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Technological progress and efficiency change In Hungarian Agriculture

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  • Fekete-Farkas, Maria
  • Szucs, Istvan
  • Varga, Tibor
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    Abstract

    Hungary became the member of European Union in 2004. The authors want to show that, though, many sectors of Hungarian agriculture have been operating at low level of technology and efficiency; there was a big expectation about the fast catching up with accession to European Union. This paper investigates the effect of EU membership on the productivity performance of Hungarian agriculture based on the years 2005 and 2009 using Data Envelopment Analyses and Malmquist index. The analysis showed that there were considerable reserves of efficiency in the presented two main branches (wheat and pig fattening) of the Hungarian agriculture, and the reserves slightly decreased in wheat production, but they increased in the pig sector by EU accession. The implication for agricultural reform of future productivity growth has also been assessed.

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    Bibliographic Info

    Paper provided by International Association of Agricultural Economists in its series 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil with number 126120.

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    Date of creation: 20 Aug 2012
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    Handle: RePEc:ags:iaae12:126120

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    Web page: http://www.iaae-agecon.org/
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    Keywords: total factor productivity; agriculture; EU membership; Agricultural and Food Policy; Crop Production/Industries; Farm Management; Production Economics; Productivity Analysis; Research Methods/ Statistical Methods; D24; Q16;

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    1. Balcombe, Kelvin George & Davidova, Sophia & Latruffe, Laure, 2005. "Productivity Change in Polish Agriculture: An Application of a Bootstrap Procedure to Malmquist Indices," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24572, European Association of Agricultural Economists.
    2. Kawagoe, Toshihiko & Hayami, Yujiro & Ruttan, Vernon W., 1985. "The intercountry agricultural production function and productivity differences among countries," Journal of Development Economics, Elsevier, vol. 19(1-2), pages 113-132.
    3. Carter Colin A. & Zhang Bin, 1994. "Agricultural Efficiency Gains in Centrally Planned Economies," Journal of Comparative Economics, Elsevier, vol. 18(3), pages 314-328, June.
    4. Fogarasi, Jozsef & Latruffe, Laure, 2007. "Technical efficiency and technology in Eastern and Western agriculture: A comparison of crop and dairy farms in Hungary and France," 104th Seminar, September 5-8, 2007, Budapest, Hungary 7810, European Association of Agricultural Economists.
    5. Bernhard Br�mmer & Thomas Glauben & Geert Thijssen, 2002. "Decomposition of Productivity Growth Using Distance Functions: The Case of Dairy Farms in Three European Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 628-644.
    6. V. Ball & Jean-Christophe Bureau & Jean-Pierre Butault & Richard Nehring, 2001. "Levels of Farm Sector Productivity: An International Comparison," Journal of Productivity Analysis, Springer, vol. 15(1), pages 5-29, January.
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