Analysing agricultural productivity growth in a framework of institutional quality

Mirza Nomman Ahmed, Sarah Maas and P. Michael Schmitz

IAMO Forum 2010: Institutions in Transition – Challenges for New Modes of Governance from Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO)

Abstract: This paper addresses the question whether the institutional environment of transition countries in Eastern Europe affects productivity growth in the agricultural sector. Situated in a neoclassical growth framework, a dynamic panel model for the period 1996-2005 provides evidence that poor institutional quality leads to a slowdown in agricultural productivity growth. Productivity growth is limited by a high degree of corruption, which is of particular importance given that corruption has been proven to be most prevalent in Eastern European countries. Moreover, agricultural productivity in countries where privatisation and transferability of land is restricted is found to grow at a slower rate than countries supporting market-oriented land reforms. Interestingly, the results suggest that a high degree of openness leads to a loss in agricultural productivity, suggesting that timing and sequencing of trade reforms matter. An improvement of the poor institutional quality is thus of central importance to accelerate productivity growth in Eastern European countries.

Keywords: Eastern Europe; Transition; Productivity growth (search for similar items in EconPapers)
Date: 2010
New Economics Papers: this item is included in nep-agr, nep-eff and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/52695/1/67652124X.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:iamo10:52695

Access Statistics for this paper

More papers in IAMO Forum 2010: Institutions in Transition – Challenges for New Modes of Governance from Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics (econstor@zbw-workspace.eu).