Impact of public subsidies on farms’ technical efficiency in New Member States before and after EU accession

Latruffe , Laure
        INRA
        , Rennes .
         UMR 1302 Structures et Marchés Agricoles, Ressources et Territoires; Bakucs , L.
        . Institute of Economics; Bojnec , S.
        . Faculty of Management; Ferto , I.
        . Institute of Economics; Fogarasi , J.
        .; Gavrilescu , C.
        .; Jelinek , L.
        .; Luca , L.
        .; Medonos , T.
        .; Toma , C.
        .

Impact of public subsidies on farms’ technical efficiency in New Member States before and after EU accession

2008

Latruffe , Laure (INRA , Rennes (France). UMR 1302 Structures et Marchés Agricoles, Ressources et Territoires) | Bakucs , L. (Hungarian Academy of Sciences, Budapest(Hongrie). Institute of Economics) | Bojnec , S. (University of Primorska, Koper(Slovénie). Faculty of Management) | Ferto , I. (Hungarian Academy of Sciences, Budapest(Hongrie). Institute of Economics) | Fogarasi , J. (Agricultural Economics Research Institute, Budapest(Hongrie).) | Gavrilescu , C. (Institute of Agricultural Economics, Bucarest(Roumanie).) | Jelinek , L. (Research Institute of Agricultural Economics, Prague(Tchèque (république)).) | Luca , L. (Institute of Agricultural Economics, Bucarest(Roumanie).) | Medonos , T. (Research Institute of Agricultural Economics, Prague(Tchèque (république)).) | Toma , C. (Institute of Agricultural Economics, Bucarest(Roumanie).)

This paper presents some results of a twoyear (2006-2007) research project supported by the French Ministry of Research’s funding program ECONET. One of the project’s objectives was to investigate the determinants of farm technical efficiency in New Member States before and after accession to the European Union, and in particular the role of public subsidies on this performance variable. Four countries were considered: Hungary, the Czech Republic and Slovenia, who acceded to the EU in 2004, and Romania, whose accession was in 2007. The study found that subsidies had a negative impact on farm technical efficiency in Hungary over the period 2001-2005, in the Czech dairy corporate sector over the period 2000-2004, in Slovenia over the period 1994-2003, and in the Romanian crop sector in 2005.

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