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Market Imperfections and Agricultural Policy Effects on Structural Change and Competitiveness in an Enlarged EU

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  • Ciaian, Pavel
  • Swinnen, Johan F.M.

Abstract

This paper examines the relationship between structural changes and EU agricultural policies and their implications in the context of the enlarged EU. The paper examines the impact of EU policies on the restructuring and competitiveness of farms in the new member states taking into account imperfections in rural markets. Using a model of rural factor market imperfections in the new EU member states, including both high transaction costs and imperfect competition, we analyse the effects of EU policies on the distribution of policy rents, on the restructuring of farms, and on aggregate productivity. In addition, we draw upon the findings of a series of other studies to identify the effects and constraints of rural development and structural policies in these countries for enhancing the competitiveness of the various farm structures.

Suggested Citation

  • Ciaian, Pavel & Swinnen, Johan F.M., 2005. "Market Imperfections and Agricultural Policy Effects on Structural Change and Competitiveness in an Enlarged EU," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24463, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae05:24463
    DOI: 10.22004/ag.econ.24463
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    References listed on IDEAS

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    1. De Gorter, Harry & Swinnen, Johan, 2002. "Political economy of agricultural policy," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 36, pages 1893-1943, Elsevier.
    2. 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.
    3. Mathijs, Erik & Swinnen, Johan F M, 1998. "The Economics of Agricultural Decollectivization in East Central Europe and the Former Soviet Union," Economic Development and Cultural Change, University of Chicago Press, vol. 47(1), pages 1-26, October.
    4. Banse, Martin & Münch, Wolfgang & Tangermann, Stefan, 2000. "Eastern Enlargement of the European Union: General and Partial Equilibrium Analysis," 2000 Conference, August 13-18, 2000, Berlin, Germany 197223, International Association of Agricultural Economists.
    5. Hertel, Thomas W & Brockmeier, Martina & Swaminathan, Padma V, 1997. "Sectoral and Economy-Wide Analysis of Integrating Central and Eastern Europe Countries into the EU: Implications of Alternative Strategies," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 24(3-4), pages 359-386.
    6. 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.
    7. Lerman, Zvi, 2001. "Agriculture in transition economies: from common heritage to divergence," Agricultural Economics, Blackwell, vol. 26(2), pages 95-114, November.
    8. 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.
    9. Nigel Swain, 1999. "Agricultural Restitution and Co-operative Transformation in the Czech Republic, Hungary and Slovakia," Europe-Asia Studies, Taylor & Francis Journals, vol. 51(7), pages 1199-1219.
    10. Csaki, Csaba & Lerman, Zvi, 2001. "Land And Farm Structure In Poland," Discussion Papers 14998, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    11. Johan Swinnen & Liesbet Vranken, 2003. "Land Rental Markets and Household Farms in Transition: Theory and Evidence from Hungary," LICOS Discussion Papers 12903, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    12. 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.
    13. 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.
    14. Vranken, Liesbet & Swinnen, Johan F.M., 2003. "Land Markets In Transition: Theory And Evidence From Hungary," PRG Working Papers 31880, Katholieke Universiteit Leuven, LICOS - Centre for Institutions and Economic Performance.
    15. Ciaian, Pavel & Swinnen, Johan F.M., 2006. "AJAE Appendix: Land Market Imperfections and Agricultural Policy Impacts in the New EU Member States: A Partial Equilibrium Analysis," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 88(4), pages 1-10, November.
    16. Johan F. M. Swinnen, 1999. "The political economy of land reform choices in Central and Eastern Europe," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(3), pages 637-664, November.
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    Cited by:

    1. Gohin, Alexandre, 2006. "Assessing the 2003 CAP Reform: Sensitivity to the Decoupling of Agenda 2000 Direct Payments," Working Papers 18868, TRADEAG - Agricultural Trade Agreements.
    2. Schnicke, Hauke Joachim & Happe, Kathrin & Sahrbacher, Christoph, 2007. "Structural Change And Farm Labour Adjustments In A Dualistic Farm Structure: A Simulation Study For The Region Nitra In Southwest Slovakia," IAMO Discussion Papers 91736, Institute of Agricultural Development in Transition Economies (IAMO).
    3. Natalia Brzezina & Birgit Kopainsky & Erik Mathijs, 2016. "Can Organic Farming Reduce Vulnerabilities and Enhance the Resilience of the European Food System? A Critical Assessment Using System Dynamics Structural Thinking Tools," Sustainability, MDPI, vol. 8(10), pages 1-32, September.
    4. Alexandre Gohin, 2006. "Assessing CAP Reform: Sensitivity of Modelling Decoupled Policies," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(3), pages 415-440, September.

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