About the Governance Efficiency of Agricultural Farms. The Case of Bulgaria
The New Institutional Economics framework is incorporated and a practical approach for assessing the level and factors of governance efficiency of Bulgarian farms suggested. The evaluation is made on the basis of original micro-data collected by the managers of typical farms of different type and location. The "Nature of the problems in effective organization for major class farm transactions for securing needed factors of production and output marketing" is used as an indicator for the comparative efficiency and adaptability of individual farms.
The study found that the governance efficiency of farms is at a Good level but 60% of all holdings are with a Low efficiency. Major factors for inferior governance efficiency of farms are unsatisfactory efficiency in supply of necessary labor, innovations and know-how, and funding. There is a huge variation in the level and factors of governance efficiency of farms with different juridical types and sizes as well as in the share of farms with different levels of efficiency in each group. A strong correlation is found between the level of governance efficiency of farms, and diverse critical internal and external market, technological, institutional, personal, etc. factors. There is a big discrepancy between the “new” assessment of Governance efficiency with dominating traditional approaches for farm efficiency assessments based on factors' productivity. There was an improvement in the overall governance efficiency of farms during 2016-2020 but the share of efficient farms significantly declined during the period.
Bachev, H. 2022. About the Governance Efficiency of Agricultural Farms. The Case of Bulgaria, Journal of Applied Economic Sciences, Volume XVII, Spring, 1(75): 5 – 20. https://doi.org/10.57017/jaes.v17.1(75).01
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