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Abstract

The break-up of large-scale agricultural production units into individually operated farms differs considerably across East Central Europe and the Former Soviet Union. Large-scale successor organizations to the former state and collective farms still dominate in Slovakia, Hungary, the Czech Republic, and in most states of the Former Soviet Union. In Albania, Armenia, and Latvia, a massive break-up of the collective farms resulted in a domination of smaller scale individual farms. Also within countries there exist wide variations in the decollectivization process between different regions and agricultural subsectors. We develop an economic model of decollectivization to explain these variations and derive a series of propositions regarding factors affecting the decollectivization process. Our empirical analysis presents correlations between decollectivization and our explanatory variables. Specifically, they suggest the importance of relative productivity, factor intensity and privatization and decollectivization procedures in explaining decollectivization differences between countries.

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