2010 | 5 | 2 | 55-64
Article title

Does Cooperation Pay? The Role of Social Capital among Household Plot Farmers in Ukraine

Title variants
Languages of publication
Social capital matters, not the least in determining individual welfare. It is argued that it functions similar to traditional production factors. However, there are not many empirical analyses about this issue at the farm-household level in general and in post-communist countries in particular. Whether or not social capital affects farm income is tested using micro-data from 255 household plot farmers in Ukraine. The data reflect 23 social capital indicators. These are merged in four separate index variables. The index variables reflect the theoretical dimensions of social capital, namely form, i.e. structural and cognitive, and relationship, i.e. bonding and bridging. By adopting multiple regression analysis, it can be shown that social capital in the form of bridging is indeed a significant factor for determining the level of agricultural income. However, the findings also underline the multidimensional side of social capital. Both bonding and cognitive social capital show no immediate impact on agricultural income among household plot farmers in Ukraine.
Physical description
  • Leibniz Institute of Agricultural Development, Central and Eastern Europe (IAMO)
  • Leibniz Institute of Agricultural Development, Central and Eastern Europe (IAMO)
  • Martin Luther University Halle-Wittenberg
  • Leibniz Institute of Agricultural Development, Central and Eastern Europe (IAMO)
  • Agresti, A. 2002. Categorical Data Analysis, 2nd edition. Wiley Series in Probability and Statistics. New Jersey, Hoboken: John Wiley & Sons Inc.
  • Bourdieu, P. 1983. Ökonomisches Kapital, kulturelles Kapital, soziales Kapital [Economic capital, cultural capital, social capital]. In: Soziale Ungleichheiten [Social Injustices], edited by R. Kreckel, 183-198. Göttingen: Otto Schwarz & Co.
  • Buchenrieder, G., Hanf, J.H. and, A. Pieniadz 2009. 20 Years of transition in the agri-food sector. Agrarwirtschaft 58 (7): 285-293.
  • Buchenrieder, G. and T. Dufhues (Eds.) 2006. Making rural households' livelihoods more resilient - The importance of social capital and the underlying social networks. Studies on the Agricultural and Food Sector in Central and Eastern Europe, Vol. 34. Halle (Saale): Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
  • Chloupkova. J. and, C. Bjornkov 2002. Could social capital help Czech agriculture? Agricultural Economics - Czech 48: 245-9.
  • Coleman, J. S. 1988. Social Capital in the Creation of Human Capital. American Journal of Sociology 94, Supplement: 95-120.
  • Davidova, S., Gorton, M. and, L. Fredriksson 2010. Semi-subsistence farming in Europe: Concepts and key issues. Background paper for the seminar "Semi-subsistence farming in the EU: Current situation and future prospects". Brussels: European Network for Rural Development (ENRD).
  • Doppler, W. 2000. Farming and rural systems - State of the art in research and development. In: Technical and Social Systems Approaches for Sustainable Rural Development, edited by W. Doppler and J. Calatrava, 3-21. Welkersheim: Margraf.
  • Durlauf, S.N. and, M. Fafchamps 2005. Social Capital. In: Handbook of Economic Growth. Volume 1B, edited by P. Aghion and S.N. Durlauf, 1639-99. Amsterdam: Elsevier.
  • Fidrmuc, J. and, K. Gërxhani 2008. Mind the gap! Social capital, East and West. Journal of Comparative Economics 36: 264-86.[WoS][Crossref]
  • Forgacs, C. 2008. Leadership and Importance of Social Capital in Cooperatives during Transition: A Case Study of Two Cooperatives. Journal of Rural Cooperation 36: 57-72.
  • Goetz, S.J. and, A. Rupasingha 2006. Wal-Mart and Social Capital. American Journal of Agricultural Economics 88: 1304-10.[Crossref]
  • Grootaert, C. and, T. van Bastelaer 2002. Introduction and overview. In: The Role of Social Capital in Development. An Empirical Assessment, edited by C. Grootaert and T. van Bastelaer, 1-15. Cambridge: Cambridge University Press.
  • Hudeckova, H. and, M. Lostak 2003. Social capital in the change of Czech agriculture. Agricultural Economics - Czech 49: 301-9.
