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Transaction costs, product specialisation and farm structure in Central and Eastern Europe

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  • Pavel Ciaian
  • Jan Pokrivcak
  • Dusan Drabik

Abstract

In Western Europe, the USA and other developed countries agriculture is dominated by small family farms. In Central and Eastern European countries (CEECs) a dual structure of farms exists. There are large corporate farms (CF) and small family farms (FF) in CEECs. This article shows that both CF and FF specialise in commodities in which they have a comparative advantage. CF specialise in capital-intensive products and in products with low labour monitoring requirements. FF specialise in products with higher labour monitoring requirements. The implication of this study is that farm structure indirectly determines in which products a country will be competitive on international markets. This is especially important for transition countries where high transaction costs hinder changes of farm organisation. Because of high transaction costs, farms are more flexible in adjusting production structure than adjusting farm organisation in transition countries.

Suggested Citation

  • Pavel Ciaian & Jan Pokrivcak & Dusan Drabik, 2009. "Transaction costs, product specialisation and farm structure in Central and Eastern Europe," Post-Communist Economies, Taylor & Francis Journals, vol. 21(2), pages 191-201.
    • Handle: RePEc:taf:pocoec:v:21:y:2009:i:2:p:191-201
    DOI: 10.1080/14631370902778526
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    References listed on IDEAS

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    1. Mathijs, Erik & Vranken, Liesbet, 2000. "Farm Restructuring And Efficiency In Transition: Evidence From Bulgaria And Hungary," 2000 Annual meeting, July 30-August 2, Tampa, FL 21886, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    Cited by:

    1. Lancaric, Drahoslav & Tóth, Marián & Savov, Radovan, 2013. "Which legal form of agricultural firm based on return on equity should be preferred? A panel data analysis of Slovak agricultural firms," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 115(3), pages 1-2, December.
    2. Záhorský, T. & Pokrivčák, J., 2017. "Assessment of the Agricultural Performance in Central and Eastern European Countries," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 9(1), March.
    3. Ciaian, Pavel & Kancs, d'Artis & Pokrivcak, Jan, 2011. "Comparative Advantages, Transaction Costs and Factor Content in Agricultural Trade: Empirical Evidence from the CEE - Vantaggi comparati, costi di transazione e contenuto dei fattori nel commercio agr," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 64(1), pages 67-101.
    4. Bachev, Hrabrin, 2022. "A framework for assessing the governance efficiency of agricultural farms," MPRA Paper 113696, University Library of Munich, Germany.
    5. Radovan Savov & Juraj Cheben & Drahoslav Lancaric & Roman Serencéš, 2017. "MBNQA Approach in Quality Management Supporting Sustainable Business Performance in Agribusiness," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 19(44), pages 1-11, February.
    6. Toth, Marian & Lancaric, Drahoslav & Savov, Radovan, 2014. "Which legal form is a key to success in Slovak agriculture?," 142nd Seminar, May 29-30, 2014, Budapest, Hungary 169091, European Association of Agricultural Economists.
    7. Bachev, Hrabrin, 2022. "Как Да Оценим Управленческата Ефективност На Българските Земеделски Стопанства [How to assess the governance efficiency of Bulgarian agricultural farms]," MPRA Paper 113590, University Library of Munich, Germany.
    8. Ján Pokrivčák & Pavel Ciaian & Dušan Drabik, 2019. "Perspectives of Central and Eastern European Countries on Research and Innovation in the New CAP," EuroChoices, The Agricultural Economics Society, vol. 18(1), pages 26-32, April.
    9. Hrabrin BACHEV, 2022. "An Approach To Understanding And Assessing The Governance Efficiency Of Agricultural Enterprises," Economic Archive, D. A. Tsenov Academy of Economics, Svishtov, Bulgaria, issue 2 Year 20, pages 21-38.

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