Article

 

MEASURING ENVIRONMENTAL PERFORMANCE: THE CASE OF AGRICULTURAL POLLUTION IN ROMANIA

by

Toma Luiza , Mediterranean Agronomic Institute of Chania

Xepapadeas Anastasios , University of Crete

JEL classification : D620, O130

Abstract

Production processes generate two major types of outputs: desirable, which is strongly disposable, and undesirable, which is weakly disposable. Undesirable outputs are the pollutants associated with agricultural or industrial emissions. Their reduction can only be obtained through environmental regulation at a cost. If the production process generates significant pollution, the relevant efficiency measures that are estimated should allow for the asymmetric treatment of desirable and undesirable outputs. These measures reflect the performance of productive sectors in pollution abatement, in the sense of securing the minimum possible production of pollutants for given production of desirable output, or input use. Measurement of environmental performance has obvious significance for policy purposes. This article measures environmental performance in selected agricultural sectors in Romania, since agricultural activities are a major source of pollution especially, of the nonpoint source type.

 

 

ENVIRONMENTAL INDICES FOR CEECs

by

Dimitrios A. Giannias, University of Crete

Georgios A. Giannias, European Center for Economic and Technical Studies (EKOM)

JEL classification : O130, O180

Abstract

The development of environmental indices can be extremely useful just as indices of prices, unemployment, etc. The locational decisions of economic agents depend on various aspects of the environment and composite indices could provide the necessary information to economic agents. This paper develops a composite index which is offered for a comparative evaluation of the environment conditions in the former Eastern Europe and Greece, obtains rankings based on the values of the environmental indices, and investigates the meaning of the composite index in terms of microeconomics. An analysis of consumer behaviour that the indices should be weighted by a set of weights that is hold constant across regions. The analysis indicates that according to our index criterion among the Central and East European countries and Greece, Czechoslovakia is on the top of the ranking followed by Hungary, Bulgaria, Romania, Poland, Greece, and Albania.

 

 

INTEGRATION OF AGRICULTURAL PRODUCTION, ENVIRONMENTAL PROTECTION AND SOCIAL STABILITY:A MODEL BASED APPROACH FOCUSED ON THE CEECS

by

Volker Mothes, Institute of Agricultural Development in Central and Eastern Europe, Halle

JEL classification : D240, O130, Q180

Abstract

The development of the agricultural production in CEECs during the period of transformation requires some specific agrarian and environmental decisions. Inside a frame, provided by the general economic conditions and the respective national policy, such decisions are mainly made on farms, but the connection to some communal and regional aspects is clearly recognisable. In the quest for a Sustainable agricultural development the decision makers increasingly need information about the interrelation between economy, the environment and the social effects resulting from it. Connecting the Geographic Information System (GIS) with different models can be used for simulating some of the economic and environmental consequences that may result from the different decisions. This paper describes the requirements that are put to such an approach. Furthermore, it sums up some initial experiences in applying this information technology.

 

 

EFFECTS ON THE ENVIRONMENT OF THE RESTRUCTURING OF HUNGARIAN AGRICULTURE

by

Gábor Szabó , Pannon University of Agriculture, Kaposvár, Hungary

JEL classification : O130, P230, P270

Abstract

The Hungarian national economy is among those presently operating on a transitional economic system. In agriculture the situation is not stable, too.Land property and land use conditions, the structure of the system of production, market conditions, etc. are all in a state of flux. The general shortage of capital represents a particularly significant problem with respect to the future of agricultural production. In the course of the discussion of this topic two megatrends in world agriculture emerge: increased emphasis on market conditions and the consideration of interests relating to environmental protection and nature conservation are to be borne in mind. This paper outlines the major changes which have taken place in Hungarian agriculture in the 1990s, overviews of the consequences of these changes with respect to environmental protection and nature conservation, and identifies the problems that must be solved urgently.

