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Variations in Farm Performance in Transitional Economies: Evidence from the Czech Republic 1
Author(s) -
Davidova Sophia,
Gorton Matthew,
Iraizoz Belen,
Ratinger Tomas
Publication year - 2003
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/j.1477-9552.2003.tb00061.x
Subject(s) - restructuring , czech , profitability index , productivity , agriculture , business , debt , agricultural economics , economics , market economy , finance , economic growth , geography , linguistics , philosophy , archaeology
This paper revisits the literature on farm restructuring in the CEECs by analysing the variations in farm performance in the Czech Republic a decade after the start of the transition process. It identifies seven clusters of farms that differ in their productivity and profitability usng data from 1998 and 1999. The analysis reveals that the vast majority of farms are unprofitable, and there is no strong evidence that individual farms perform better than corporate farms. In fact, there are large numbers of individual farms that are loss‐making on their agricultural activity with low factor productivity. Producer co‐operatives and limited liability companies suffer from debts inherited from the reform process. Future restructuring is likely to occur in all clusters rather than affecting just corporate farms.