Pull and Push: Individual Farming in Hungary

Posted: 29 Aug 2005

See all articles by Marian Rizov

Marian Rizov

University of Lincoln (UK) - Lincoln International Business School; Lincoln Economics and Finance (LEAF) Research Group

Abstract

This paper is motivated by the fact that (part-time) individual farming is commonly observed among rural households in a number of transition economies but it is not clear prima facie if such resource allocation is optimal. A conceptual model of household labor allocation between individual farming and off-farm wage employment is developed. The model explicitly accounts for the role of household endowments in labor allocation as the analysis is conditioned on the status of factor markets. The hypotheses are empirically tested using 1998 data from a country-representative survey of rural households in Hungary, an advanced transition country, which only recently became EU member state. Results provide evidence that capital market imperfections still remain. Implications for the policies related to agricultural sector restructuring, employment and rural development are discussed.

Keywords: Households, individual farming, labor allocation, diversification, transition economies, international integration

JEL Classification: D1, J2, P2, R2

Suggested Citation

Rizov, Marian, Pull and Push: Individual Farming in Hungary. Food Policy, Vol. 30, No. 1, pp. 43-62, Available at SSRN: https://ssrn.com/abstract=785851

Marian Rizov (Contact Author)

University of Lincoln (UK) - Lincoln International Business School ( email )

Brayford Pool
Lincoln, LN6 7TS
United Kingdom

Lincoln Economics and Finance (LEAF) Research Group ( email )

United Kingdom

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