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Production Organization and Efficiency during Transition: An Empirical Analysis of East German Agriculture

Erik Mathijs and Johan F. M. Swinnen
The Review of Economics and Statistics
Vol. 83, No. 1 (Feb., 2001), pp. 100-107
Published by: The MIT Press
Stable URL: http://www.jstor.org/stable/2646693
Page Count: 8
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Production Organization and Efficiency during Transition: An Empirical Analysis of East German Agriculture
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Abstract

Enterprise restructuring is expected to improve efficiency in transition economies. With data from former East Germany, we compare the efficiency of family farms and partnerships with large-scale successor organizations of the collective and state farms (LSOs). Using parametric and nonparametric techniques, we show that LSOs display lower technical efficiency than do family farms and partnerships but that this difference is small and declining during transition, mainly as a result of structural changes in agriculture. Family farms are not as scale efficient as partnerships and LSOs, and partnerships are superior to all other organizational forms.

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