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Land Markets In Transition: Theory And Evidence From Hungary

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  • Vranken, Liesbet
  • Swinnen, Johan F.M.

Abstract

This paper analyses the determinants of household farms' participation in land markets in transition countries. We derive several hypotheses on the impact of households' management ability, land endowment, land quality and prices, transaction costs in the land market, rural credit and labour market constraints. We test the hypotheses combining a representative dataset on land rental activities of more than 1,400 Hungarian household farms with data from the Hungarian Central Statistical Office. We find that land rental markets reallocate land to households with better farm management capacities and less endowed with land. Households combine buying and renting of land to extend their farms. The continued domination of large farm organizations in some regions restricts household's access to land. Rural credit and labour market imperfections have an important impact on land rental markets.

Suggested Citation

  • Vranken, Liesbet & Swinnen, Johan F.M., 2003. "Land Markets In Transition: Theory And Evidence From Hungary," PRG Working Papers 31880, Katholieke Universiteit Leuven, LICOS - Centre for Institutions and Economic Performance.
    • Handle: RePEc:ags:kuliwp:31880
    DOI: 10.22004/ag.econ.31880
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    References listed on IDEAS

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    1. Swinnen, Johan F. M. & Gow, Hamish R., 1999. "Agricultural credit problems and policies during the transition to a market economy in Central and Eastern Europe," Food Policy, Elsevier, vol. 24(1), pages 21-47, February.
    2. Swinnen, Johan F. M., 2002. "Political reforms, rural crises, and land tenure in western Europe," Food Policy, Elsevier, vol. 27(4), pages 371-394, August.
    3. Rizov, Marian & Gavrilescu, Dinu & Gow, Hamish & Mathijs, Erik & Swinnen, Johan F. M., 2001. "Transition and Enterprise Restructuring: The Development of Individual Farming in Romania," World Development, Elsevier, vol. 29(7), pages 1257-1274, July.
    4. Lerman, Zvi, 2001. "Agriculture in transition economies: from common heritage to divergence," Agricultural Economics, Blackwell, vol. 26(2), pages 95-114, November.
    5. Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-444, June.
    6. Yang Yao, 2000. "The Development of the Land Lease Market in Rural China," Land Economics, University of Wisconsin Press, vol. 76(2), pages 252-266.
    7. Emmanuel Skoufias, 1995. "Household Resources, Transaction Costs, and Adjustment through Land Tenancy," Land Economics, University of Wisconsin Press, vol. 71(1), pages 42-56.
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    Citations

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    Cited by:

    1. Ciaian, Pavel & Swinnen, Johan F.M., 2006. "AJAE Appendix: Land Market Imperfections and Agricultural Policy Impacts in the New EU Member States: A Partial Equilibrium Analysis," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 88(4), pages 1-10, November.
    2. Scott Rozelle & Johan F.M. Swinnen, 2004. "Success and Failure of Reform: Insights from the Transition of Agriculture," Journal of Economic Literature, American Economic Association, vol. 42(2), pages 404-456, June.
    3. Biro, Szabolcs, 2008. "The Hungarian land market after EU Accession," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 107, pages 1-18, March.
    4. Ciaian, Pavel & Swinnen, Johan F.M., 2005. "Market Imperfections and Agricultural Policy Effects on Structural Change and Competitiveness in an Enlarged EU," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24463, European Association of Agricultural Economists.
    5. Sergey Vinogradov & Mária Fekete-Farkas & Zsuzsanna Tóth-Naár, 2014. "Impacts Of Direct Payments On Indicators Of Agricultural Land Market In Hungary," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 8(1), pages 683-689.
    6. Falkowski, Jan, 2005. "Key Determinants of Land Rentals in Poland," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24511, European Association of Agricultural Economists.

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