  • Hübler, O. 1989. Ökonometrie. Stuttgart: Gustav Fischer Verlag.
  • Isham, J., Kelly, T. and, S. Ramaswamy 2002. Social capital and well-being in developing countries: an introduction. In: Social Capital and Economic Development - Well-being in Developing Countries, edited by J. Isham, Kelly, T. and S. Ramaswamy, 3-17. Cheltenham: Edward Elgar.
  • Kasarjyan, M. 2010. Improving the functioning of rural financial markets of Armenia: A social capital perspective. Dissertation. Halle (Saale): Martin-Luther-University Halle-Wittenberg.
  • Krishna, A. and, N. Uphoff 2002. Mapping and measuring social capital through assessment and collective action to conserve and develop watersheds in Rajasthan, India. In: The Role of Social Capital in Development. An Empirical Assessment, edited by C. Grootaert and T. van Bastelaer, 85-124. Cambridge: Cambridge University Press.
  • Lee, J., Arnason, A., Nightingale, A. and Shucksmith, M. 2005. Networking: Social Capital and Identities in European Rural Development. Sociologia Ruralis 45: 269-83.[Crossref]
  • Lerman, Z. and, A. Mirzakhanian 2001. Private Agriculture in Armenia. Lanham MD: Lexington.
  • Lerman, Z., Selik, D., Pugachov, N. and, A. Goucharuk 2007. Rethinking agricultural reform in Ukraine. Halle (Saale): IAMO.
  • Maddala, G.S. 1992. Introduction to Econometrics. 2nd edition. Englewood Cliffs: Prentice Hall.
  • Manski, C. F. 2000. Economic Analysis of Social Interaction. Journal of Economic Perspectives 14: 115-36.[Crossref]
  • Mihaylova, D. 2004. Social Capital in Central and Eastern Europe. A Critical Assessment and Literature Review. Budapest: Center for Policy Studies, Central European University.
  • Narayan, D. and, L. Pritchett 1999. Cents and sociability: household income and social capital in rural Tanzania. Economic Development and Cultural Change 47: 871-897.[Crossref]
  • OANDA 2008: The Currency Site.
  • Portes, A. 1998. Social Capital: Its Origins and Applications in Modern Sociology. Annual Review of Sociology 24: 1-24.[Crossref]
  • Putnam, R. D. 1993. Making Democracy Work: Civic Tradition in Modern Italy. Princeton: University Press.
  • Putnam, R. 2000. Bowling Alone. The Collapse and Revival of American Community. New York: Simon & Schuster.
  • Sabatini, F. 2008. Social Capital and the Quality of Economic Development. Kyklos 61: 466-99.[WoS][Crossref]
  • Slangen, L.H.G., Kooten, G.C. van and, P. Suchńnek 2004. Institutions, social capital and agricultural change in central and eastern Europe. Journal of Rural Studies 20: 245-256.[Crossref]
  • Sporleder, T.L. and, S.Y. Wu 2006. Social capital and vertical ties in agrifood supply chains. Journal on Chain and Network Science 6: 1-7.
  • Uphoff, N. 1999. Understanding Social Capital: Learning from the Analysis and Experience of Participation. In: Social Capital. A Multifaceted Perspective, edited by Dasgupta, P. and I. Serageldin, 215-49. Washington DC: World Bank.
  • Winters, P., Davis, B. and, L. Corral 2002. Assets, activities and income generation in rural Mexico: factoring in social and public capital. Agricultural Economics 27: 139-56.[Crossref]
  • Wolz, A., Fritzsch, J. and, J. Pencakova 2006a. The impact of structural social capital on farm income in the Czech Republic. Agricultural Economics - Czech 52: 281-288.
  • Wolz, A., Fritzsch, J. and, K. Reinsberg 2006b. The impact of social capital on Polish farm incomes: Findings of an empirical survey. Post-Communist Economies 18: 85-99.
  • Woolcock, M. 2002. Social capital in theory and practice: where do we stand? In: Social Capital and Economic Development - Well-being in Developing Countries, edited by J. Isham, Kelly, T. and S. Ramaswamy, 18-39. Cheltenham: Edward Elgar.
Document Type
Publication order reference
YADDA identifier
JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.