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

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. --

Agricultural labour adjustment and the impact of Institutions

The economic transformation in countries of Central and Eastern Europe as well as Asia resulted in a diverse picture of change in agricultural labour use. Based on a measure of sectoral labour adjustment, the paper explores the determinants of occupational labour flows paying special attention to the impact of institutions. Annual rates of occupational migration between agriculture and non-agriculture over the period 1978-2005 are calculated for a panel of 30 transition countries. Annual migration from agriculture ranges from outflows of nearly 8 percent of the agricultural labour force to immigration into agriculture about 9 percent on average. Fixed-effects panel models are used to explain the annual intersectoral labour flow. The most important determinants of the migration rate are the relative income differences between non-agricultural and agricultural sectors, the relative magnitude of agricultural labour, the development of terms of trade and the level of unemployment. Furthermore, the speed of economic reforms and the way of land privatization affect occupational migration significantly. An increasing intersectoral income difference points to still existing mobility restrictions for agricultural labour in some of the countries analyzed

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,

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,

Impacts of Export Controls On Wheat Markets During the Food Crisis 2007/2008 in Russia and Ukraine

This paper investigates the impacts of export controls in Russia and Ukraine on wheat world market price transmission during the 2007/2008 global food crisis. Russia and Ukraine aimed to reduce wheat exports induced by extraordinarily high world market prices to secure sufficient wheat supply on the domestic markets. Utilizing a Markov-Switching vector error correction model (MSVECM), we find that the temporary export restrictions induced negative effects on wheat markets in Russia and Ukraine. Although instability increased on the world markets itself, we have shown that the increase in the market instability was particularly pronounced in Russia and Ukraine. Also, the export restrictions dampened price transmission to the farmers’ prices, which pushed the growers’ prices below their long-run equilibrium level. Thus, investment incentives in wheat production which could result from high world market prices were foregone.International price transmission, wheat market, food crisis, Markov switching error correction model, Russia, Ukraine, Demand and Price Analysis, International Relations/Trade,

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

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,