Determinants of Efficiency and Productivity Measures for Agriculture in Transition Economies

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The objectives of this study were to identify the determinants for productivity and production efficiency in the transition economies of Central Europe and Southeast Asia and to derive policy implications for sustainable development in agriculture. The impacts of the EU integration in Central Europe and trade liberalization through joining the WTO and the ASEAN in Southeast Asia were examined. The national level examinations for the transitions economies were undertaken.The divergence in performance of total factor productivity (TFP) has been observed among the new member countries as well as old member countries in the European Union after the enhancement of the European Union in 2004. The study team argued that the introduction of the second pillar of agricultural development in the common agriculture policy (CAP) has created this divergence in productivity among member countries. The divergence has not been observed in Asia unlike the European Union. Among ASEAN countries, new memberships for ASEAN and WTO served as sources for the improvement in TFP.The significant contributions of regional cooperation and economic integration to agricultural development have been proved in this study. Thus, the importance of the strategic approach on international trade and regional cooperation has been derived as policy implication.