The Dynamics of Productivity Changes in Agricultural Sector of Transition Countries

Relying on frontier production approach (e.g., Luenberger's shortage function), we investigated the performance of agricultural sector in transition countries and its changes over time, especially focusing on the dynamics of productivity changes. We found that; (i) CEE countries have improved their performance during the sample period whereas CIS have not; (ii) productivity changes in the last decade was attributable to the technical progress; (iii) overall performance was decelerated for the second 5-year sub-period (1997-2001) in both regions; (iv) agricultural reform has positive effects on the productivity and its components especially in CEE countries.