An organizational economics approach to the existence of sharecropping
The paper provides a new explanation for the existence of sharecropping in agriculture from the perspective of organizational economics. Similar to a multinational enterprise's decision of whether to enter a joint venture or to choose a wholly owned subsidiary, we can see sharecropping as a joi...
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| Format: | Article |
| Language: | English |
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Czech Academy of Agricultural Sciences
2013-11-01
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| Series: | Agricultural Economics (AGRICECON) |
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| Online Access: | https://agricecon.agriculturejournals.cz/artkey/age-201311-0007_an-organizational-economics-approach-to-the-existence-of-sharecropping.php |
| Summary: | The paper provides a new explanation for the existence of sharecropping in agriculture from the perspective of organizational economics. Similar to a multinational enterprise's decision of whether to enter a joint venture or to choose a wholly owned subsidiary, we can see sharecropping as a joint venture and a fixed rent contract as a wholly owned subsidiary when we stand in the tenant's position. Our analysis shows that when the landlord has a strong enough comparative advantage in exerting one type of effort, he/she tends to choose the share contract. |
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| ISSN: | 0139-570X 1805-9295 |