs are very substantial. Tentative policy implications are drawn in terms of infrastructure and support as well as the organization of intermediation markets.
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