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Farm Restructuring In Kazakhstan: An Institutional Economics Approach

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  • Cormier, Kelley
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    Abstract

    Broad institutional changes, which occurred after Kazakhstan separated from the Soviet Union in 1991, direct performance in the agricultural sector by either creating costs for farmers or shifting costs away. First, the new government called for mass decollectivization that resulted in the emergence of private farm governance structures that were neither financially viable nor efficient. Second, in 1995, a Land Code was established that introduced a system to demarcate collective and state farmland, yet land remains the property of the state. Third, bankruptcy legislation and a rural tax system were designed for the new private farm enterprises. These broad institutional changes resulted in an agricultural sector with high levels of transaction costs and uncertainty for farmers where barter trade predominates on the open market. The problems inherent in the farm restructuring process are largely institutional and therefore lend themselves well to being analyzed within an institutional framework.

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    Bibliographic Info

    Paper provided by Michigan State University, Department of Agricultural, Food, and Resource Economics in its series Agricultural Economic Report Series with number 10949.

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    Date of creation: 2001
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    Handle: RePEc:ags:midaae:10949

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    Keywords: Agricultural and Food Policy; Institutional and Behavioral Economics;

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    1. Heiner, Ronald A, 1983. "The Origin of Predictable Behavior," American Economic Review, American Economic Association, vol. 73(4), pages 560-95, September.
    2. Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-61, October.
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    4. Robison, Lindon J. & Siles, Marcelo E., 2000. "Social Capital: Sympathy, Socio-Emotional Goods, And Institutions," Staff Papers 11819, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    5. Herbert A. Simon, 1991. "Organizations and Markets," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 25-44, Spring.
    6. Williamson, Oliver E., 1987. "Transaction cost economics : The comparative contracting perspective," Journal of Economic Behavior & Organization, Elsevier, vol. 8(4), pages 617-625, December.
    7. Daniel W. Bromley, 1997. "Rethinking Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(5), pages 1383-1393.
    8. Nellis, J., 1999. "Time to Rethink Privatization in Transition Economies?," Papers 38, World Bank - International Finance Corporation.
    9. Englander, Ernest J., 1988. "Technology and Oliver Williamson's transaction cost economics," Journal of Economic Behavior & Organization, Elsevier, vol. 10(3), pages 339-353, October.
    10. Peterson, H. Christopher & Robison, Lindon J. & Siles, Marcelo E., 1999. "The Social Capital Foundations Of Trust In Global Agri-Food System Transactions," Staff Papers 11490, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    11. Stephen Jones, 1996. "Creating Markets: Food Policy and Agricultural Reform in the Transition," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 810-814.
    12. Stanfield, J. David, 1999. "Creation Of Land Markets In Transition Countries: Implications For The Institutions Of Land Administration," Working Papers 12764, University of Wisconsin-Madison, Land Tenure Center.
    13. Anonymous & Delehanty, James M. & Roth, Michael J., 1996. "Land And Agrarian Reform In The Kyrgyz Republic," Research Papers 12757, University of Wisconsin-Madison, Land Tenure Center.
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