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Library Path dependency and efficiency of Farm structures in Ukraine's agriculture. A theoretical and empirical analysis.

Path dependency and efficiency of Farm structures in Ukraine's agriculture. A theoretical and empirical analysis.

Path dependency and efficiency of Farm structures in Ukraine's agriculture. A theoretical and empirical analysis.

Resource information

Date of publication
December 2004
Resource Language
ISBN / Resource ID
AGRIS:US2016203148

Ukrainian agriculture is currently in a growth phase, but it is yet not clearwhether this growth is sustainable. The contrast between the potential ofagricultural enterprises and their present desolate condition remains verystriking. At the same time, the role of individual subsidiary holdings inagricultural production has increased substantially. The general economic crisisin agriculture encouraged growth in the number of individual subsidiaryholdings (ISH) and made them the most important agricultural producers inUkraine.The goals of this dissertation are (1) to analyse the development oforganisational forms in Ukrainian agriculture, taking into account historicalfactors, (2) to determine differences between successful and unsuccessfulenterprises, and (3) to determine the relationships (linkages) between ISHs andlarge agricultural enterprises.To fulfill the goals of the dissertation data from 78 large agricultural enterprisesfor 1995-1999 was examined. Moreover, in 2000 and 2002, 90 ISHs from 17large agricultural enterprises were surveyed. The results of all interviews weresummarized, including those that significantly deviated from the average, inorder to present both norms and extremes.The study found a considerable divergence among restructured farm enterprises,both in terms of internal reorganisation and efficiency and in terms ofmanagerial attitudes of new farm managers. Also various historical, economicand other reasons had an impact on the structure of reformed enterprises; thesefactors differ significantly by region in the Ukraine. These differences inagricultural development have their origins in property rights development aswell as in differences of geopolitical position, and, therefore, in the influence ofdifferent cultures. The study emphasizes that in Ukraine there exists a cleartendency to establish agricultural enterprises with many owners and employees.The future development of large agricultural enterprises is entirely depended onsetting up of adequate general economic conditions, consequential internalrestructuring of agricultural enterprises and essential changes in the enterprise’smanagement.The efficiency of ISHs is very strongly affected by how and where they receivetheir production inputs. It may be expected that since there are no incomealternatives and employment possibilities in the rural areas, the ISHs willcontinue to specialize in labor-intensive production such as livestock andvegetable production.

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Nedoborovskyy, Andriy

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