Determinants of technical efficiency in agriculture in new EU member states from Central and Eastern Europe

Author:

Bojnec Štefan1,Fertő Imre,Jámbor Attila2,Tóth József2

Affiliation:

1. 1 University of Primorska Faculty of Management Koper Slovenia

2. 3 University of Budapest Department of Agricultural Economics and Rural Development of the Corvinus Budapest Hungary

Abstract

Technical efficiency in agriculture of 10 new EU member states is analysed by Data Envelopment Analysis and econometric panel data analysis. Technical efficiency in agriculture is significantly positively associated with agricultural factor endowments, average farm size, farm specialisation, small-scale farms, and technological change. Foreign direct investments have an ambiguous effect. Reform and institutional developments, large-scale privatisation and price liberalisation, and urban- rural income gap are associated with technical efficiency in agriculture positively. An increase in technical efficiency in agriculture and the development of the rural economy are seen as a strategy to boost the level of living standards in agriculture and in rural areas.

Publisher

Akademiai Kiado Zrt.

Subject

Economics and Econometrics

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