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The Economics Of Agricultural Decollectivization In East Central Europe And The Former Soviet Union

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  • Mathijs, Erik
  • Swinnen, Johan F.M.

Abstract

The break-up of large-scale agricultural production units into individually operated farms differs considerably across East Central Europe and the Former Soviet Union. Large-scale successor organizations to the former state and collective farms still dominate in Slovakia, Hungary, the Czech Republic, and in most states of the Former Soviet Union. In Albania, Armenia, and Latvia, a massive break-up of the collective farms resulted in a domination of smaller scale individual farms. Also within countries there exist wide variations in the decollectivization process between different regions and agricultural subsectors. We develop an economic model of decollectivization to explain these variations and derive a series of propositions regarding factors affecting the decollectivization process. Our empirical analysis presents correlations between decollectivization and our explanatory variables. Specifically, they suggest the importance of relative productivity, factor intensity and privatization and decollectivization procedures in explaining decollectivization differences between countries.

Suggested Citation

  • Mathijs, Erik & Swinnen, Johan F.M., 1997. "The Economics Of Agricultural Decollectivization In East Central Europe And The Former Soviet Union," PRG Working Papers 31882, Katholieke Universiteit Leuven, LICOS - Centre for Institutions and Economic Performance.
    • Handle: RePEc:ags:kuliwp:31882
    DOI: 10.22004/ag.econ.31882
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    References listed on IDEAS

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    1. Carter, Michael R, 1987. "Risk Sharing and Incentives in the Decollectivization of Agriculture," Oxford Economic Papers, Oxford University Press, vol. 39(3), pages 577-595, September.
    2. Amartya K. Sen, 1966. "Labour Allocation in a Cooperative Enterprise," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 33(4), pages 361-371.
    3. Peterson, Willis L., 1997. "Are Large Farms More Efficient?," Staff Papers 13411, University of Minnesota, Department of Applied Economics.
    4. Kislev, Yoav & Peterson, Willis L., 1991. "Economies Of Scale In Agriculture: A Reexamination Of The Evidence," Staff Papers 13652, University of Minnesota, Department of Applied Economics.
    5. Swinnen, Johan F M, 1997. "Does Compensation for Disruptions Stimulate Reforms? The Case of Agrarian Reform in Central and Eastern Europe," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 24(2), pages 249-266.
    6. Pollak, Robert A, 1985. "A Transaction Cost Approach to Families and Households," Journal of Economic Literature, American Economic Association, vol. 23(2), pages 581-608, June.
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