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The Choice of Farm Organization. A Hungarian Case

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  • Ferto, Imre
  • Fogarasi, Jozsef

Abstract

The literature on the agricultural transformation in Central an Eastern European countries usually neglect the investigation of organizational forms in agriculture. This paper is the first to analyze the choice of organization forms in transition agriculture employing transaction cost theory. The analysis is based on Hungarian FADN data in 2003. In general, our results do not support the theoretical predictions on the choice of farm organization, but confirm the differences in capital level and farm area observed in different farm organizations. The divergence between theory and empirics shed light on the importance of path dependency in explaining of farm organizations.

Suggested Citation

  • Ferto, Imre & Fogarasi, Jozsef, 2005. "The Choice of Farm Organization. A Hungarian Case," 2005 Annual meeting, July 24-27, Providence, RI 19463, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea05:19463
    DOI: 10.22004/ag.econ.19463
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    8. Schmitt, Gunther, 1991. "Why Is the Agriculture of Advanced Western Economies Still Organized by Family Farms? Will This Continue to Be So in the Future?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 18(3-4), pages 443-458.
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    10. Gorton, Matthew & Davidova, Sophia, 2004. "Farm productivity and efficiency in the CEE applicant countries: a synthesis of results," Agricultural Economics, Blackwell, vol. 30(1), pages 1-16, January.
    11. Erik Mathijs & Liesbet Vranken, 2001. "Human Capital, Gender and Organisation in Transition Agriculture: Measuring and Explaining the Technical Efficiency of Bulgarian and Hungarian Farms," Post-Communist Economies, Taylor & Francis Journals, vol. 13(2), pages 171-187.
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    15. Evenson, Robert E. & Kimhi, Ayal & Desilva, Sanjaya, 2000. "Supervision And Transaction Costs: Evidence From Rice Farms In Bicol, The Philippines," 2000 Annual meeting, July 30-August 2, Tampa, FL 21788, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    Cited by:

    1. Cristina Salvioni & Laura Aguglia & Patrizia Borsotto, 2011. "Proprietary and Corporate Structures in Italian Agriculture," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 1, March.
    2. Gardner, Bruce L. & Lerman, Zvi, 2006. "Agricultural Cooperative Enterprise in the Transition from Socialist Collective Farming," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 34(1), pages 1-18.

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    Keywords

    Farm Management;

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