IDEAS home Printed from https://ideas.repec.org/a/gam/jagris/v11y2021i11p1074-d669246.html
   My bibliography  Save this article

Common Policy but Different Outcomes: Structural Change in Family Farms of Central and East European Countries after Their Accession to the EU

Author

Listed:
  • Philip Kostov

    (School of Business, University of Central Lancashire, Preston PR1 2HE, UK)

  • Sophia Davidova

    (School of Economics, University of Kent, Canterbury CT2 7NZ, UK)

Abstract

This paper investigates structural change in family farming in ten EU New Member States from Central and Eastern Europe which can be treated as a borderline between transition and developed economies. The paper proposes that farms using at least one Annual Work Unit (AWU) family labour are classified as family since it is considered that engaging less than one full-time family member may not show commitment to the family operation. The Oaxaca-Blinder decomposition is employed to analyse the drivers of structural change at a farm level, i.e., the extent to which it is technology or endowment driven. To compare the developments in different countries, the changes are presented in relative terms in order to reveal the relative distance travelled by the structural change in individual New Member States alongside the relative importance of technology and endowments changes. The estimation of a translog production function by country is used to derive the corresponding decompositions. Empirical analysis is based on data from the EU Farm Accountancy Data Network (FADN) for two time points—2007, when the last of the ten CEECs joined the EU—Bulgaria and Romania, and 2015 to investigate structural change during the first decade of EU membership. The results show that the differences in the initial conditions and the adjustments to the CAP have brought about quite a diverse picture concerning the changes in output in the family and non-family farms in the NMS. The a priori expected dynamics of positive output growth in family farms and negative in the non-family has only materialised in Latvia, Romania and Slovakia. The decomposition of output changes suggests a positive effect of technical change in family farms only in the early years of EU accession. Concerning endowments, their effect on structural change is mostly positive with the only exception of Slovenia. This suggests that the family farming sector grows by accumulating productive resources. However, this growth has not always materialised in increase of family farms output.

