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Institutions, policy reforms and efficiency in new member states from Centraland Eastern Europe

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  • Bojnec, Štefan
  • Fertő, Imre
  • Jámbor, Attila
  • Tóth, József

Abstract

This paper investigates determinants of agricultural sector efficiency in ten new member states (NMS-10) of the European Union (EU) from Central and Eastern European countries by the non-parametric method Data Envelopment Analysis (DEA) and the panel data analysis. The agricultural sector efficiency varies between the NMS-10. We have found positive and significant association of the agricultural sector efficiency with the natural agricultural factor endowments, average farm size, farm specialization, small-scale farms, and the EU integration process. The foreign direct investments have an ambiguous affect, while the nominal assistance rate is not found significant. Reform and institutional developments and liberalization are associated with the agricultural sector efficiency positively, and vice versa infrastructure development and agricultural policy reforms, which have caused job flows and agricultural employment adjustments. The urban-rural income gap with job flows and agricultural labour adjustments have caused the agricultural sector efficiency positively. --

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Bibliographic Info

Paper provided by Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO) in its series IAMO Forum 2010: Institutions in Transition – Challenges for New Modes of Governance with number 52712.

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Date of creation: 2010
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Handle: RePEc:zbw:iamo10:52712

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Keywords: agricultural efficiency; institutions; policy reforms;

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  1. Sophia Davidova & Matthew Gorton & Belen Iraizoz & Tomas Ratinger, 2003. "Variations in Farm Performance in Transitional Economies: Evidence from the Czech Republic-super-1," Journal of Agricultural Economics, Wiley Blackwell, vol. 54(2), pages 227-245.
  2. Raushan Bokusheva & Heinrich Hockmann, 2006. "Production risk and technical inefficiency in Russian agriculture," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 33(1), pages 93-118, March.
  3. Alexej Lissitsa & Supawat Rungsuriyawiboon & Sergiy Parkhomenko, 2007. "How Far Are the Transition Countries from the Economic Standards of the European Union?: Measuring Efficiency and Growth in Agriculture," Eastern European Economics, M.E. Sharpe, Inc., vol. 45(3), pages 51-75, June.
  4. Lerman, Zvi & Csaki, Csaba & Feder, Gershon, 2002. "Land policies and evolving farm structures in transition countries," Policy Research Working Paper Series 2794, The World Bank.
  5. Swinnen, Johan F.M., 2009. "Reforms, Globalization, and Endogenous Agricultural Structures," 111th Seminar, June 26-27, 2009, Canterbury, UK 52802, European Association of Agricultural Economists.
  6. Stefan Bojnec & Liesbeth Dries, 2005. "Causes of Changes in Agricultural Employment in Slovenia: Evidence from Micro-data," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(3), pages 399-416.
  7. 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.
  8. Stefan Bojnec & Laure Latruffe, 2009. "Determinants of technical efficiency of Slovenian farms," Post-Communist Economies, Taylor & Francis Journals, vol. 21(1), pages 117-124.
  9. Gorton, Matthew & Davidova, Sophia, 2004. "Farm productivity and efficiency in the CEE applicant countries: a synthesis of results," Agricultural Economics, Blackwell, vol. 30(1), pages 1-16, January.
  10. 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.
  11. Macours, Karen & Swinnen, Johan F M, 2002. "Patterns of Agrarian Transition," Economic Development and Cultural Change, University of Chicago Press, vol. 50(2), pages 365-94, January.
  12. 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.
  13. Lerman, Zvi, 2001. "Agriculture in transition economies: from common heritage to divergence," Agricultural Economics, Blackwell, vol. 26(2), pages 95-114, November.
  14. Scott Rozelle & Johan F.M. Swinnen, 2004. "Success and Failure of Reform: Insights from the Transition of Agriculture," Journal of Economic Literature, American Economic Association, vol. 42(2), pages 404-456, June.
  15. Macours, Karen & Swinnen, Johan F.M., 2008. "Rural-Urban Poverty Differences in Transition Countries," World Development, Elsevier, vol. 36(11), pages 2170-2187, November.
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