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Impact of public subsidies on farms’ technical efficiency in New Member States before and after EU accession

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Author Info
Latruffe, L.
Bakucs, L.
Bojnec, S.
Ferto, I.
Fogarasi, J.
Gavrilescu, C.
Jelinek, L.
Luca, L.
Medonos, T.
Toma, C.

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Abstract

This paper presents some results of a twoyear (2006-2007) research project supported by the French Ministry of Research’s funding program ECONET. One of the project’s objectives was to investigate the determinants of farm technical efficiency in New Member States before and after accession to the European Union, and in particular the role of public subsidies on this performance variable. Four countries were considered: Hungary, the Czech Republic and Slovenia, who acceded to the EU in 2004, and Romania, whose accession was in 2007. The study found that subsidies had a negative impact on farm technical efficiency in Hungary over the period 2001-2005, in the Czech dairy corporate sector over the period 2000-2004, in Slovenia over the period 1994-2003, and in the Romanian crop sector in 2005.

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Publisher Info
Paper provided by European Association of Agricultural Economists in its series 2008 International Congress, August 26-29, 2008, Ghent, Belgium with number 44142.

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Date of creation: 2008
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Handle: RePEc:ags:eaae08:44142

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Related research
Keywords: technical efficiency; farms; subsidies; Hungary; Czech Republic; Slovenia; Romania; Farm Management;

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References listed on IDEAS
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  1. Rezitis, Anthony N. & Tsiboukas, Kostas & Tsoukalas, Stauros, 2003. "Investigation of Factors Influencing the Technical Efficiency of Agricultural Producers Participating in Farm Credit Programs: The Case of Greece," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 35(03), December. [Downloadable!]
  2. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November. [Downloadable!] (restricted)
  3. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
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