Suggested Citation

  • Philip Kostov & Sophia Davidova, 2021. "Common Policy but Different Outcomes: Structural Change in Family Farms of Central and East European Countries after Their Accession to the EU," Agriculture, MDPI, vol. 11(11), pages 1-18, October.
    • Handle: RePEc:gam:jagris:v:11:y:2021:i:11:p:1074-:d:669246
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2077-0472/11/11/1074/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2077-0472/11/11/1074/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ben Jann, 2008. "The Blinder–Oaxaca decomposition for linear regression models," Stata Journal, StataCorp LP, vol. 8(4), pages 453-479, December.
    2. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    3. Macours, Karen & Swinnen, Johan F. M., 2000. "Causes of Output Decline in Economic Transition: The Case of Central and Eastern European Agriculture," Journal of Comparative Economics, Elsevier, vol. 28(1), pages 172-206, March.
    4. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    5. Balmann, Alfons & Valentinov, Vladislav, 2016. "Towards a Theory of Structural Change in Agriculture: Just Economics?," 149th Seminar, October 27-28, 2016, Rennes, France 246420, European Association of Agricultural Economists.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Supannika Lursinsap & Ruth Sirisunyaluck & Suraphol Sreshthaputra & Juthathip Chalermphol, 2023. "Factors Influencing the Chance of Inheriting the Family Farming Career among Heirs in the Upper Northern Region of Thailand in the Crisis of Farming Labor Decline," Sustainability, MDPI, vol. 15(2), pages 1-16, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thomas Y. Mathä & Alessandro Porpiglia & Michael Ziegelmeyer, 2014. "Wealth differences across borders and the effect of real estate price dynamics: Evidence from two household surveys," BCL working papers 90, Central Bank of Luxembourg.
    2. Marco Caliendo & Frank M. Fossen & Alexander Kritikos & Miriam Wetter, 2015. "The Gender Gap in Entrepreneurship: Not just a Matter of Personality," CESifo Economic Studies, CESifo Group, vol. 61(1), pages 202-238.
    3. Huong Thu Le & Ha Trong Nguyen, 2018. "The evolution of the gender test score gap through seventh grade: new insights from Australia using unconditional quantile regression and decomposition," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-42, December.
    4. Kilic, Talip & Palacios-López, Amparo & Goldstein, Markus, 2015. "Caught in a Productivity Trap: A Distributional Perspective on Gender Differences in Malawian Agriculture," World Development, Elsevier, vol. 70(C), pages 416-463.
    5. Tymon Słoczyński, 2015. "The Oaxaca–Blinder Unexplained Component as a Treatment Effects Estimator," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 77(4), pages 588-604, August.
    6. Bachmann, Ronald & Martinez Flores, Fernanda & Rulff, Christian, 2022. "Die Lohnlücke in der Zeitarbeit: Eine empirische Analyse auf Grundlage von BA-Daten und der Verdienststrukturerhebung," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 262219.
    7. Sánchez-Jabba, Andrés Mauricio, 2014. "Etnia y rendimiento académico en Colombia," Chapters, in: Sánchez Jabba, Andrés & Otero Cortés, Andrea (ed.), Educación y desarrollo regional en Colombia, chapter 2, pages 59-100, Banco de la Republica de Colombia.
    8. Azam Mehtabul & Han Luyi, 2020. "Accounting for Differences in Female Labor Force Participation between China and India," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 20(2), pages 1-17, April.
    9. Vassilis Monastiriotis & Angelo Martelli, 2021. "Crisis, Adjustment and Resilience in the Greek Labor Market: An Unemployment Decomposition Approach," International Regional Science Review, , vol. 44(1), pages 85-112, January.
    10. Brandon Vick, 2017. "Measuring links between labor monopsony and the gender pay gap in Brazil," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-28, December.
    11. Philippe Adair & Oksana Nezhyvenko, 2020. "Wage Differentials in EU Transition Economies (2009-2016): How Large a Penalty for Females and Informal Employees?," Proceedings of Economics and Finance Conferences 10913129, International Institute of Social and Economic Sciences.
    12. Powers, Daniel A. & Yun, Myeong-Su, 2009. "Multivariate Decomposition for Hazard Rate Models," IZA Discussion Papers 3971, Institute of Labor Economics (IZA).
    13. Niels-Hugo Blunch & Maitreyi Bordia Das, 2015. "Changing norms about gender inequality in education: Evidence from Bangladesh," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 32(6), pages 183-218.
    14. Oscar Molina Tejerina & Luis Castro Peñarrieta, 2020. "Unexplained Wage Gaps in the Tradable and Nontradable Sectors: Cross-Sectional Evidence by Gender in Bolivia," Investigación & Desarrollo, Universidad Privada Boliviana, vol. 20(1), pages 5-23.
    15. Amelie F. Constant & Annabelle Krause & Ulf Rinne & Klaus F. Zimmermann, 2017. "Reservation wages of first- and second-generation migrants," Applied Economics Letters, Taylor & Francis Journals, vol. 24(13), pages 945-949, July.
    16. Bryan, Mark & Bryce, Andrew & Rice, Nigel & Roberts, Jennifer & Sechel, Cristina, 2022. "Exploring mental health disability gaps in the labour market: the UK experience during COVID-19," Labour Economics, Elsevier, vol. 78(C).
    17. Bachmann, Ronald & Martinez Flores, Fernanda & Rulf, Christian, 2022. "Die Lohnlücke in der Zeitarbeit: Eine empirische Analyse auf Grundlage der Integrierten Erwerbsbiografien und der Verdienststrukturerhebung," RWI Materialien 153, RWI - Leibniz-Institut für Wirtschaftsforschung.
    18. Daniela Piazzalunga & Maria Laura Di Tommaso, 2019. "The increase of the gender wage gap in Italy during the 2008-2012 economic crisis," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 17(2), pages 171-193, June.
    19. Zhu, Rong, 2016. "Wage differentials between urban residents and rural migrants in urban China during 2002–2007: A distributional analysis," China Economic Review, Elsevier, vol. 37(C), pages 2-14.
    20. Borau, Sylvie & Couprie, Hélène & Hopfensitz, Astrid, 2022. "The prosociality of married people: Evidence from a large multinational sample," Journal of Economic Psychology, Elsevier, vol. 92(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jagris:v:11:y:2021:i:11:p:1074-:d:669246. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.