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Viticulture productivity and land inequality in Croatia

This paper examines the relationship of land distribution and viticulture productivity across counties in Croatia by utilizing data on the distribution of operational family farm size within counties calculated by the Agricultural Survey (2003). The negative relationship between overall land distribution and agricultural productivity is consistent with the productivity advantages of farms operated primarily with family labor, something documented by several lines of research. A number of authors (Johnston & Kilby 1975, Johnston & Clark 1982, Tomich, Kilby & Johnston 1995) examined the variability between unimodal (or equitable) and bimodal (or unequal) agrarian structures among countries. The aim of the paper was to analyze quantitatively production characteristics of viticulture output per hectare based on Cobb-Douglas production function augmented by Gini coefficient and family farm holding size. Obtained elasticity’ s results were estimated by OLS estimation. This paper has quantified the effect of land distribution on cross-county viticultural productivity by using statistical data regarding the Gini coefficient for the size of operational land in use holdings within counties. The distribution of land among family holdings is computed by Gini coefficients for the size distribution of land within 21 Croatia's counties and Zagreb city using data about land size in ha weighted by distinctive cohort variability (from category less than 1.5 ha to over 20 ha). Our results show that the Gini coefficient and the diversity of viticulture productivity degree across counties were in a significant negative relationship. This effect persists even after controlling for, first land in use as a proxy for family holding size, and second for inputs use as a the capital– labor ratio. These results support our hypothesis on the advantages of unimodal or broad-based distributions of plough land in the oligopolistic structure of viticultural production within Croatia.

viticulture; land distribution; gini coefficient; OLS estimation; Croatia

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