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Causes of Efficiency Change in Transition: Theory and Cross-Country Survey Evidence from Agriculture

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  • Johan Swinnen
  • Liesbet Vranken

Abstract

Studies on efficiency changes in transition agriculture yield mixed results. This paper develops both a theoretical model and an empirical analysis of how distribution of efficiency scores changes with the various stages of transition. We use a unique set of representative farm survey data to calculate farm level efficiency scores, compare the efficiency distributions of different transition countries and correlate these with various indicators of particular reforms. Our study indicates that, in particular, general institutional reforms and reforms focused on market institutions and on reducing market imperfections in input and output markets have an important positive impact on farm efficiency.

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File URL: http://www.econ.kuleuven.be/licos/publications/dp/dp172.pdf
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Bibliographic Info

Paper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 17206.

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Length: 31 pages
Date of creation: 2006
Date of revision:
Handle: RePEc:lic:licosd:17206

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Keywords: transition agriculture; production efficiency; reforms;

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References

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  1. Karen Macours & Johan F. M. Swinnen, 2000. "Impact of Initial Conditions and Reform Policies on Agricultural Performance in Central and Eastern Europe, the Former Soviet Union, and East Asia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(5), pages 1149-1155.
  2. Pingali, Prabhu L & Xuan, Vo-Tong, 1992. "Vietnam: Decollectivization and Rice Productivity Growth," Economic Development and Cultural Change, University of Chicago Press, vol. 40(4), pages 697-718, July.
  3. Sedik, David & Trueblood, Michael & Arnade, Carlos, 1999. "Corporate Farm Performance in Russia, 1991-1995: An Efficiency Analysis," Journal of Comparative Economics, Elsevier, vol. 27(3), pages 514-533, September.
  4. 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.
  5. Paul Wilson & Dave Hadley & Stephen Ramsden & Ioannis Kaltsas, 1998. "Measuring and Explaining Technical Efficiency in UK Potato Production," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(3), pages 294-305.
  6. Rizov, Marian & Swinnen, Johan F.M., 2004. "Human capital, market imperfections, and labor reallocation in transition," Journal of Comparative Economics, Elsevier, vol. 32(4), pages 745-774, December.
  7. Erik Mathijs & Liesbet Vranken, 2001. "Human Capital, Gender and Organisation in Transition Agriculture: Measuring and Explaining the Technical Efficiency of Bulgarian and Hungarian Farms," Post-Communist Economies, Taylor & Francis Journals, vol. 13(2), pages 171-187.
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