 

 

AN AGRICULTURAL POLICY ANALYSIS SIMULATOR: THE CASE OF ALBANIA

by

Karadeloglou P., University of Athens

Mergos G., University of Athens

Panethimitakis P. , University of Athens

Stoforos C., University of Athens

JEL classification : P230, P270

Abstract

Studying the agricultural price policy system under transition to market has merit from a theoretical as well as a policy point of view. This paper presents a synthetic (econometric and simulation) model for the agricultural sector of Albania. Three different policy simulations related with both the evolution of income and of prices were constructed. The first scenario was related to a successful developing effort of the Albanian economy increasing thus the income by more than the percentage assumed in the baseline; the second scenario assumes that in the course of price liberalisation, relative prices undergo a significant change; finally, the last scenario assumes that there will be a sharp increase in the price of the fertiliser effecting thus both the cultivated area and the yield. The analysis specifies policy options for the Albanian economy able to cause important changes on production, consumtion and on the self-sufficiency of the country.

 

 

RECONCILIATION OF CROPS AND LIVESTOCK ON SMALL-SCALE FARMS IN HUNGARY: A CASE STUDY ON ECOLOGICAL AND ECONOMIC SUSTAINABILITY

by

Csaba B. Illés, Gödöllõ Agricultural University

László Podmaniczky, Gödöllõ Agricultural University

JEL classification : P230, P270, O130

Abstract

The paper focuses on an unfavourable agricul¬tural region of Hungary and presents a model which integrates some ecological and economic principles of sustainability into the agricultural production of the region. The farming model has been prepared considering the current farming methods and the natural condi¬tions. Enterprise/farming strategies are evaluated with indices characterising sustainability of the ecological environment, as well as with the tools of the traditional eco¬nomics. With the help of the model the cost-return relations and interactions of different agricultural activities are analysed, and the profit-making potentialities of each alternative are identified. Using sensitivity analysis methods the “reaction” of the alternatives on the negative eco¬nomic changes which are likely to occur is examined. The support-demand and economic sustainability of the alterna¬tives were compared to investment-profitability. The analysis focuses, too, on the changes of nitrogen balance of each successive alternative.

 

 

ENVIRONMENTALLY OPTIMAL LOCAL WATER MARKETS

by

Dimitrios A. Giannias, University of Crete

JEL classification : D620

Abstract

A model is presented that incorporates water quantity and quality aspects and a market based system is developed to characterize optimum water allocations between two regions or countries or among users within a region. A methodology is developed to compute the market water quantity and quality price that would prevail in a local market and the methodology is illustrated using the water allocation problem between Greece and Bulgaria concerning Nestos river.

 

 

HUNGARIAN AGRICULTURE AND EU HARMONISATION

by

Ferenc Nyujtó, Budapest, Ministry of Agriculture of Hungary

JEL classification : P270, O130, F150

Abstract

Hungary faces significant economic challenges concerning its macroeconomic environment and agricultural sector. Currently two Hungarian agricultural factor markets do not follow EU practice for free market operation. This discourages equity investment and raises investment risk because of the lack of collateral and emphasis on short and medium term debt. The general success of EU investment incentives is founded on the "capital inertia" represented by land values (market valuations), land as a semi-liquid asset (can be sold) and the existence of long term finance (mortgages). From the point of view of Hungary’s accession to the EU, agro-food sector is one of the key areas. Given the intention of Hungary to join the European Union, integration has become a definite element, even a priority for the Hungarian agricultural policy. In line with the European Agreement, the analysis shows that an harmonisation process has been started.

 

 

CHARACTERISTICS OF AGRICULTURAL SMALL-SCALE PRODUCTION IN THE RESTRUCTURING OF HUNGARIAN AGRICULTURE

by

József Molnár, Gödöllõ Agricultural University, Hungary

JEL classification : P230, P270, O130

Abstract

An analysis of agricultural small-scale production is essential for an understanding of the restructuring process of the Hungarian agriculture and the ‘Hungarian model’. The cooperative and state farm structure of Hungary was created in the past three decades and they used 90 % of agricultural land. Its efficiency was internationally recognized given that the sector was characterized by modern technology and well-educated specialists. Alongside these small-scale production has survived and filled an essential function. It provided one-third of gross agricultural production in 10this paper.

