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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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Suggested Citation

  • Johan Swinnen & Liesbet Vranken, 2006. "Causes of Efficiency Change in Transition: Theory and Cross-Country Survey Evidence from Agriculture," LICOS Discussion Papers 17206, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  • Handle: RePEc:lic:licosd:17206
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    File URL: http://www.econ.kuleuven.be/licos/publications/dp/dp172.pdf
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    References listed on IDEAS

    as
    1. Johan F. M. Swinnen & Liesbeth Dries & Karen Macours, 2005. "Transition and agricultural labor," Agricultural Economics, International Association of Agricultural Economists, vol. 32(1), pages 15-34, January.
    2. 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.
    3. Hamish R. Gow & Johan F. M. Swinnen, 2001. "Private Enforcement Capital and Contract Enforcement in Transition Economies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 686-690.
    4. Dries, Liesbeth & Swinnen, Johan F. M., 2002. "Institutional Reform and Labor Reallocation During Transition: Theory Evidence From Polish Agriculture," World Development, Elsevier, vol. 30(3), pages 457-474, March.
    5. 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.
    6. 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.
    7. 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.
    8. Dries, Liesbeth & Swinnen, Johan F. M., 2004. "Foreign Direct Investment, Vertical Integration, and Local Suppliers: Evidence from the Polish Dairy Sector," World Development, Elsevier, vol. 32(9), pages 1525-1544, September.
    9. Erik Mathijs & Johan F. M. Swinnen, 2001. "Production Organization And Efficiency During Transition: An Empirical Analysis Of East German Agriculture," The Review of Economics and Statistics, MIT Press, vol. 83(1), pages 100-107, February.
    10. Gow, Hamish R & Swinnen, Johan F M, 1998. "Up- and Downstream Restructuring, Foreign Direct Investment, and Hold-Up Problems in Agricultural Transition," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 25(3), pages 331-350.
    11. 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.
    12. Karen Macours & Johan F. M. Swinnen, 2005. "Agricultural Labor Adjustments in Transition Countries: The Role of Migration and Impact on Poverty ," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(3), pages 405-411.
    13. 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.
    14. 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, September.
    15. Csaki, Csaba & Lerman, Zvi, 1997. "Land Reform and Farm Restructuring in East Central Europe and CIS in the 1990s: Expectations and Achievements after the First Five Years," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 24(3-4), pages 428-452.
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    Cited by:

    1. Elodie Douarin & Laure Latruffe, 2011. "Potential impact of the EU Single Area Payment on farm restructuring and efficiency in Lithuania," Post-Communist Economies, Taylor & Francis Journals, vol. 23(1), pages 87-103.
    2. Rizov, Marian, 2008. "Institutions, reform policies, and productivity growth in agriculture: Evidence from former communist countries," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 55(4), pages 307-323.

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    Keywords

    transition agriculture; production efficiency; reforms;
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