HAS DEBT RESTRUCTURING FACILITATED STRUCTURAL TRANSFORMATION ON ISRAELI FAMILY FARMS?

Ayal Kimhi

No 6255, Discussion Papers from Hebrew University of Jerusalem, Department of Agricultural Economics and Management

Abstract: This paper analyzes structural transformation on Israeli family farms using longitudinal village-level data for the years 1992-2001, with particular emphasis on the effects of the 1985 debt crisis and the subsequent 1992 debt settlement legislation. Dynamic panel GMM estimation reveals a negative effect of the amount of debt, and a positive effect of reaching a debt restructuring agreement, on farm size. Reaching an agreement also had an indirect negative effect on the shift to off-farm work. No significant effect was found on farm exits. This implies that the debt restructuring legislation accomplished its goal of rehabilitating the farm sector, at least to some extent.

Keywords: Agricultural; Finance (search for similar items in EconPapers)
Pages: 23
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ageconsearch.umn.edu/record/6255/files/5.08.pdf (application/pdf)

Related works:
Working Paper: Has Debt Restructuring Facilitatead Structural Transformation on Israeli Family Farms? (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:huaedp:6255

DOI: 10.22004/ag.econ.6255

Access Statistics for this paper

More papers in Discussion Papers from Hebrew University of Jerusalem, Department of Agricultural Economics and Management Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().