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

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

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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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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  1. 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.
  2. 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.
  3. Johan F.M. Swinnen, 2009. "Reforms, globalization, and endogenous agricultural structures," Agricultural Economics, International Association of Agricultural Economists, vol. 40(s1), pages 719-732, November.
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  5. 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.
  6. Lerman, Zvi, 2001. "Agriculture in transition economies: from common heritage to divergence," Agricultural Economics, Blackwell, vol. 26(2), pages 95-114, November.
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  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. 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.
  10. 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.
  11. 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.
  12. E. Paul Durrenberger, 2005. "Labour," Chapters, in: A Handbook of Economic Anthropology, chapter 8 Edward Elgar.
  13. 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.
  14. 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.
  15. 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.
  16. 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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