Determinants of technical efficiency in agriculture in new EU member states from Central and Eastern Europe

Technical efficiency in agriculture of 10 new EU member states is analysed by Data Envelopment Analysis and econometric panel data analysis. Technical efficiency in agriculture is significantly positively associated with agricultural factor endowments, average farm size, farm specialisation, small-scale farms, and technological change. Foreign direct investments have an ambiguous effect. Reform and institutional developments, large-scale privatisation and price liberalisation, and urban- rural income gap are associated with technical efficiency in agriculture positively. An increase in technical efficiency in agriculture and the development of the rural economy are seen as a strategy to boost the level of living standards in agriculture and in rural areas.