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Income Diversity in Rural Lithuania: Benefits, Barriers, and Incentives

Listed author(s):
  • Dirk Bezemer

    (Overseas Development Institute, London; Imperial College, University of London)

  • Jurgita Rutkauskaite

    (Lithuanian Institute of Agrarian Economics, Vilnuis)

  • Romualdas Zemeckis

    (Lithuanian Institute of Agrarian Economics, Vilnuis)

Economic hardship, agricultural policy reform and price developments have adversely affected incomes from agricultural production in Lithuania, and many farm households have accessed additional sources of income in the rural economy. In an analysis of recently collected survey data we find that non-farm wage employment particularly benefits poorer household, whereas non-agricultural enterprises are more common among higher-income farm households. Such enterprises diminish transaction problems typical for transition economies, allow households to capture more value added than in agricultural production, and create jobs in the local economy. Non-agricultural enterprises are more likely to be found with larger households and in more remote areas. Non-agricultural employment are more important income components for households that have more dependant members, are located in remoter areas, and have less access to economic institutions. We discuss the implications of these findings for the role of rural income diversity in economic regeneration.

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Paper provided by EconWPA in its series Development and Comp Systems with number 0304004.

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Length: 22 pages
Date of creation: 14 Apr 2003
Handle: RePEc:wpa:wuwpdc:0304004
Note: Type of Document - Microsoft Word; pages: 22
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  1. D. M. Shucksmith & R. Smith, 1991. "Farm Household Strategies And Pluriactivity In Upland Scotland," Journal of Agricultural Economics, Wiley Blackwell, vol. 42(3), pages 340-353.
  2. Macours, Karen & Swinnen, Johan F M, 2002. "Patterns of Agrarian Transition," Economic Development and Cultural Change, University of Chicago Press, vol. 50(2), pages 365-394, January.
  3. M. Rose Olfert, 1992. "Nonfarm, Employment as a Response to Underemployment in Agriculture," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 40(3), pages 443-458, November.
  4. Ferreira, Francisco H. G. & Lanjouw, Peter, 2001. "Rural Nonfarm Activities and Poverty in the Brazilian Northeast," World Development, Elsevier, vol. 29(3), pages 509-528, March.
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