HAS DEBT RESTRUCTURING FACILITATED STRUCTURAL TRANSFORMATION ON ISRAELI FAMILY FARMS?

This paper analyzes structural transformation on Israeli family farms using longitudinal village-level data for the years 1992-2001, with particular emphasis on the effects of the 1985 debt crisis and the subsequent 1992 debt settlement legislation. Dynamic panel GMM estimation reveals a negative effect of the amount of debt, and a positive effect of reaching a debt restructuring agreement, on farm size. Reaching an agreement also had an indirect negative effect on the shift to off-farm work. No significant effect was found on farm exits. This implies that the debt restructuring legislation accomplished its goal of rehabilitating the farm sector, at least to some extent.


Issue Date:
2008
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/6255
Total Pages:
23
Series Statement:
Discussion Paper
5.08




 Record created 2017-04-01, last modified 2017-08-23

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