Neo-institutional Analysis of Land-lease Relations in the Framework of the Existing Land Fragmenation in Bulgaria
2009
Dirimanova, V. (Agricultural University, Plovdiv (Bulgaria))
Fragmentation in land use and co-ownership in Bulgaria hinders the production processes in agriculture and land contracting between owners and farmers. The main hypothesis of the paper is that the fragmented land generates high exchanging costs for owners and tenants. For this purpose the paper focus on contractual arrangements between land owners and agricultural producers in three regions of Bulgaria with different levels of land fragmentation - low, average and high. The findings of the investigation show that increased land fragmentation lead to contracts with low rents and to many informal and short-term contracts. Rented land in the country appears as more preferred form for transaction than sale land transactions.
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