Modelling the effects of subsistence on Bulgarian agricultural performance
The paper demonstrates the effects that the largely ignored, phenomenon of subsistence farming can have on agricultural development in countries in transition. The problem of subsistence consists of the different economic behaviour of subsistence farms compared to commercial ones. The paper evaluates the impacts of subsistence on overall agriculture for Bulgaria. These are assessed using a dualistic agricultural sector model, namely SCAPAM, the main elements of which are highlighted. The above model is based on theoretical principles, analysed in previous work of the authors, and on existing, but largely unreported empirical work in this area. The purpose of the study is not to produce forecasts of the future dynamics of the agricultural sector, but to evaluate and quantitatively test the effects of subsistence on total agriculture for a real agricultural economy in transition, namely Bulgaria. The results are consistent with the theoretical and empirical work of the authors for a hypothetical agricultural economy.
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