Common Policy but Different Outcomes: Structural Change in Family Farms of Central and East European Countries after Their Accession to the EU

This paper investigates structural change in family farming in ten EU New Member States from Central and Eastern Europe which can be treated as a borderline between transition and developed economies. The paper proposes that farms using at least one Annual Work Unit (AWU) family labour are classifie...

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Autores principales:	Philip Kostov, Sophia Davidova
Formato:	article
Lenguaje:	EN
Publicado:	MDPI AG 2021
Materias:	structural change family farms EU New Member States technological change endowment Oaxaca-Blinder technique Agriculture (General) S1-972
Acceso en línea:	https://doaj.org/article/0df4f3c562b0402c9dc43d910e15b11b
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spelling	oai:doaj.org-article:0df4f3c562b0402c9dc43d910e15b11b2021-11-25T15:58:41ZCommon Policy but Different Outcomes: Structural Change in Family Farms of Central and East European Countries after Their Accession to the EU10.3390/agriculture111110742077-0472https://doaj.org/article/0df4f3c562b0402c9dc43d910e15b11b2021-10-01T00:00:00Zhttps://www.mdpi.com/2077-0472/11/11/1074https://doaj.org/toc/2077-0472This paper investigates structural change in family farming in ten EU New Member States from Central and Eastern Europe which can be treated as a borderline between transition and developed economies. The paper proposes that farms using at least one Annual Work Unit (AWU) family labour are classified as family since it is considered that engaging less than one full-time family member may not show commitment to the family operation. The Oaxaca-Blinder decomposition is employed to analyse the drivers of structural change at a farm level, i.e., the extent to which it is technology or endowment driven. To compare the developments in different countries, the changes are presented in relative terms in order to reveal the relative distance travelled by the structural change in individual New Member States alongside the relative importance of technology and endowments changes. The estimation of a translog production function by country is used to derive the corresponding decompositions. Empirical analysis is based on data from the EU Farm Accountancy Data Network (FADN) for two time points—2007, when the last of the ten CEECs joined the EU—Bulgaria and Romania, and 2015 to investigate structural change during the first decade of EU membership. The results show that the differences in the initial conditions and the adjustments to the CAP have brought about quite a diverse picture concerning the changes in output in the family and non-family farms in the NMS. The a priori expected dynamics of positive output growth in family farms and negative in the non-family has only materialised in Latvia, Romania and Slovakia. The decomposition of output changes suggests a positive effect of technical change in family farms only in the early years of EU accession. Concerning endowments, their effect on structural change is mostly positive with the only exception of Slovenia. This suggests that the family farming sector grows by accumulating productive resources. However, this growth has not always materialised in increase of family farms output.Philip KostovSophia DavidovaMDPI AGarticlestructural changefamily farmsEU New Member Statestechnological changeendowmentOaxaca-Blinder techniqueAgriculture (General)S1-972ENAgriculture, Vol 11, Iss 1074, p 1074 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	structural change family farms EU New Member States technological change endowment Oaxaca-Blinder technique Agriculture (General) S1-972
spellingShingle	structural change family farms EU New Member States technological change endowment Oaxaca-Blinder technique Agriculture (General) S1-972 Philip Kostov Sophia Davidova Common Policy but Different Outcomes: Structural Change in Family Farms of Central and East European Countries after Their Accession to the EU
description	This paper investigates structural change in family farming in ten EU New Member States from Central and Eastern Europe which can be treated as a borderline between transition and developed economies. The paper proposes that farms using at least one Annual Work Unit (AWU) family labour are classified as family since it is considered that engaging less than one full-time family member may not show commitment to the family operation. The Oaxaca-Blinder decomposition is employed to analyse the drivers of structural change at a farm level, i.e., the extent to which it is technology or endowment driven. To compare the developments in different countries, the changes are presented in relative terms in order to reveal the relative distance travelled by the structural change in individual New Member States alongside the relative importance of technology and endowments changes. The estimation of a translog production function by country is used to derive the corresponding decompositions. Empirical analysis is based on data from the EU Farm Accountancy Data Network (FADN) for two time points—2007, when the last of the ten CEECs joined the EU—Bulgaria and Romania, and 2015 to investigate structural change during the first decade of EU membership. The results show that the differences in the initial conditions and the adjustments to the CAP have brought about quite a diverse picture concerning the changes in output in the family and non-family farms in the NMS. The a priori expected dynamics of positive output growth in family farms and negative in the non-family has only materialised in Latvia, Romania and Slovakia. The decomposition of output changes suggests a positive effect of technical change in family farms only in the early years of EU accession. Concerning endowments, their effect on structural change is mostly positive with the only exception of Slovenia. This suggests that the family farming sector grows by accumulating productive resources. However, this growth has not always materialised in increase of family farms output.
format	article
author	Philip Kostov Sophia Davidova
author_facet	Philip Kostov Sophia Davidova
author_sort	Philip Kostov
title	Common Policy but Different Outcomes: Structural Change in Family Farms of Central and East European Countries after Their Accession to the EU
title_short	Common Policy but Different Outcomes: Structural Change in Family Farms of Central and East European Countries after Their Accession to the EU
title_full	Common Policy but Different Outcomes: Structural Change in Family Farms of Central and East European Countries after Their Accession to the EU
title_fullStr	Common Policy but Different Outcomes: Structural Change in Family Farms of Central and East European Countries after Their Accession to the EU
title_full_unstemmed	Common Policy but Different Outcomes: Structural Change in Family Farms of Central and East European Countries after Their Accession to the EU
title_sort	common policy but different outcomes: structural change in family farms of central and east european countries after their accession to the eu
publisher	MDPI AG
publishDate	2021
url	https://doaj.org/article/0df4f3c562b0402c9dc43d910e15b11b
work_keys_str_mv	AT philipkostov commonpolicybutdifferentoutcomesstructuralchangeinfamilyfarmsofcentralandeasteuropeancountriesaftertheiraccessiontotheeu AT sophiadavidova commonpolicybutdifferentoutcomesstructuralchangeinfamilyfarmsofcentralandeasteuropeancountriesaftertheiraccessiontotheeu
_version_	1718413361667899392

Common Policy but Different Outcomes: Structural Change in Family Farms of Central and East European Countries after Their Accession to the EU

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