Causes of Output Decline in Economic Transition: The Case of Central and Eastern European Agriculture

Posted: 25 Jul 2000

See all articles by Karen Macours

Karen Macours

Paris School of Economics (PSE)

Johan F. M. Swinnen

KU Leuven - Centre for Institutions and Economic Performance (LICOS); European Commission, DG II

Abstract

This paper analyzes how policy reforms and other factors have effected agricultural output in Central and Eastern Europe since 1989. Price liberalization and subsidy cuts caused a decline in relative prices for agriculture, contributing to almost half of the output decline. Transition uncertainty and severe drought each caused an average output fall of around 10%. Privatization, farm restructuring, and the associated disruptions affected output through input adjustments and production efficiency changes. Their impact differs between countries, as it is conditional on initial conditions and reform and liberalization in the rest of the economy.

JEL Classification: P21, Q11

Suggested Citation

Macours, Karen and Swinnen, Johan F.M., Causes of Output Decline in Economic Transition: The Case of Central and Eastern European Agriculture. Journal of Comparative Economics, pp. 172-206, 2000. Available at SSRN: https://ssrn.com/abstract=228550

Karen Macours (Contact Author)

Paris School of Economics (PSE) ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France

Johan F.M. Swinnen

KU Leuven - Centre for Institutions and Economic Performance (LICOS) ( email )

Waaistraat 6
Leuven, B-3000
Belgium

European Commission, DG II ( email )

Wetstrath 200
Office 15172
1049 Brussels
Belgium
+32-2-2960442 (Phone)
Not available (Fax)

Register to save articles to
your library

Register

Paper statistics

Abstract Views
635
PlumX Metrics