 

 

ANALYSIS OF MARKET AND ECONOMIC POLITICAL ADAPTATION OF SMALL AGRICULTURAL ENTERPRISES

by

János Puskás, University of Agricultural Sciences, Gödöllõ

László Villányi, University of Agricultural Sciences, Gödöllõ

JEL classification : P270, O130

Abstract

Small scale farmers are educated and experienced in Hungary. The market for agricultural inputs is developing. Its main problem, however, is financial. The production has decreased significantly and without good machinery, basic fertilizer, quality seeds, effective plant protection etc. the situation could hardly change. Small scale farming is in a difficult situation and the agricultural policy and the market do not accomodate the middle term (2-4 years) planing. This situation is analysed in the paper; the lack of efficient information flow between the policy makers and the farmers is identified to be a major obstacle. The agricultural production must be relatively stable in order to have a relatively stable food production which is very important for the transition process of Hungary.

 

 

IMPACT OF PRICE AND TRADE POLICY CHANGES DURING TRANSITION IN ROMANIA: THE CASE OF CEREALS AND OILSEEDS

by

Carmen Clapan, Mediterranean Agronomic Institute of Chania

George J. Mergos, University of Athens

JEL classification : P230, P270, F140

Abstract

This study focuses on the changes of Romanian agricultural policy and trade concerning cereals and oilseeds. The impact of price changes on agricultural producers and on production incentives during the transition period is analysed. Standard methodology is used for the calculation of the nominal protection coefficients and producer subsidy equivalents for the main cereals and oilseeds. The study finds that: the changes in agricultural policy have brought confusion and uncertainty; the low integration of the free market and the poor organisation of the distribution channels have allowed government agencies to keep the monopolistic position for the state in purchasing agricultural products; tariffs are generally low, and the authorities have avoided the use of quantitative restrictions on imports despite difficulties with the balance of payments; there is an indirect taxation in agriculture which is becoming larger over time; and the government distorts the relative prices of the commodities analysed.

 

 

AN ANALYSIS OF POVERTY IN SLOVENIA USING THE 1993 HOUSEHOLD BUDGET SURVEY

by

George J.Mergos, University of Athens

Konstantina N. Pentaraki, Mediterranean Agronomic Institute of Chania

JEL classification : I300, P210

Abstract

The purpose of this paper is to present the level of poverty of Slovenian households during transition. The analysis of the economic position of Slovenian households is based on data gathered through the 1993 survey of the Statistical Office of the Republic of Slovenia. In the analysis of poverty, we specify different poverty lines. The analysis uses the method of equivalent members by applying equivalent scales proposed by OECD. In examining the economic position of Slovenian households, statistical measures on poverty and income distribution are calculated. It is found that 17.9% of the Slovenia sample is classified as poor which is the poverty rate closer to the goverment stated one. Furthermore the analysis on poverty is related to socioeconomic characteristics of Slovenian households, providing a complete profile in Slovenia for the year 1993.

 

 

RURAL TOURISM IN HUNGARY: CHARACTERISTICS OF SPONTANEOUS DEVELOPMENT

by

Dezső Kovács, University of Agricultural Sciences, Gödöllõ

JEL classification : P210, L830

Abstract

Rural tourism is an important source of income for farmers in less favourable farming areas with natural attractions and amenities. Rural/village tourism in Hungary is in its initial stages. However, the general reasons for development are the same as in western countries- diversification of the family economy, generation of additional income, exploiting both rural amenities and the existing physical, human and cultural capital of rural communities. The aim of the paper is to describe the characteristics of spontaneous rural/village tourism development occurred in the past decades in Hungary and compare it to these of the EU and other countries.

 

 

RESTRUCTURING IN THE HUNGARIAN FOOD MARKETING SYSTEM

by

Márton Szabó, Research and Information Institute for Agricultural Economics, Budapest

JEL classification : L790, P210

Abstract

The paper is discussing the "old" food marketing system at the late eighties in Hungary, the changes which happened in the nineties - dissappearance of old, as well as the emergence of new market players and new marketing institutions, old players in new roles and integration/disintegration of marketing functions - the operational problems of the food marketing system and, in conclusion, I make some recommendations first of all to the government how to improve the efficiency of the system.

