IDEAS home Printed from https://ideas.repec.org/a/fao/tejade/v3y2006i2p276-286.html
   My bibliography  Save this article

Farm output, non-farm income and commercialization in rural Georgia

Author

Listed:
  • Iddo Kan

    (Haifa University)

  • Ayal Kimhi

    (The Hebrew University)

  • Zvi Lerman

    (The Hebrew University)

Abstract

This article examines the decision of farmers to sell part of their farm output on the market, using data from the Republic of Georgia. A two-level empirical model is used, in which endowments and resource allocation decisions determine farm output and non-farm income, and these in turn determine market participation. We found, as expected, that farm output affects market participation positively, while non-farm income affects it negatively. Landholdings have an indirect positive effect on market participation, through its positive effect on farm output. Education has a negative effect on market participation, mainly through its positive effect on non-farm income.

Suggested Citation

  • Iddo Kan & Ayal Kimhi & Zvi Lerman, 2006. "Farm output, non-farm income and commercialization in rural Georgia," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 3(2), pages 276-286.
    • Handle: RePEc:fao:tejade:v:3:y:2006:i:2:p:276-286
    as

    Download full text from publisher

    File URL: ftp://ftp.fao.org/docrep/fao/009/ah758e/ah758e00.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Renkow, Mitch & Hallstrom, Daniel G. & Karanja, Daniel D., 2004. "Rural infrastructure, transactions costs and market participation in Kenya," Journal of Development Economics, Elsevier, vol. 73(1), pages 349-367, February.
    2. Nigel Key & Elisabeth Sadoulet & Alain De Janvry, 2000. "Transactions Costs and Agricultural Household Supply Response," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 245-259.
    3. Philip Kostov & John Lingard, 2004. "Subsistence Agriculture in Transition Economies: Its Roles and Determinants," Journal of Agricultural Economics, Wiley Blackwell, vol. 55(3), pages 565-579, November.
    4. Marc F. Bellemare & Christopher B. Barrett, 2006. "An Ordered Tobit Model of Market Participation: Evidence from Kenya and Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 324-337.
    5. Borbala Balint & Peter Wobst, 2006. "Institutional Factors and Market Participation by Individual Farmers: The Case of Romania," Post-Communist Economies, Taylor & Francis Journals, vol. 18(1), pages 101-121.
    6. Lerman, Zvi, 2005. "The Impact Of Land Reform On Rural Household Income In Transcaucasia And Central Asia," Discussion Papers 7169, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    7. Erik Mathijs & Nivelin Noev, 2004. "Subsistence Farming in Central and Eastern Europe : Empirical Evidence from Albania, Bulgaria, Hungary, and Romania," Eastern European Economics, Taylor & Francis Journals, vol. 42(6), pages 72-89, November.
    8. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sisira S. Withanachchi & Ilia Kunchulia & Giorgi Ghambashidze & Rami Al Sidawi & Teo Urushadze & Angelika Ploeger, 2018. "Farmers’ Perception of Water Quality and Risks in the Mashavera River Basin, Georgia: Analyzing the Vulnerability of the Social-Ecological System through Community Perceptions," Sustainability, MDPI, vol. 10(9), pages 1-26, August.
    2. Paul Nkegbe & Abdelkrim Araar & Benjamin Abu & Yazidu Ustarz & Hamdiyah Alhassan & Edinam Dope Setsoafia & Shamsia Abdul-Wahab, 2018. "Rural Non-Farm Engagement and Agriculture Commercialization in Ghana: Complements or Competitors?," Working Papers PMMA 2018-07, PEP-PMMA.
    3. Tesfaye Woldeyohanes & Thomas Heckelei & Yves Surry, 2017. "Effect of off-farm income on smallholder commercialization: panel evidence from rural households in Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 48(2), pages 207-218, March.
    4. Olale, Edward & Cranfield, John A.L., 2009. "The Role of Income Diversification, Transaction Cost and Production Risk in Fertilizer Market Participation," 2009 Conference, August 16-22, 2009, Beijing, China 49929, International Association of Agricultural Economists.
    5. Paul Kwame Nkegbe & Abdelkrim Araar & Benjamin Musah Abu & Hamdiyah Alhassan & Yazidu Ustarz & Edinam Dope Setsoafia & Shamsia Abdul-Wahab, 2022. "Nonfarm activity and market participation by farmers in Ghana," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 10(1), pages 1-23, December.
    6. 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.
    7. Zhenhai Xiang & Pengfei Ban & Qifeng Yuan, 2020. "Measurement of the Income Difference of Rural Residents in Peri-Urbanized Areas and Its Influencing Factors: Evidence from Nanhai, Foshan, China," Sustainability, MDPI, vol. 12(20), pages 1-21, October.
    8. Kimhi, Ayal, 2007. "Does Land Reform In Transition Countries Increase Child Labor? Evidence From The Republic Of Georgia," Discussion Papers 7147, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Laure Latruffe & Yann Desjeux, 2014. "Perpetuation of subsistence farming in Kosovo: the role of farm integration in input markets," Post-Communist Economies, Taylor & Francis Journals, vol. 26(1), pages 137-148, March.
