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Impediments to Employment and Enterprise Diversification: evidence from small-scale farms in Poland

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  • Hannah Chaplin
  • Sophia Davidova
  • Matthew Gorton

Abstract

In an environment of low returns to agricultural activities and slow structural change, both employment and enterprise diversification have been presented as possible strategies for raising the incomes of farm households. This paper focuses on the barriers to taking up off-farm employment and establishing new non-agricultural enterprises. Factor and cluster analysis are applied to a data-set of individual farms in Poland in order to identify groups of households facing similar constraints and profile policy measures that are most likely to assist diversification. The majority of non-diversifiers are unlikely to become pluriactive in the near future due to a combination of age, a desire to concentrate on farming and remoteness. Farm households that are willing to diversify are characterised by the lowest agricultural incomes. For these households, a poor endowment of human and physical capital is a major constraint.

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  • Hannah Chaplin & Sophia Davidova & Matthew Gorton, 2005. "Impediments to Employment and Enterprise Diversification: evidence from small-scale farms in Poland," The Institute for International Integration Studies Discussion Paper Series iiisdp102, IIIS.
    • Handle: RePEc:iis:dispap:iiisdp102
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    1. Matthew Gorton & Alina Daniłowska & Sławomir Jarka & Sławomir Straszewski & Aldona Zawojska & Edward Majewski, 2001. "The International Competitiveness of Polish Agriculture," Post-Communist Economies, Taylor & Francis Journals, vol. 13(4), pages 445-457.
    2. R. W. Fraser, 1990. "Producer Risk, Product Complementarity And Product Diversification," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(1), pages 103-107, January.
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    5. Davidova, Sophia & Gorton, Matthew & Ratinger, Tomas & Zawalinska, Katarzyna & Iraizoz, Belen & Kovacs, Barna & Mizo, Tamas, 2002. "Variations in Farm Performance: Evidence from the CEECs and Existing EU Member States," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24906, European Association of Agricultural Economists.
    6. Ellis, Frank, 2000. "Rural Livelihoods and Diversity in Developing Countries," OUP Catalogue, Oxford University Press, number 9780198296966, Decembrie.
    7. Laure Latruffe & Kelvin Balcombe & Sophia Davidova & Katarzyna Zawalinska, 2005. "Technical and scale efficiency of crop and livestock farms in Poland : does specialization matte r?," Post-Print hal-02392195, HAL.
    8. Chaplin, Hannah & Davidova, Sophia & Gorton, Matthew, 2002. "Non-Agricultural Diversification of Farm Households and Corporate Farms in Central Europe," Workshop on the Farm Household-Firm Unit: Its Importance in Agriculture and Implications for Statistics, April 12-13,2002, Wye Campus, Imperial College 15728, International Agricultural Policy Reform and Adjustment Project (IAPRAP).
    9. Lanjouw, Peter, 1999. "Rural Nonagricultural Employment and Poverty in Ecuador," Economic Development and Cultural Change, University of Chicago Press, vol. 48(1), pages 91-122, October.
    10. Chaplin, Hannah & Davidova, Sophia & Gorton, Matthew, 2003. "Agricultural Adjustment And The Diversification Of Farm Households In Central Europe," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25843, International 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. Gramzow, Andreas, 2006. "Endogenous Initiatives As A Chance To Improve Rural Livelihood? Results Of A Case Study In Baltow, South-Eastern Poland," IAMO Discussion Papers 14900, Institute of Agricultural Development in Transition Economies (IAMO).
    3. Heidelbach, Olaf, 2007. "Efficiency of selected risk management instruments: An empirical analysis of risk reduction in Kazakhstani crop production," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 40, number 92323.
    4. Gramzow, Andreas, 2009. "Rural development as provision of local public goods: Theory and evidence from Poland," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 51, number 92313.
    5. Gramzow, Andreas, 2006. "Endogenous initiatives as a chance to improve rural livelihood? Results of a case study in Bal­tow, South-Eastern Poland [Tourismus als eine Möglichkeit zur Erhöhung des ländlichen Einkommens? Erge," IAMO Discussion Papers 95, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    6. Freshwater, David, 2017. "Znaczenie wzrostu atrakcyjności i możliwości zatrudnienia pozarolniczego dla małych gospodarstw rolnych," Village and Agriculture (Wieś i Rolnictwo), Polish Academy of Sciences (IRWiR PAN), Institute of Rural and Agricultural Development, vol. 3(176).

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    JEL classification:

    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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