Farm Output, Non-Farm Income, and Commercialization in Rural Georgia

Iddo Kan, Ayal Kimhi and Zvi Lerman

eJADE: electronic Journal of Agricultural and Development Economics, 2006, vol. 03, issue 2, 11

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.

Keywords: Agricultural Finance; Farm Management (search for similar items in EconPapers)
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ejade1:112608

DOI: 10.22004/ag.econ.112608

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