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Sigma convergence in Hungarian agriculture


  • Lamfalusi, Ibolya


The present paper provides an analysis of agricultural sigma convergence in four old Member States and in Hungary. The analysis was derived from the output and input data from the Economic Accounts for Agriculture between 1990-2005. The results obtained indicate significant convergence in the old Member States and Hungary. First of all this held true for incomes but the inputs do not reveal a perceptible pattern. However, in terms of outputs Hungary lags well behind the Old Member States, but the difference is not nearly as great for inputs. This can probably be explained by the fact that the rate of increase for inputs is higher than for producer prices, meaning the relative prices of agricultural output and input products (agricultural terms of trade) are increasing, which decelerates the convergence process. Even the improvement in efficiency can only partly compensate for these negative effects. The results of the analysis underline the importance of the number of employees of which the continual and significant decrease largely determines convergence itself and also its rate.

Suggested Citation

  • Lamfalusi, Ibolya, 2008. "Sigma convergence in Hungarian agriculture," Studies in Agricultural Economics, Research Institute for Agricultural Economics, issue 107, March.
  • Handle: RePEc:ags:stagec:46660

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    References listed on IDEAS

    1. Cristina Brasili & Luciano Gutierrez, 2004. "Regional convergence across European Union," Development and Comp Systems 0402002, EconWPA.
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