Family farm versus industrial farm?
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The literature on the agricultural transformation in Central and Eastern European countries usually neglect the investigation of organizational forms in agriculture. This paper is the first to analyze the choice of organization forms in transition agriculture employing transaction cost theory. The analysis is based on Hungarian FAUN data in 2003. In general, our results do not support the theoretical predictions on the choice of farm organization, but confirm the differences in capital level and farm area observed in different farm organizations. The divergence between tbeory and empirics shed light on the importance of further research in explaining farm organizations.
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