Production Efficiency in Ukrainian Agriculture and the Process of Economic Reform

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1996-10-01
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Kurkalova, Lyubov
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Jensen, Helen
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Center for Agricultural and Rural Development

The Center for Agricultural and Rural Development (CARD) conducts innovative public policy and economic research on agricultural, environmental, and food issues. CARD uniquely combines academic excellence with engagement and anticipatory thinking to inform and benefit society.

CARD researchers develop and apply economic theory, quantitative methods, and interdisciplinary approaches to create relevant knowledge. Communication efforts target state and federal policymakers; the research community; agricultural, food, and environmental groups; individual decision-makers; and international audiences.

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A representative sample of 49 state and collective farms in Ukraine provides data in physical units on livestock and crop production and input use for 1989-92. The changes in production efficiency for beef, pork, dairy, winter wheat, grain, and potato production, investigated using stochastic frontier methods, show declining technical efficiency in livestock production and especially low marginal contribution of labor inputs. The number of workers, size of farm, and distance from nearest city are related to efficiency in agricultural production.

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