Judith Möllers

Who Remits More? Who Remits Less? Evidence from Kosovar Migrants in Germany and Their Households of Origin

The prevalence of subsistence-oriented farming and the scarcity of non-farm employment make migration a common livelihood strategy in rural Kosovo. Consequently, many households rely heavily on remittances. Although migrants themselves often struggle to finance their everyday lives in their host countries, remittances continue to flow. As almost all migrants remit, it is required that the level of remittances be monitored and the factors determining the absolute amount of remittances to the home country be known. There are three overarching determinants: the connection between the migrant and the household of origin, the need for financial support of the household of origin and the financial means of the migrant. This contribution draws on an original, detailed and very recent database collected using an innovative survey design. It provides significant insights into the country- and culture-specific driving forces behind remittances from Germany to Kosovo.

FARM AND NON-FARM INCOMES OF RURAL HOUSEHOLDS IN SLOVENIA CANONICAL CORRELATION ANALYSIS

Farm and Non-farm Incomes of Rural Households in Slovenia Canonical Correlation Analysis This paper provides an analysis of socio-economic characteristics and their influence on farm and non-farm incomes of rural households in Slovenia. With the canonical correlation analysis we use a methodological approach that offers a true multivariate procedure for both sides of the equation. It thus goes beyond a simple pair-wise correlation analysis and also beyond multiple correlation analysis. This rather rarely used statistical method offers interesting insights into many fields of analytical applications. Our results confirm that rural households usually turn towards non-farm employment if distress-push factors prevail. Besides insufficient farm incomes, large household sizes push households into non-farm diversification. Employment opportunities in the non-farm sector- regardless of whether triggered by distress in the household or demand in the non-farm sector- depend strongly on education.

Individual farm exit decisions in Croatian family farms

Successful structural change in agriculture depends on several preconditions, some of which are only indirectly linked to the farming sector. The rural non-farm economy is known as one important driver of structural change because it offers alternative employment. However, little is known about the factors that influence farm exit decisions. Based on a recent household survey of Croatian family farms, we analyse individual employment decisions of farm household members by taking a prospective look at developments to come in the medium term. We find that mixed activities and part-time farming will be at the core of expected future developments. A cumulative logit regression model is employed, showing that steps toward individual farm exit are least likely for elderly people and for those in households that are particularly successful in farming. Individual exit is more likely for better-off households. Generally, we find that there is a clear trend toward non-farm employment for individuals, but there are hardly any indications that this leads to final abandonment of the farm.

Cognitive Constructs and the Intention to Remit

Abstract This paper explores migrants’ motivations to remit from a new, behavioural (cognitive) perspective, based on Structural Equation Modelling. We supplement the mainstream economic analyses of migrants’ observed characteristics by analysing remitting behaviour based on the Theory of Planned Behaviour (TPB). With this behavioural lens, we show that non-tangible, cognitive constructs are highly relevant in explaining the intention to remit. Results underline the fact that migrants’ attitudes and norms, the latter in particular driven by the family, are decisive for remitting. Classical socioeconomic variables also show significant results, but contribute comparatively little to explaining the intention to remit.

The effects of migration on poverty and inequality in rural Kosovo

The economic wellbeing of a large number of rural Kosovar families depends heavily on migrants’ remittances. This paper aims at analysing the impact of migration on rural poverty and inequality in Kosovo. It draws on the 2009 nationally representative Kosovo Remittance Study. Analyses are based on a comparison with counterfactual migrant household incomes derived from Propensity Score Matching. We find that remittances have no impact on the extremely poor, but lift around 40% of migrant households above the vulnerability threshold. Gini coefficients show a tendency to increase due to migration. Determinants of different outcomes of migration are explored in a logit regression on migration success. Household and income structure as well as education play a role in how migrant households climb up the income ladder.JELF22, F24, O15, P36

Does the EU LEADER Instrument Support Endogenous Development and New Modes of Governance in Romania?: Experiences from Elaborating an MCDA Based Regional Development Concept

The well-known EU LEADER programme aims at using the endogenous potential of rural regions and at improving local governance. Especially since the current funding period doubts are rising about whether the programme actually delivers what it promises. Indeed, translating the LEADER approach is a challenge, not only for new EU member states. This paper looks at the case of post-socialist Romania where the programme is implemented for the first time. Our research questions are (a) in how far an endogenous approach can be practically implemented by local initiatives and (b) how the LEADER implementation contributes to the adoption of new modes of governance. We draw on a case study in which a potential Romanian Local Action Group has been externally supported in elaborating a Regional Development Concept. We observed the participatory decision-making process among local actors, which was facilitated by a Multiple Criteria Decision Analysis (MCDA). MCDA turned out to be instrumental for integrated planning approaches and transparent decision-making with broad public participation. Our results underline that endogenous development and new modes of governance are hampered by provisions of superior administrative bodies due to inadequate translation of the policy instrument’s intervention logic. Reviewing European and national LEADER guidelines seems important for better using the endogenous regional potential and reaching higher positive impact on local governance structures.

