Competitiveness of Hungarian Agriculture in Connection with Change of its Effectiveness

Takácsné György, Katalin – Takács, István

Keywords: productivity, technical equipment, support, model, European Union, O11, Q12, C72

The article examines the reasons behind the changes in effectiveness and competitiveness of Hungarian agriculture compared to other EU Member States. The paper sums up the main conclusions of the authors’ previous studies on this topic, synthesising their most important findings and conclusions in one study. The paper focuses on the effects of farm structure on productivity, on the factors of willingness to cooperate among farmers. Furthermore it examines the effect of the economic environment – with special regard to agricultural subsidies –, providing a model of the relationship between economic environment, farm development (investment) decisions and cooperation. One of the main conclusions was that the average productivity of Hungarian agriculture increased after Hungary’s accession to the EU, which was not only due to the development in the technical facilities, but also to the efficiency of equipment (capital productivity). At the same time, extensive enlargement was characteristic for crop producing farms, but the improving technical facilities have not increased the capital productivity.

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