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The impact of EU accession on farms' technical efficiency in Hungary

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  • Lajos Zoltan Bakucs
  • Laure Latruffe
  • Imre Fertő
  • Jozsef Fogarasi

Abstract

In this article the stochastic frontier analysis method is used to evaluate the technical efficiency of Hungarian farms before and after accession to the European Union (EU), and to investigate the efficiency determinants. The results show that EU membership has reversed the pre-accession process of efficiency decrease. But the other side of the coin is that access to higher post-accession subsidies contributes to lower efficiency of Hungarian farmers. The other remarkable finding is a seeming scarcity of labour on farms, which constrains their production and efficiency. The Hungarian government may therefore have to design specific national policies if its aim is to promote a farming system that uses labour and at the same time is competitive.

Suggested Citation

  • Lajos Zoltan Bakucs & Laure Latruffe & Imre Fertő & Jozsef Fogarasi, 2010. "The impact of EU accession on farms' technical efficiency in Hungary," Post-Communist Economies, Taylor & Francis Journals, vol. 22(2), pages 165-175.
    • Handle: RePEc:taf:pocoec:v:22:y:2010:i:2:p:165-175
    DOI: 10.1080/14631371003740639
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    References listed on IDEAS

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    1. Lerman, Zvi, 2002. "Productivity And Efficiency Of Individual Farms In Poland: A Case For Land Consolidation," 2002 Annual meeting, July 28-31, Long Beach, CA 19835, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Zhu, Xueqin & Demeter, Robert Milan & Oude Lansink, Alfons G.J.M., 2008. "Competitiveness of dairy farms in three countries: the role of CAP subsidies," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44143, European Association of Agricultural Economists.
    3. Elodie Douarin & Alastair Bailey & Sophia Davidova & Matthew Gorton & Laure Latruffe, 2007. "Structural, location and human capital determinants of farmers’ response to decoupled payments," Working Papers hal-02822652, HAL.
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