EU-wide networking: an instrumental valuable for European rural development policies in Romania?

EU-wide networking: an instrumental valuable for European rural development policies in Romania? This paper examines the relevance of networking as an instrument for implementing European rural development policies. The LEADER programme of the European Union (EU) supports partnerships and networking within and between rural regions in the EU and aims at advancing rural, regional socio-economic development. LEADER and the establishment of the European and National Networks for Rural Development, respectively, are discussed using the example of the case of Romania, where these measures are currently implemented. The discussion is primarily based on results of 2008 surveys among various stakeholders involved in LEADER in Romania, Hungary and Germany. We conclude that networking is a key factor for successfully implementing rural development policies. This is due to benefits resulting from the exchange of experiences or partnerships, but also due to social control - a hidden effect of networking. Dieser Beitrag befasst sich mit der Bedeutung von Netzwerken als Instrument zur Umsetzung der europäischen Politik zur Entwicklung des Ländlichen Raums. Durch das EU-Programm LEADER werden Partnerschaften und Netzwerkaktivitäten in und zwischen ländlichen Regionen unterstützt mit dem Ziel einer Förderung ihrer sozioökonomischen Entwicklung. LEADER sowie der Aufbau des Europäischen und des Nationalen Netzwerks für den Ländlichen Raum werden im Hinblick auf die Situation in Rumänien diskutiert, wo derzeit diese Maßnahmen eingeführt werden. Der Beitrag stützt sich vor allem auf Ergebnisse von im Jahr 2008 durchgeführten Umfragen unter am LEADER Programm beteiligten Personen in Rumänien, Ungarn und Deutschland. Es zeigt sich, dass Netzwerke ein Schlüsselfaktor für die Implementierung ländlicher Entwicklungspolitik sind. Es spielt dabei nicht nur der erwartete Nutzen durch Erfahrungsaustausch und Partnerschaften eine Rolle, sondern auch soziale Kontrolle, welche als verdeckter Effekt von Netzwerken zu sehen ist.

Why (not) cooperate? A cognitive model of farmers’ intention to join producer groups in Romania

ABSTRACT After the breakdown of the communist regime in Romania, collective farms were replaced by a large number of small-scale private farms. Although cooperation seems to be a favourable choice for these smallholders, it did not develop as perhaps expected. This article explores the factors that determine the formation of the intention of Romanian vegetable farmers to join marketing cooperatives in the form of so called producer groups. Our theoretical framework refers to Ajzen’s Theory of Planned Behaviour, which we model with a structural equation model. We identified as main intention drivers the expectation for better prices and easier access to capital. Perceived family support is another significant factor. The level of distrust is high. Although our trust variable is not significant as a predictor of the intention to cooperate in the model, we find qualitative indications that trust plays a role when the intention is translated into actual behaviour.

CORRUPTION PERCEPTIONS AND ENTREPRENEURIAL INTENTIONS IN A TRANSITIONAL CONTEXT–THE CASE OF RURAL BULGARIA

In this study, we augment Ajzen’s Theory of Planned Behavior (TPB) with an institutional embeddedness logic to develop and test a mediated model of the effects of perceived corruption on attitudes, social norms and perceived behavioral control, which in turn determine entrepreneurial intentions. We test our three hypotheses on a sample of 231 aspiring entrepreneurs seeking to start a non-farm business in three rural regions of Bulgaria. In our exploratory case study, we find that corruption perceptions are partially mediated by entrepreneurial attitudes and perceived control, but not by social norms. Corruption perceptions are positively associated with entrepreneurial intentions, indicative of the deeply rooted social acceptance of corruption in many transition economies. Theoretical, practitioner and public policy implications are discussed.

Post-Communist Rural Entrepreneurship in Bulgaria

Abstract Purpose This chapter takes a qualitative snapshot of rural entrepreneurs in Bulgaria. The aim is to shed light on the formation of non-farm start-up intentions in rural post-communism communities. Methodology A qualitative ethnographical methodological approach centred on a theoretical framework, based on Ajzen’s (1991) Theory of Planned Behaviour. Primary survey data are drawn from the village of Kostandovo, in the Pazardjik region of Bulgaria. Findings A holistic perspective reveals entrepreneurship to be just one facet of complex rural livelihood strategies. Distrust in formal institutions by rural entrepreneurs dominates the Bulgarian business climate. A culture of informality in business is accompanied by widely accepted corruption. Crucial factors affecting the start-up decision in post-communist economies are social capital, a lack of experience of the entrepreneurs, and by public administrators. Practical implications The presented evidence highlights different dimensions of the theoretical constructs. Future research could focus on the impact of inefficient/corrupt institutions on the decisions of potential rural entrepreneurs. Originality/value By coupling universally applicable intention predicting theory with unique ethnographic evidence, the chapter gives a face of the otherwise abstract entrepreneurial agents. The perceptual perspective tackles the most relevant start-up aspects of the post-communist context, providing insights applicable beyond the case country.