Income Diversity in Rural Lithuania: Benefits, Barriers, and Incentives

Dirk Bezemer (), Jurgita Rutkauskaite and Romualdas Zemeckis
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Jurgita Rutkauskaite: Lithuanian Institute of Agrarian Economics, Vilnuis
Romualdas Zemeckis: Lithuanian Institute of Agrarian Economics, Vilnuis

Development and Comp Systems from EconWPA

Abstract: Economic hardship, agricultural policy reform and price developments have adversely affected incomes from agricultural production in Lithuania, and many farm households have accessed additional sources of income in the rural economy. In an analysis of recently collected survey data we find that non-farm wage employment particularly benefits poorer household, whereas non-agricultural enterprises are more common among higher-income farm households. Such enterprises diminish transaction problems typical for transition economies, allow households to capture more value added than in agricultural production, and create jobs in the local economy. Non-agricultural enterprises are more likely to be found with larger households and in more remote areas. Non-agricultural employment are more important income components for households that have more dependant members, are located in remoter areas, and have less access to economic institutions. We discuss the implications of these findings for the role of rural income diversity in economic regeneration.

Keywords: transition; Lithuania; rural economy; incomes; survey data (search for similar items in EconPapers)
JEL-codes: Q12 R20 O12 O18 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev, nep-eec and nep-geo
Date: 2003-04-14
Note: Type of Document - Microsoft Word; pages: 22

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