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

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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
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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.
2

Bio-energy and Rural Development: Findings from a Comparative Study in Central, Eastern and Southern Europe

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Wolz A., Buchenrieder G., Márkus R.
South East European Journal of Economics and Business
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2011
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vol. 6
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issue 2
7-16
EN
Rising energy prices for fossil fuels, the unreliable supply of energy imports during recent winters, and European Union (EU) policies have stimulated national awareness and political action on renewable bio-energy among all of the European countries. In discussions on agricultural policy, renewable energy has been advocated as a way to more rural prosperity. In this paper, we assess whether there is any impact on agricultural and rural employment and income as anticipated. Among the new member states (NMS) of the EU, the share of bio-energy is slowly increasing. Yet among the Balkan states and Turkey this process has just started. In both sub-regions an expansion of rape seed cultivation, and to a smaller extent of the production of wood pellets, could be observed. Similarly, the build-up of processing facilities is in its infancy. Up to now, however, its overall impact on agricultural and rural income and employment seems to have been marginal.
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