Property Rights and Farm Efficiency: Evidence from Ukraine
Economic Change and Restructuring, Vol. 44, No. 4, pp. 279-295, 2011
17 Pages Posted: 1 Mar 2011 Last revised: 25 Sep 2020
Date Written: May 10, 2010
Abstract
This paper studies the effect of property rights regime on farm efficiency, using a high-quality representative sample from Ukraine’s agricultural sector. At the farm level, I find that a fully delineated and secure system of property rights leads to large positive gains in efficiency. In Ukraine, farms with a well-defined and enforced governance system have twenty percent higher level of productive efficiency and nine percent higher level of technical efficiency as compared to farms with a contractual incompleteness. The ownership arrangement has profound effect on agricultural production in Ukraine.
Keywords: farm, property rights, economic organization, efficiency, Ukraine
JEL Classification: D23, D24, D61, P26, R15
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