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Czech Agricultural Associations and the Impact of Membership on Farm Efficiency

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  • Bavorova, Miroslava
  • Curtiss, Jarmila
  • Jelinek, Ladislav

Abstract

The study investigates the efficiency effect of affiliation with the two strongest associations in Czech agriculture. These represent large-scale enterprises and individual farmers, respectively. The efficiency analysis is supplemented by analyses of incentives for associations' membership and farm characteristics decisive for membership choice. The results imply that political lobbying is the main entry incentive. Commercially-oriented individual farms which employ external workers are more likely to choose association membership, as are agricultural enterprises that specialize in livestock production or preserve a high share of employee ownership. We find that association membership has a significant positive impact on farms' performance, especially among individual farms. Non-members represent a more heterogeneous group. Nevertheless, the best non-members are able to achieve the production potential of association members.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 94th Seminar, April 9-10, 2005, Ashford, UK with number 24430.

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Date of creation: 2005
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Handle: RePEc:ags:eaae94:24430

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Related research

Keywords: Associations; agricultural enterprises; Czech agriculture; incentives; individual farms; technical efficiency; stochastic frontier analysis; transition; Farm Management;

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  1. Paldam, M. & Svendsen, G.T., 2000. "Missing Social Capital and the Transition in Eastern Europe," Papers 00-5, Aarhus School of Business - Department of Economics.
  2. 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.
  3. Battese, George E. & Corra, Greg S., 1977. "Estimation Of A Production Frontier Model: With Application To The Pastoral Zone Of Eastern Australia," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 21(03), December.
  4. Potters, Jan & Sloof, Randolph, 1996. "Interest groups: A survey of empirical models that try to assess their influence," European Journal of Political Economy, Elsevier, vol. 12(3), pages 403-442, November.
  5. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
  6. Leff, Nathaniel H, 1978. "Industrial Organization and Entrepreneurship in the Developing Countries: The Economic Groups," Economic Development and Cultural Change, University of Chicago Press, vol. 26(4), pages 661-75, July.
  7. Knack, Stephen & Keefer, Philip, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1251-88, November.
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