An Analysis of Agricultural Productivity Determinants in Transition Countries
2012
Lee, D.S., Korea Rural Economic Institute, Seoul, Republic of Korea | Kim, K.S., Seoul National University, Seoul, Republic of Korea | An, D.H., Seoul National University, Seoul, Republic of Korea
This paper aims to conduct an analysis of agricultural productivity changes and its determinants in transition countries, and derive implications for their agricultural policies. The study uses data on agricultural productivity changes in 22 transition countries from 1992 to 2007. The analysis relies on the stochastic frontier analysis (SFA). We also investigated the impacts of political factors and initial conditions on agricultural productivity changes in transition countries. We identified three implications for agricultural reform in transition countries. First, it is advisable that the forfeited land during the process of land reform be returned to the original owner. Second, policies and institutional plans are needed for a smooth transition into market economy. Third, initial conditions of individual country experiencing transition must be explicitly taken into consideration in transition policies.
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