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Income diversity in rural Lithuania: benefits, barriers, and incentives

Bezemer, D.J.; (2003) Income diversity in rural Lithuania: benefits, barriers, and incentives. (Economics Working Papers 32). Centre for the Study of Economic and Social Change in Europe, SSEES, UCL: London, UK. Green open access

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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.

Type: Working / discussion paper
Title: Income diversity in rural Lithuania: benefits, barriers, and incentives
Open access status: An open access version is available from UCL Discovery
Publisher version: http://www.ssees.ucl.ac.uk/wp32sum.htm
Language: English
Keywords: Transition, Lithuania, rural economy, incomes, survey data
UCL classification: UCL > Provost and Vice Provost Offices > UCL SLASH > SSEES
URI: https://discovery.ucl.ac.uk/id/eprint/17544
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