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1

Farm and Non-farm Incomes of Rural Households in Slovenia Canonical Correlation Analysis

100%
Möllers J., Fritzsch J., Buchenrieder G.
South East European Journal of Economics and Business
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2008
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vol. 3
|
issue 2
39-48
EN
This paper provides an analysis of socio-economic characteristics and their influence on farm and non-farm incomes of rural households in Slovenia. With the canonical correlation analysis we use a methodological approach that offers a true multivariate procedure for both sides of the equation. It thus goes beyond a simple pair-wise correlation analysis and also beyond multiple correlation analysis. This rather rarely used statistical method offers interesting insights into many fields of analytical applications. Our results confirm that rural households usually turn towards non-farm employment if distress-push factors prevail. Besides insufficient farm incomes, large household sizes push households into non-farm diversification. Employment opportunities in the non-farm sector- regardless of whether triggered by distress in the household or demand in the non-farm sector- depend strongly on education.
2

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

100%
Wolz A., Fritzsch J., Buchenrieder G., Nedoborovskyy A.
South East European Journal of Economics and Business
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2010
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vol. 5
|
issue 2
55-64
EN
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.
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