The performance of Bulgarian food markets during reform
AbstractFood policy often depends on markets and markets depend on institutions. But how good do institutions have to be before reforms can be launched? Relying on well timed surveys of agricultural prices and a joint study by the Government of Bulgaria and the World Bank on agricultural market institutions, this paper presents evidence that performance in food markets improved following significant policy reforms in Bulgaria, although public institutions remained weak. This suggests that even though strong institutions are preferred to weak ones, it can be costly and impractical to delay policy reforms until work on strengthening institutions is finished. Still, measured performance varied by place and by commodity, suggesting that markets developed at different tempos and that the distribution of benefits from improved markets was uneven. This points to the need to address the costs of adjustment as policies change. The paper introduces a new approach to measure market performance based on composite-error techniques.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 4876.
Date of creation: 01 Mar 2009
Date of revision:
Markets and Market Access; Transport Economics Policy&Planning; Economic Theory&Research; Access to Markets; Agribusiness;
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mergos, G. & Stoforos, C. & Mishev, P. & Ivanova, N., 2001. "Analysing agricultural policy reforms under transition in Bulgaria," Food Policy, Elsevier, Elsevier, vol. 26(5), pages 475-493, October.
- Lerman, Zvi, 2001. "Agriculture in transition economies: from common heritage to divergence," Agricultural Economics, Blackwell, Blackwell, vol. 26(2), pages 95-114, November.
- Klaus Deininger, 2002. "Agrarian reforms in Eastern European countries: lessons from international experience," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(7), pages 987-1003.
- Kling, Catherine L. & Sexton, Richard & Carman, Hoy, 1991. "Market Integration, Efficiency of Arbitrage, and Imperfect Competition: Methodology and Application to U.S. Celery," Staff General Research Papers 1609, Iowa State University, Department of Economics.
- Fackler, Paul L. & Goodwin, Barry K., 2001. "Spatial price analysis," Handbook of Agricultural Economics, Elsevier, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 17, pages 971-1024 Elsevier.
- Spiller, Pablo T. & Wood, Robert O., 1988. "The estimation of transaction costs in arbitrage models," Journal of Econometrics, Elsevier, Elsevier, vol. 39(3), pages 309-326, November.
- Lerman, Zvi, 2001. "Agriculture in transition economies: from common heritage to divergence," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 26(2), November.
- Asfaw Negassa & Robert J. Myers, 2007.
"Estimating Policy Effects on Spatial Market Efficiency: An Extension to the Parity Bounds Model,"
American Journal of Agricultural Economics, Agricultural and Applied Economics Association,
Agricultural and Applied Economics Association, vol. 89(2), pages 338-352.
- Muleta, Asfaw Negassa & Myers, Robert J., 2007. "AJAE Appendix: Estimating Policy Effects on Spatial Market Efficiency: An Extension to the Parity Bounds Model," American Journal of Agricultural Economics Appendices, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 89(2), May.
- Schmidt, Peter & Lin, Tsai-Fen, 1984. "Simple tests of alternative specifications in stochastic frontier models," Journal of Econometrics, Elsevier, Elsevier, vol. 24(3), pages 349-361, March.
- Brennan, Donna & Williams, Jeffrey & Wright, Brian D, 1997. "Convenience Yield without the Convenience: A Spatial-Temporal Interpretation of Storage under Backwardation," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 107(443), pages 1009-22, July.
- Robert Feinberg & Mieke Meurs, 2005. "Exchange Rate Effects on Domestic Prices in Bulgaria and Poland: Progress in Making Markets?," International Journal of the Economics of Business, Taylor & Francis Journals, Taylor & Francis Journals, vol. 12(2), pages 273-288.
- Simon Maxwell, 2005. "Six characters (and a few more) in search of an author: how to rescue rural development before it's too late," Agricultural Economics, International Association of Agricultural Economists, vol. 32(s1), pages 61-73, 01.
- Jeffrey B. Miller & Stefan Petranov, 2000. "The First Wave of Mass Privatization in Bulgaria and its Immediate Aftermath," The Economics of Transition, The European Bank for Reconstruction and Development, The European Bank for Reconstruction and Development, vol. 8(1), pages 225-250, March.
- Kelvin Balcombe & Alastair Bailey & Jonathan Brooks, 2007. "Threshold Effects in Price Transmission: The Case of Brazilian Wheat, Maize, and Soya Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 89(2), pages 308-323.
- Mundlak, Yair & Larson, Donald F, 1992. "On the Transmission of World Agricultural Prices," World Bank Economic Review, World Bank Group, World Bank Group, vol. 6(3), pages 399-422, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).
If references are entirely missing, you can add them using this form.