 

 

THE BILATERAL TRADE BETWEEN HUNGARY AND GREECE: SOME COMPARISONS OF BASIC FOREIGN TRADE INDICES OF THE 1981 - 89 AND 1990 - 94 PERIODS

by

Dimitris Kyrkilis, University of Macedonia

Evangelos Nikolaidis, University of Crete

JEL classification : F190

Abstract

The aim of this paper is to investigate the bilateral trade between Greece and Hungary. The paper explorers the intertemporary evolution of trade floes between the two countries since 1981 in both the aggregate and sectoral level. It focuses on the issue of whether or not the bilateral trade shows any specialization different from the international specialization of both countries, and it points out products and sectors of particular competitiveness in the bilateral exchanges. Finally, attention is paid in quantitative and qualitative changes accruing after 1989 that may provide some insight on the future of bilateral trade relations. The results show that bilateral exchanges play a minimal role in total international trade for Greece. Both imports and exports are highly concentrated in a limited number of sectors. The pattern of this concentration differs between exports and imports.

 

 

CHARACTERICTICS OF FOOD CONSUMER BEHAVIOUR IN HUNGARY

by

Ágnes Horváth, University of Agricultural Sciences of Gödöllõ

József Lehota, University of Agricultural Sciences of Gödöllõ

JEL classification : M310

Abstract

As a result of a long lasting recession in Hungary, households are forced to face qualitative and quantitative restrictions on food consumption. This paper presents the results of a cluster analysis that was carried out on the basis of price-quality and time factors. The analysis identifies seven consumer groups. The relevant segments are discussed and compared.

 

 

THE TRANSITIONAL ECONOMY: A THEORETICAL APPROACH

by

Annika Charalambidou, Economic University of Athens

JEL classification : P270, P160

Abstract

The articles develops a theoretical framework of analysis for economies in transition. This shows that the economics of transition face unavoidable economic deterioration during the process of changing to a new economic system. This is the unavoidable concomitant of radical change that has to overcome the enormous structural distortions of the economy of "existing socialism" and the difficulties of people and firms to adjust to the new economic conditions. The transitional period in the CEE countries cannot be brief given the nature of the changes. The overthrow is radical and there is a need of both experimentation and often tactical retreats as a result of the inexperience of the reformers, the opposition of their opponents and the insufficient support of the international community. Russia faced all major problems (identified in the analysis) to a greater extent than other CEEs.

 

 

INTER-ORGANIZATIONAL NETWORKS AND THE DYNAMICS OF ECONOMIC TRANSFORMATION

by

Yorgos Rizopoulos, ERSI, University of Picardie, ROSES-CNRS, University of Paris-I

JEL classification : P210, P270

Abstract

The recent institutional forms originated from the Soviet period and radical top-down reforms have no impact on the behaviour and relations among economic actors. The weakening of state control and the development of private property did not create economic agents interacting through price signals. The abolition of administrated economy do not erase the historical memory of socio-economic actors and the destructuration of networks did not imply their total destruction. Based on their former experiences, economic actors re-organize themselves. New institutions arise from the old and this is not «a common place». This is a very different approach. The dynamics of change depend on the system to be changed and this is fully explained in the paper. Action of actors composing the system determine the future institutional framework and the type of relations. The analysis shows that the new legal structure is unlikely to evolve through an exclusively top-down process.

 

 

ROMANIA’S TRADE SECTOR UNDER TRANSFORMATION

by

Christina Esanu, Mediterranean Agronomic Institute Chania

Konstadinos Mattas, Aristotle University of Thessaloniki

JEL classification : P210, P270, F140

Abstract

Seven years after the political upheavals of 1989, there are promising signs that reform is under way. After facing acute supply-side constraints, reduced levels of output and various shortages, certain sectors have started showing some dynamism. It is notorious, thus, that the Romanian trade pattern has notably changed under the impact of both domestic effort aiming at stabilisation, and external developments, the dissolution of the ex-Council for Mutual Economic Assistance (CMEA) system of trade and payments being one of the most dramatic. This article presents a picture of Rumania’s economic relations pattern taking a brief look into the past. It also focuses on the profound changes occurred after 1989, which led to a growing role of the market institutions and of the private ownership. Finally, it identifies the reorientation of Rumania’s geographic trade among EU and Central and Eastern transforming economies.

