Effects of the current financial and economic crisis on the rural landscape as well as the agri-food sector in Europe and Central Asia

This paper reviews the expected effects of the current financial crisis and subsequent recession on the rural landscape, in particular the agri-food sector in Europe and Central Asia (ECA) on the basis of the structure of the rural economy and of different organisations and institutions. Empirical evidence suggests that the crisis has hit the ECA region the hardest. Agriculture contributes about 9% to gross domestic product (GDP) for the ECA region as a whole with 16% of the population being employed in the agricultural sector. As far as the impact of the financial crisis on the agri-food sector is concerned, there are a few interconnected issues: (1) reduction in income elastic food demand and commodity price decline, (2) loss of employment and earnings of rural people working in urban centres, implying also costly labour reallocation, (3) rising rural poverty originating mainly from lack of opportunities in the non-farm sector and a sizable decline of international remittances, (4) tightening of agricultural credit markets, and the (5) collapse of sectoral government support programs and social safety-net measures in many countries. The paper reveals how the crisis hit farming and broader agri-business differently in general and in the ECA sub-regions.

An Exploratory Study on the Role of Familiarity in Product Evaluations

There is growing interest among researchers working in the areas of product-country image effects, and more generally international consumer behaviour, in the potential relationship between consumers’ familiarity with, and evaluation of, products from various countries. We use data from a consumer survey in Hungary to attempt an initial exploration of this relationship. The data support findings from earlier similar studies but also suggest that affective considerations may be playing a considerable role in the evaluations of domestic products, and that the relationship of familiarity with product evaluations may vary significantly from country to country and may not be as strong as previously thought.