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Abstract

In the course of transition, the role of household plots in agricultural production in Ukraine has grown substantially in importance. The key reason for this is the integration of household plots into large agricultural enterprises. The purpose of this paper is to analyse the economic efficiency of household plots. In addition, the paper aims at testing whether economic theory is able to explain the behaviour of households in this regard. Two important characteristics in the evolution of household plots’ in Ukraine have been identified. One is the integration of household plots into large agricultural enterprises. This improves the efficiency of these plots through access to inputs. The other is that about 22.4 % of household plots farmers, who also worked in the large agricultural enterprises are planning to expand their operation. Although the theories presented in the paper greatly contribute to the explanation of household plots’ behaviour, more research must be done to better explain the reasons for households’ economic activity.

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