    2. Momanyi, Denis & Lagat, Prof. Job K. & Ayuya, Dr. Oscar I., 2016. "Analysis of the Marketing Behaviour of African Indigenous Leafy Vegetables among Smallholder Farmers in Nyamira County, Kenya," MPRA Paper 69202, University Library of Munich, Germany, revised 27 Jan 2016.
    3. Takeshima, Hiroyuki & Adeoti, Adetola I. & Salau, Sheu, 2011. "Measuring the effect of transaction costs for investment in irrigation pumps: Application of the unobserved stochastic threshold model to the case of Nigeria," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 6(2), pages 1-26, September.
    4. Takeshima, Hiroyuki, 2008. "Behavior of subsistence producers in response to technological change- The elasticity of cassava production and home consumption in Benin," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6108, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Yao, B. & Shanoyan, A., 2018. "The Use of Mobile Money Application and Smallholder Farmer Market Participation: Evidence form Cote d Ivoire and Tanzania," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277259, International Association of Agricultural Economists.
    6. Mignouna, D.B. & Abdoulaye, T. & Alene, A. & Akinola, A.A. & Manyong, V.M., 2015. "Drivers of Market Participation Decisions among Small-scale Farmers in Yam Growing Areas of Nigeria and Ghana," 2015 Conference, August 9-14, 2015, Milan, Italy 230219, International Association of Agricultural Economists.
    7. Paswel P. Marenya & Christopher B. Barrett, 2009. "Soil quality and fertilizer use rates among smallholder farmers in western Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 40(5), pages 561-572, September.
    8. Rios, Ana R. & Masters, William A. & Shively, Gerald E., 2008. "Linkages between Market Participation and Productivity: Results from a Multi-Country Farm Household Sample," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6145, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Giacomo Zanello & Chittur S. Srinivasan & Bhavani Shankar, 2014. "Transaction Costs, Information Technologies, and the Choice of Marketplace among Farmers in Northern Ghana," Journal of Development Studies, Taylor & Francis Journals, vol. 50(9), pages 1226-1239, September.
    10. Rios, Ana R. & Shively, Gerald E. & Masters, William A., 2009. "Farm Productivity and Household Market Participation: Evidence from LSMS Data," 2009 Conference, August 16-22, 2009, Beijing, China 51031, International Association of Agricultural Economists.
    11. B.C. Okoye & A. Abass & B. Bachwenkizi & G. Asumugha & B. Alenkhe & R. Ranaivoson & R. Randrianarivelo & N. Rabemanantsoa & I. Ralimanana, 2016. "Effect of transaction costs on market participation among smallholder cassava farmers in Central Madagascar," Cogent Economics & Finance, Taylor & Francis Journals, vol. 4(1), pages 1143597-114, December.
    12. Sigei, Geoffrey & Bett, Hillary & Kibet, Lawrence, 2014. "Determinants of Market Participation among Small-scale Pineapple Farmers in Kericho County, Kenya," MPRA Paper 56149, University Library of Munich, Germany.
    13. Salas Garcia, Vania B. & Fan, Qin, 2015. "Information Access and Smallholder Farmers’ Selling Decisions in Peru," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205380, Agricultural and Applied Economics Association.
    14. Abman, Ryan & Lundberg, Clark, 2024. "Contracting, market access and deforestation," Journal of Development Economics, Elsevier, vol. 168(C).
    15. Barrett, Christopher B., 2008. "Smallholder market participation: Concepts and evidence from eastern and southern Africa," Food Policy, Elsevier, vol. 33(4), pages 299-317, August.
    16. Sophia Davidova & Lena Fredriksson & Matthew Gorton & Plamen Mishev & Dan Petrovici, 2012. "Subsistence Farming, Incomes, and Agricultural Livelihoods in the New Member States of the European Union," Environment and Planning C, , vol. 30(2), pages 209-227, April.
    17. Liverpool-Tasie, Lenis Saweda, 2012. "Targeted Subsidies and Private Market Participation: An Assessment of Fertilizer Demand in Nigeria:," IFPRI discussion papers 1194, International Food Policy Research Institute (IFPRI).
    18. Tabe-Ojong, M.P.J. & Mausch, K. & Woldeyohanes, T. & Heckelei, T., 2018. "A Triple-Hurdle Model of the Impacts of Improved Chickpea Adoption on Smallholder Production and Commercialization in Ethiopia," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277287, International Association of Agricultural Economists.
    19. Shilpi, Forhad & Umali-Deininger, Dina, 2007. "Where to sell ? market facilities and agricultural marketing," Policy Research Working Paper Series 4455, The World Bank.
    20. Sheahan, Megan & Black, Roy & Jayne, T.S., 2013. "Are Kenyan farmers under-utilizing fertilizer? Implications for input intensification strategies and research," Food Policy, Elsevier, vol. 41(C), pages 39-52.

    More about this item

    Keywords

    commercialization; market participation; farm output; non-farm income; resource allocation.;
    All these keywords.

    JEL classification:

    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fao:tejade:v:3:y:2006:i:2:p:276-286. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gustavo Anríquez (email available below). General contact details of provider: https://edirc.repec.org/data/faoooit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.