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Abstract

With the change of the political regime in Central and Eastern Europe, both managers of corporate farms and newly established private farmers had to adjust to the rules of the market economy. Among both groups, some are economically more successful than others. In general, a varying adoption of production factors is identified as being of influence. Whether their ability to collaborate with other farms is an additional factor which has been discussed under the concept of social capital since quite some time will be analyzed in this paper. Based on the findings of a survey among a sample of 62 farms in the Czech Republic it can be shown by adopting factor and multiple regression analysis that social capital is indeed a significant factor determining the level of agricultural income.

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