 

 

LIFE IN THE CEECs AND THE EU FUNDING PROGRAMMES

by

Dimitrios A. Giannias, University of Crete

JEL classification : R580, O120

Abstract

Quality of life indices get special attention because of their all inclusive nature which focuses on location specific characteristics. An analysis of consumer’s decision making indicates that the weights used for the regional amenities considered and included in the index should not vary across regions. Given this, a quality of life index is computed for Albania, Bulgaria, Czechoslovakia, Hungary, Poland, and Romania assuming that all amenities are equally weighted. All amenities considered are scaled from 0 - 100, so that the index is independent of units of measurement. According to the adopted quality of life criterion Romania is on the top of the ranking followed by Poland, Czechoslovakia, Albania, Bulgaria, and Hungary. A comparison of the quality of life values with the per capita Phare funding indicate that the allocation of funds supports the integration process the Central and East European Countries.

 

 

FDI AND UNCERTAINTY: AN EMPIRICAL APPROACH USING GREEK AND HUNGARIAN DATA

by

Anastasios G. Karasawoglou, TEI of Kavala

Konstantinos P. Katrakilidis, Aristotle University of Thessaloniki

Nikolaos M. Tabakis, Aristotle University of Thessaloniki & TEI of Thessaloniki

JEL classification : F210

Abstract

The object of this paper is to investigate empirically the macroeconomic determinants of foreign direct investment (FDI) inflows in Greece and Hungary and to shed light on the matter of exchange rate and inflation uncertainties affecting the FDI decisions. The empirical analysis employs GARCH techniques to model the uncertainty variables as well as Granger-Causality tests in conjunction with variance decompositions to detect the relative contribution of the explanatory factors on the FDI decisions.

 

 

EXCHANGE RATE POLICY IN TRANSITION ECONOMIES: THE INITIAL CHOICE AND THE SUBSEQUENT EXPERIENCE

by

Christos Papazoglou, University of Crete

JEL classification : F310, P270

Abstract

The paper focuses on the exchange rate policies of economies in transition and finds a significant degree of convergence of exchange rate policies. The empirical evidence is neither accidental nor opposing to the generally accepted view. Which is strengthened by the case of the six countries studied. The analysis shows that a fixed exchange rate may be especially useful anchor in the initial stages of liberalization, where price stabilization is given higher priority, and that a pegged exchange rate may not be the most appropriate policy choice during the subsequent stages of the transition process. Convergence of exchange rate policies occurs as these economies move into the latter stages of transition. This actually reflects a shift away from the two polar cases of either fixed or flexible exchange rates since for the majority of the transition economies the main reasons for initially adopting such regimes have ceased to exist.

 

 

THE POLITICAL ECONOMY OF EXPLICIT AND IMPLICIT EU POLICIES TOWARDS CEECs: AN OVERVIEW

by

V. Pesmazoglou, University of Crete

JEL classification : E400, F310, P270

Abstract

Since the late 1980s, the far-reaching political and economic transformations in central and eastern Europe and in the ex-USSR have been linked in many ways with the relationship of this area with the European Community (E.C.) - now European Union (E.U.). These linkages are of an economic but also of a political, strategic and even cultural-ideological nature: the E.U. represents an anchor of security and democratic stability, as well as a model of socio-economic organisation (Hyde-Price, 1996). This paper presents in a succint form the major economic issues explicitly or implicitly at stake in the relations of central and eastern European countries (CEECs) with the E.U. and the eventual eastern EU enlargement. Relevant security and geopolitical considerations, albeit of paramount importance, shall be mentioned where appropriate but will not be analysed.

 

 

COMPARISONS OF ASPECTS OF LIFE IN THE CEECs AND THE FSU

by

Dimitrios Giannias, University of Crete

Georgios Giannias, European Center for Economic and Technical Studies (EKOM)

JEL classification : O120, R580, O180

Abstract

Quality of life indices get special attention because of their all inclusive nature which focuses on location specific characteristics. An analysis of consumer’s decision making indicates that the weights used for the regional amenities considered and included in the index should not vary across regions. Given this, a quality of life index is computed for Albania, Bulgaria, Czechoslovakia, Hungary, Poland, Romania, Yugoslavia, USSR, and Greece assuming that all amenities are equally weighted. All amenities considered are scaled from 0 - 100, so that the index is independent of units of measurement. According to the adopted quality of life criterion Romania is on the top of the ranking followed by Yugoslavia, Poland, Czechoslovakia, Albania, Bulgaria, and Hungary. The Former-USSR scores higher and Greece lower than all of them.