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Subsistence Agriculture in Transition Economies: its Roles and Determinants

  • Philip Kostov

    (Queen's Univeristy Belfast)

  • John Lingard

    (University of Newcastle)

In line with recent suggestions about the potential positive effects of subsistence agriculture in fragile economies, this paper discusses and explains the effects of subsistence agriculture with emphasis on transition countries. Some micro-economic models of subsistence agriculture are reviewed and a two-stage decision model, combining risk aversion and transaction costs explanations for subsistence is put forward. The role of subsistence agriculture is addressed in terms of a static comparison to a commercial only agriculture. It is shown that, under some conditions, subsistence can play a stabilising role and have positive impacts on total agriculture. Employing the concept of a subsistence level of consumption, the paper demonstrates that these static effects can be valid in a dynamic perspective, provided additional conditions are met. Policy recommendations and a future research agenda with regard to possible agricultural commercialisation are drawn from the analysis.

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File URL: http://econwpa.repec.org/eps/othr/papers/0410/0410004.pdf
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Paper provided by EconWPA in its series Others with number 0410004.

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Length: 33 pages
Date of creation: 04 Oct 2004
Date of revision:
Handle: RePEc:wpa:wuwpot:0410004
Note: Type of Document - pdf; pages: 33
Contact details of provider: Web page: http://econwpa.repec.org

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