Governing structures in functional areas of Bulgarian farms

Abstract

Due to insufficient (statistical, official, etc.) information and traditional inadequate (Neoclassical Economics, Agent Theory, etc.) approaches to analysis, there is no complete knowledge of the dominant forms and driving factors of governance in the main functional areas of Bulgarian farms. This article incorporates the interdisciplinary New Institutional Economics framework and identifies the structure of governance and contractual modes used by Bulgarian farms. It is based on original and representative data collected though a survey with the managers of typical farms of different type and location. The contemporary structure, factors and evolution of market, contract, internal, collective and hybrid modes of governance used by country’s farms in the supply of natural, material, biological, financial and human resources, short-term assets, services, innovations, risk management, marketing of farm produce and services, and provision of ecosystem services, are all specified. A comparative study with the governance structures during the period before EU accession of the country is also made demonstrating a fundamental modernization in last decades. The systemic application of incorporated approach is needed but it requires the collection of a new type of (micro)economic data on important characteristics of agricultural agents, different forms of governance of farms activities and relations, and critical dimensions and costs of transactions.

Keywords. Agricultural governance, New Institutional Economics, Contractual arrangements, Farm management, Transaction costs.

JEL. Q12, D23, Q18.

SDGs. SDG2, SDG12.