Impact of institutional modernization and EU integration on Bulgarian farms

Bachev, Hrabrin (2008): Impact of institutional modernization and EU integration on Bulgarian farms.

Abstract

This paper incorporates achievements of a new inter-disciplinary methodology of the New Institutional and Transaction Costs Economics (integrating Economics, Organization, Law, Sociology, Behavioral and Political Sciences) into analysis of Bulgarian agriculture, and assess impact of institutional modernization and EU integration on farm structures and sustainability. Firstly, the new institutional and transacting costs economics framework is briefly presented concentrating on: evolution of formal and informal institutions; structure of transacting costs and their institutional, behavioral, dimensional and technological factors; comparative efficiency of alternative market, contract, internal, and hybrid modes of governance; farm as a governance structure with a production and transaction optimization function. Secondly, an analysis is made on development of institutional environment for agrarian sector in Bulgaria, and its impact on newly evolving farming structure and on public readiness to implement EU CAP. Third, pace of evolution, and “high” efficiency and sustainability of dominating agro-firms, production cooperatives, subsistence farming, and small commercial farms are explained, and prospects of their development in conditions of EU integration and CAP implementation determined. Forth, specific modes for governing of land supply, and labor supply, and service supply, and inputs supply, and finance supply, and insurance supply, and marketing in different type and kind commercial farms are identified, and their comparative efficiency assessed. Fifth, feasible pace of CAP implementation and further EU integration is projected, and likely impact on economic, environmental, social and organizational sustainability of farms estimated.

• Item Type: MPRA Paper
• Language: English
• Keywords: Farm structures, sustainability, impact of EU integration and CAP, Bulgaria
• Subjects: Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q13 - Agricultural Markets and Marketing ; Cooperatives ; Agribusiness; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q12 - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

References

Bachev H. (2000): Bulgarian Experience in Transformation of Farm Structures, in Farm Management and Rural Planning No 1, Kyushu University, Fukuoka, 181-196

Bachev H. (2004): Efficiency of Agrarian Organizations, in: Farm Management and Rural Planning No 5, Fukuoka, Kyushu University, 135-150

Bachev H. (2005a): National Policies Related to Farming Structures and Sustainability in Bulgaria, in “Implementing the CAP Reform in the New Member States: Impact on the Sustainability of Farming System”, Proceedings of the EU workshop, JRC-IPTS, Seville 2005

Bachev H. (2005b): Assessment of Sustainability of Bulgarian Farms, Paper presented at the XIth Congress of the EAAE, ”The Future of Rural Europe in the Global Agri-Food System”, Copenhagen, Denmark, August 24-27, 2005 www.eaae2005.dk/POSTER_PAPERS/SS34_16_Bachev.pdf

Bachev H. (2006): Governing of Bulgarian Farms – Modes, Efficiency, Impact of EU Accession, in “Agriculture in the Face of Changing Markets, Institutions and Policies: Challenges and Strategies”, editors J.Curtiss, A.Balmann, K.Dautzenberg and K.Happe, IAMO, Halle (Saale), 133-149

Bachev H. and M.Labonne (2000): About Agrarian Innovations, INRA, Montpellier

Bachev H. and M.Tsuji (2001): Structures for Organization of Transactions in Bulgarian Agriculture, Journal of the Faculty of Agriculture of Kyushu University, No 46 (1), Fukuoka 123-151

Coase R. (1937): The Nature of the Firm, Economica 4, 386-495

Coase R. (1960): The Problem of Social Costs, Journal of Law and Economics 3: 1-44

Dupraz P., K.Latouch, and F.Bonnieux (2004): Economic Implications of Scale and Threshold Effects in Agri-environmental Processes, Paper presented at the 90 EAAE Seminar, October 27-29, 2004 Rennes

Furuboth E. and R. Rihter (1998): Institutions and Economic Theory: Contribution of the New Institutional Economics, Ann Arbor, The University of Michigan Press.

Koteva N. and K.Kaneva (2006): Competitiveness of Farms during EU Accession, Agricultural Economics and Management, 5, 29-36

EU (2004): “Sustainability of agriculture in the enlarged Europe under the reformed CAP”, Proceedings of EU workshop, JRC-IPTS, September 23-24, 2004, Seville

EU (2005a): “Implementing the CAP Reform in the New Member States: Impact on the Sustainability of Farming System”, Proceedings of EU workshop, JRC-IPTS, October 6-8, 2005, Seville

EU (2005b): Europe in 12 Lessons, EC, Brussels

EU (2006): Monitoring Report on the State for Preparation for EU Membership of Bulgaria and Romania, Commission of the European Union, September 2006, Brussels

North D. (1990): Institutions, Institutional Change and Economics Performance, Cambridge, Cambridge University Press.

OECD (2000): Review of Agricultural Policies: Bulgaria, OECD, Paris and Sofia. Olson M. (1965): The Logic of Collective Action: Public Goods and the Theory of Groups, Harvard University Press, Cambridge. Sauvenier X., J. Valekx, N. Van Cauwenbergh, E. Wauters, H.Bachev. K.Biala, C. Bielders, V. Brouckaert, V. Garcia-Cidad, S. Goyens, M.Hermy, E. Mathijs, B.Muys, M.Vanclooster. and A.Peeters (2005): Framework for Assessing Sustainability Levels in Belgium Agricultural Systems – SAFE, Belgium Science Policy, Brussels. Williamson O. (1996): The Mechanisms of Governance, New York, Oxford University Press.