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Agricultural Economics and Transition Agricultural economics and transition: What was expected, what we observed, the lessons learned Proceedings (Volume II) A Joint IAAE- EAAE Seminar September 6-8, 2007, Corvinus University of Budapest (CUB) Budapest, Hungary Studies on the Agricultural and Food Sector in Central and Eastern Europe Edited by Leibniz Institute of Agricultural Development in Central and Eastern Europe IAMO Volume 44 Agricultural economics and transition: What was expected, what we observed, the lessons learned Proceedings (Volume II) Edited by Csaba Csáki and Csaba Forgács IAMO 2008 Bibliografische Information Der Deutschen Bibliothek Die Deutsche Bibliothek verzeichnet diese Publikation in der Deutschen Nationalbibliografie; detaillierte bibliografische Daten sind im Internet über http://dnb.ddb.de abrufbar. Bibliographic information published by Die Deutsche Bibliothek Die Deutsche Bibliothek lists the publication in the Deutsche Nationalbibliografie; detailed bibliographic data are available in the internet at: http://dnb.ddb.de. The findings, interpretations, and conclusions expressed in this volume are entirely those of the authors and should not be attributed in any manner to the organisations affiliated with the authors. The editors and IAMO do not guarantee the accuracy of the data included in this publication and accept no responsibility for any consequence of their use. Diese Veröffentlichung kann kostenfrei im Internet unter <www.iamo.de/dok/sr_vol44.pdf> heruntergeladen werden. This publication can be downloaded free from the website <www.iamo.de/dok/sr_vol44.pdf>. © 2008 Leibniz-Institut für Agrarentwicklung in Mittel- und Osteuropa (IAMO) Theodor-Lieser-Straße 2 06120 Halle (Saale) Tel. 49 (345) 2928-0 Fax 49 (345) 2928-199 e-mail: [email protected] http://www.iamo.de ISSN 1436-221X ISBN 978-3-938584-31-6 FOREWORD Over fifteen years have elapsed since the transition from the centrally planned economic system started in the early 1990’s. During this time agricultural and rural areas of Central and Eastern Europe have undergone profound structural changes with wide variations in the degree of transformation and in the rate of success in creating a competitive market and private ownership based food and agricultural system. By becoming member of the European Union the "transition" in its traditional interpretation has been concluded in ten of the Central East European countries. The transition to market based agriculture, however, is far from completion in Southern and Eastern Europe and especially in the CIS countries. International Association of Agricultural Economists (IAAE) and European Association of Agricultural Economists (EAAE) in collaboration with the Corvinus University of Budapest and with a number of other institutions in Hungary organized an inter-conference seminar on the subject of agricultural transition in Central and Eastern Europe and Central Asia. The major objective of the seminar was to discuss and draw conclusions on the role of agricultural policy in the transition process in the light of actual progress and current situation in Central and East European countries and in formal Soviet States. In addition the contribution of agricultural economics – both from the West and from the East – as a discipline and a profession to the transition process in agriculture were discussed. A specific objective was to identify priorities and means to strengthen the agricultural economics profession in the transition countries and determine research and educational priorities for the future. The seminar was attended by 118 participants representing 26 countries from Europe, North America and Asia. The Seminar was the largest professional meeting organized by the two associations in 2007. Over 110 abstracts were submitted and evaluated by the International Program Committee. In the two days program of the meeting 8 presentations were made during the 3 plenary sessions, 66 papers were presented in the 15 contributed paper sessions in 8 subject categories. In addition there were 15 posters discussed in the poster session and the findings of a World Bank study on distortions of agricultural incentives in the region was the subject of a pre-conference workshop Plenary speakers included Ulrich Koester, Johan Swinnen, Jerzy Wilkin, Zvi Lerman, Eugenia Serova and József Popp-Gábor Udovecz. At the end of the seminar David Colman, II Agricultural economics and transition President of IAAE gave a global assessment of the status of agricultural economics discipline and profession, while Csaba Csáki, former President of IAAE made summary comments on major issues discussed during the seminar. This volume includes the plenary and contributed papers presented at the seminar and submitted for publications by the authors as well as