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The Economics Of Agricultural Decollectivization In Central And Eastern Europe

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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 Central and Eastern European countries. Family farming is not well developed in countries where large-scale successor organizations to the former state and collective farms still dominate, such as Slovakia, Hungary and the Czech Republic. However, family farms are important in Albania and Latvia, where a massive break-up of the collective farms resulted in a domination of small-scale production units. Also within countries there exist wide variations in the decollectivization of 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 remarkable correlations between decollectivization and our explanatory variables. Specifically, they suggest the importance of relative productivity, factor intensity and privatization procedures in explaining differences between countries in decollectivization.

Suggested Citation

  • Mathijs, Erik & Swinnen, Johan F.M., 1996. "The Economics Of Agricultural Decollectivization In Central And Eastern Europe," PRG Working Papers 31868, Katholieke Universiteit Leuven, LICOS - Centre for Institutions and Economic Performance.
    • Handle: RePEc:ags:kuliwp:31868
    DOI: 10.22004/ag.econ.31868
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    References listed on IDEAS

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    5. Schmitt, Gunther, 1991. "Why Is the Agriculture of Advanced Western Economies Still Organized by Family Farms? Will This Continue to Be So in the Future?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 18(3-4), pages 443-458.
    6. Michael E. Bradley, 1971. "Incentives and Labour Supply on Soviet Collective Farms," Canadian Journal of Economics, Canadian Economics Association, vol. 4(3), pages 342-352, August.
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    Cited by:

    1. 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.
    2. J. Sauer & B. Balint, 2008. "Distorted prices and producer efficiency: the case of Romania," Journal of Productivity Analysis, Springer, vol. 29(2), pages 131-142, April.
    3. Tillack, P. & Schulze, E., 1998. "Veränderung der Betriebsstrukturen in der Landwirtschaft Mittel- und Osteuropas im Verlauf des Transformationsprozesses – Analyse und Ausblick," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 34.

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