Labour adjustment in agriculture: Assessing the heterogeneity across transition countries

A standard model of labour adjustment in times of economic transition assumes a constant impact of variables like sectoral income differences, unemployment or the relative size of the agricultural sector. This paper shows for a panel of 29 European and Asian transition countries that the standard model fails to take the heterogeneity of determinants of sectoral labour adjustment properly into account. A random coefficients model reveals quite heterogeneous influences of the intersectoral income ratio, the relative size of agricultural employment, the unemployment rate, and the general level of economic development on a measure of sectoral labour adjustment across transition countries. Moreover, for selected determinants the estimated coefficients show opposing signs.Labor and Human Capital,

Labor Market Participation of Chinese Agricultural Households

This work is devoted to the analysis of the different labor market participation regimes of Chinese farm households. Using household data over the period 1986-2000 from the province Zhejiang, we apply a multinomial logit model to empirically examine household, farm, and regional characteristics affecting the probability that farmers employ one of four alternative labor market regimes. Results suggest that labor market decisions are significantly related to several personal, farm, and village attitudes. In addition, we find the more market oriented policy reforms at the end of the 1980s stipulated that households participate in labor markets while the more anti-market reforms during the 1990s led to the opposite and encouraged autarky.China, labor markets, agricultural household, participation, multinomial logit, Consumer/Household Economics, Labor and Human Capital, D13, J24, J43, Q12,

The Persistence of Poverty in Rural China: Applying an Ordered Probit and a Hazard Approach

The present study investigates the analysis of poverty persistence of Chinese farm households in the well-off Zhejiang province in the southeast. We firstly apply an ordered probit model examining household, farm, and regional characteristics affecting the probability that households are chronically poor. In addition, we apply a hazard approach to identify the risk of falling into and climbing out of poverty. Results indicate that there are increasing chances to climb out of poverty over time, and that the risk of falling into poverty seems to decrease after the household spent some time outside poverty.Poverty persistence, China, rural population, hazard analysis, dynamics, Food Security and Poverty, C23, D1, I32, R29,

The Dynamics of Chinese Rural Households' Participation in Labor Markets

The work focuses on the frequency of each possible transition between labor market participation regimes of rural Chinese households. A continuous hazard approach is applied to empirically evaluate factors, as household, farm, and regional characteristics affecting the frequency of transition between labor market participation states. Results suggest that there are frequent changes of labor market participations regimes among the househo lds. Given the change in external conditions and other factor end owments this might indicate that households quickly response in allocating labor in order to equilibrate the resources. Further, we find that there are good chances climbing out of autarky; however the probability to fall in autarky was also remarkable over time.Labor market participation, dynamic analysis, China, hazard model, rural households, Labor and Human Capital, C41, J60, Q12,

Market power of German food and beverage industries on international markets

In this paper the existence and magnitude of market power for German beer, cocoa powder, chocolate, and sugar confectionary exporters are tested. Two theoretical approaches are employed, the 'pricing of market' (PTM) and the 'residual demand elasticity' (RDE) approach. Even though all markets show a significant violation of the 'law of one price' estimations for monthly data from 1991 to 1998 reveal that markets are in most cases perfectly competitive. However, while in some cases significant market power is indicated for the PTM approach, the RDE results do not support these findings. This leads to the conclusion that the underlying theoretical models fail to consistently match the observed price equilibria on the market under study. --

Market Power of the German Beer Industry on Export Markets - An Empirical Study -

In this paper the existence and magnitude of market power for the German beer exporters is tested. Two theoretical approaches to model incomplete competition on international markets are employed, the ?pricing to market? (PTM) model the ?residual demand elasticity? (RDE) approach. Estimations for both models over the period from 1991 to 1998 reveal incompatible results regarding the underlying theoretical models and with respect to the approach that is used. While significant market power is indicated in the PTM model, the RDE approach signalizes perfect competition. This leads to the conclusion that the underlying theoretical models have to be extended to consistently match the observed market solutions in this case. --

Measuring flexibility of multi-output firms: a primal and a dual measure

Industrial Organization,

INFLUENCES OF THE GOVERNMENTAL MARKET INTERVENTIONS ON WHEAT MARKETS IN SERBIA DURING THE FOOD CRISIS 2007/2008

This paper analyzes how the market interventions of the Serbian government during the food crisis 2007/2008, inter alia a de facto export ban, have affected domestic wheat markets. Besides a comprehensive description of the crisis policy and its effects on the Serbian wheat market, we investigate how it influences the equilibrium and stability of the Serbian wheat market and its integration with the world market within a price transmission model. Applying a Markov-switching error correction model to weekly wheat grower prices in Serbia and world market prices, two states of the wheat market are identified. Our results suggest that although the long-run price elasticity did not change during the crisis, the market equilibrium was disrupted and the market stability reduced. Also, we find that the price dampening effect of the export restrictions was only short-lived, and that Serbian wheat grower prices even increased above the world market level.international market integration, Markov-Switching Error Correction Model, Serbia, wheat market, world market price transmission, Agricultural and Food Policy, Crop Production/Industries, C34, Q11, Q13, Q17, Q18,

Oligopsony Power in the Ukrainian Milk Processing Industry: Evidence from the Regional Markets for Raw Milk

Most of the studies based on the New Empirical Industrial Organization (NEIO) approach use the industry data to estimate the degree of market power at the national level. Yet, only a few empirical studies presented the results that measure the degree of market power at the regional level and found the existence of market power in the regional markets. While the fact is that there is an extensive evidence for the existence of potential oligopsony market power in the Ukrainian milk processing industry (price cartels and geographic market sharing among milk processing enterprises, interference of the state authorities, higher concentration on regional markets), the estimation results of the market structure model at the national level did not produce any evidence suggesting the exercise of oligopsony power (the estimated parameter of oligopsony power is close to zero and statistically insignificant). The objective of this study is to estimate the degree of oligopsony power in the regional market for raw milk. The estimation results of the market structure model at the regional level indicate the existence of oligopsony power in nine out of the twenty three regions of Ukraine.New Empirical Industrial Organization (NEIO); Oligopsony Power; Ukraine;

The impact of policy reform on productivity and efficiency in Chinese agriculture: A distance function approach

The study is devoted to the measurement of productivity and efficiency change in Chinese farming sector over the reform process in the 1980s and 1990s. Within an output distance function framework, an index of total factor productivity is decomposed into technical and allocative efficiency, technical change, and scale effects. We estimate a parametric output distance function using individual farm household data from the province Zhejiang over the period 1986-2000. Results indicate that during the more market-oriented reform period in the mid 1980s productivity and technical efficiency increased while allocative efficiency remain constant. However, productivity growth and technical efficiency slow in the mid 1990s when market orientation of the reforms was reduced and self-sufficiency as a major goal reappeared on the political agenda. --productivity growth,efficiency change,China,stochastic distance frontier