the abstracts of the poster papers discussed. The seminar was supported and sponsored by a number of organizations and persons. All of their contributions have to be greatly acknowledged. First the two international organizations IAAE and EAAE have to be mentioned, which provided overall organizational framework and logistical support. The IAAE provided in addition a generous grant to support the participation of young agricultural economists from Central and Eastern Europe on the seminar. On the Hungarian side the Corvinus University of Budapest, the Szent István University of Gödöllő, the Research Institute for Agricultural Economics, the Hungarian Agricultural Economics Association, the Hungarian Association of Agricultural Sciences and the Hungarian Ministry of Agriculture and Rural Development were the major material and organizational supporters. The International Program committee was chaired by David Colman and Csaba Csáki and included Ulrich Koester, Joe Swinnen, Eugenia Serova and Jerzy Wilkin. The local Organizing committee was chaired by Csaba Forgács and István Szűcs and included Zoltán Lakner, András Nábrádi, József Popp, József Tóth, Gábor Udovecz, László Vajda, László Villányi, Krisztina Fodor, Attila Jámbor and Tamás Mizik. Finally IAMO, Halle facilitated the publication of this proceedings. Budapest, May 7, 2008 Csaba Csáki Csaba Forgács Editors CONTENTS Volume I Foreword........................................................................................ I Csaba Csáki, Csaba Forgács 1 Introduction: A conference summary A Joint IAAE-EAAE Seminar summary comments.................................. 3 Csaba Csáki 2 Overall transition development The profession of (agricultural) economists and the experience of transition ... 23 Ulrich Koester Measuring the success of agricultural transition: An application to Russia...... 44 William M. Liefert Competitiveness in the food industry: A CGE modeling approach to assess foreign direct investment in transition countries ............................. 55 Martin Banse, S. H. Gay, S. Mcdonald, R. M’barek, Johan F. M. Swinnen Policy reform and agricultural productivity in transition countries.............. 66 Hanho Kim, Donghwan An Changes in the structure of agricultural production, farm structure and income in Hungary in the period of 2004-2006........................................ 73 Gábor Szabó Shaping agribusiness and its impact on the competitive environment of agricultural enterprises......................................................................... 82 Věra Bečvářová Transition and foreign trade: The case of the Ukrainian agri-food sector ........ 93 Inna Levkovych, Heinrich Hockmann The development of the hungarian agricultural trade after the EU accession ... 104 Gábor Kőnig IV Csaba Csáki, Csaba Forgács 3 Country transition experience Agricultural transition and integration to the world economy: NIS case ...... 117 Eugenia Serova Diversification of rural incomes and non-farm rural employment: Evidence from Russia........................................................................................ 133 Dmitry Zvyagintsev, Olga Shick, Eugenia Serova, Zvi Lerman Accounting for heterogeneity bias in efficiency models: An application to Polish agriculture............................................................................. 144 Heinrich Hockmann, Agata Pieniadz Transformational crisis, transformational depression in the agriculture. The Hungarian case ............................................................................. 154 Péter Halmai, Viktória Vásáry The main bottlenecks of the rural knowledge transfer in Romania.............. 165 Mária Vincze, Andrea Kölcsey Studying investment patterns in Russian agriculture................................. 175 Raushan Bokusheva, Irina Bezlepkina, Alexander Kupavyc Changes in the Romanian farm structures during transition – Evolution and main determinants ......................................................................... 184 Crina Turtoi, Camelia Toma, Camelia Gavrilescu A time-series analysis of the beef livestock supply in Russia: Implications for agricultural sector development policies.......................... 193 Maria Antonova, Manfred Zeller 4 Land reform Agricultural recovery in CIS: Lessons of 15 years of land reform and farm restructurin ................................................................................. 205 Zvi Lerman Land market development and agricultural production efficiency in Albania .............................................................................................. 223 Klaus Deininger, Sara Savastano, Gero Carletto, The persistence of the corporate farms: They survived the transition but do they have future under the CAP .......................................................
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