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Development of Individual Farming in Georgia: Descriptive Analysis and Comparisons


  • Gogodze, Joseph
  • Kan, Iddo
  • Kimhi, Ayal


The purpose of this paper is to examine the situation of individual farms in Georgia using a survey conducted in 2003, in comparison to a similar survey conducted in 1996. The basic issue investigated is the progress of the land individualization process, and the consequences of this process for the development of the agricultural sector, and more generally for the well-being of farm families and rural poverty. We found significant changes in the farm sector. In particular, average landholdings have increased, mainly through leasing of plots. There is more specialization, with some farmers not producing at all and others expanding. Profits and income have deteriorated markedly, and many producers did not even sell their produce on the market. Those producers who leased land were much more likely to sell their produce on the market and they also had higher incomes and relied less on off-farm income and social assistance payments. Still, fewer than 15% of the farmers lease land. While the average age of the population has increased, the level of schooling declined. This indicates a possible “brain drain” process of selective outmigration. Another worrying implication of the income situation is the increase in the incidence of child labor. These findings indicate that the potential of increased land transactions is still there, and a continuing specialization process that will enable successful farmers to acquire more land could improve the economic well-being of farm families even in a period of depressed produce prices.

Suggested Citation

  • Gogodze, Joseph & Kan, Iddo & Kimhi, Ayal, 2005. "Development of Individual Farming in Georgia: Descriptive Analysis and Comparisons," MPRA Paper 11721, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:11721

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    1. Elmendorf, Douglas W. & Gregory Mankiw, N., 1999. "Government debt," Handbook of Macroeconomics,in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 25, pages 1615-1669 Elsevier.
    2. Barro, Robert J, 1989. "The Ricardian Approach to Budget Deficits," Journal of Economic Perspectives, American Economic Association, vol. 3(2), pages 37-54, Spring.
    3. Hussein, Khaled A. & de Mello, Luiz Jr., 2001. "Is foreign debt portfolio management efficient in emerging economies?," Journal of Development Economics, Elsevier, vol. 66(1), pages 317-335, October.
    4. Fry, Maxwell J., 1992. "Some stabilizing and destabilizing effects of foreign debt accumulation in developing countries," Economics Letters, Elsevier, vol. 39(3), pages 315-321, July.
    5. Khaled Hussein, 2001. "Is Foreign Debt Portfolio Management Efficient in Emerging Economies?," IMF Working Papers 01/121, International Monetary Fund.
    6. Albu, Lucian Liviu, 2002. "Sustainability Function," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 5-14, June.
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    Cited by:

    1. Kan, Iddo & Kimhi, Ayal & Lerman, Zvi, 2006. "Farm Output, Non-Farm Income, and Commercialization in Rural Georgia," eJADE: electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization, Agricultural and Development Economics Division, vol. 3(2).
    2. Gogodze, Joseph & Kan, Iddo & Kimhi, Ayal, 2007. "Land Reform And Rural Well Being In The Republic Of Georgia: 1996-2003," Discussion Papers 7168, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    3. Mieke Meurs, 2013. "What Makes a Farmer? The Limited Expansion of Commercial Farming Among Bulgarian Smallholders," Working Papers 2013-08, American University, Department of Economics.

    More about this item


    Individual Farming; Georgia;

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P32 - Economic Systems - - Socialist Institutions and Their Transitions - - - Collectives; Communes; Agricultural Institutions


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