BULLETIN of the Szent István University

Átírás

1 BULLETIN of the Szent István University SPECIAL ISSUE PART II. Gödöllő 2008

2 Editorial Board Prof. György Füleki CSc. Chairman of the Editorial Board Prof. Miklós Mézes DSc. editor Prof. Béla M. Csizmadia CSc. Prof. Tamás T. Kiss CSc. Prof. Gyula Huszenicza DSc. Prof. Gábor Reischl DLA Prof. István Szűcs DSc. Edited by the Guest Editorial Board Katalin Takács-György CSc, Chairman of the Guest Editorial Board József Lehota DSc István Takács PhD László Villányi CSc With the support of Faculty of Economics and Social Sciences, Szent István University Management and Business Administration PhD School of Szent István University Szerkesztőség Szent István Egyetem 2103 Gödöllő, Páter Károly u. 1. Kiadja a Szent István Egyetem Felelős kiadó Dr. Solti László egyetemi tanár, rektor Technikai szerkesztő Szalay Zsigmond Gábor Felelős szerkesztő Dr. Mézes Miklós egyetemi tanár ISSN Megjelent 380 példányban

3 Foreword Tradition and Innovation International Scientific Conference of (Agricultural) Economists Szent István University, Gödöllő, 3-4 December, 2007 Tradition and Innovation International Scientific Conference was held on December 3-6, 2007, in the frames of the anniversary programme series organized by the School of Economics and Social Sciences of the Szent István University. The aim of the conference was to celebrate the 50th anniversary of introduction of agricultural economist training in Gödöllő, and the 20th anniversary of the School of Economics and Social Sciences, which was founded in The articles published in the special edition of Bulletin 2008 of the Szent István University were selected from the 143 presentations held in 17 sections of the conference and 30 presentations held at the poster section. The presentations give a very good review of questions of national and international agricultural economics, rural development, sustainability and competitiveness, as well as the main fields of sales, innovation, knowledge management and finance. The chairmen of the sections were Hungarian and foreign researchers of high reputation. The conference was a worthy sequel of conference series started at the School of Economics and Social Sciences in the 1990s. Előszó Tradíció és Innováció Nemzetközi Tudományos (Agrár)közgazdász Konferencia Szent István Egyetem, Gödöllő, december december 3-6. között a Szent István Egyetem Gazdaság- és Társadalomtudományi Kara (SZIE GTK) által szervezett jubileumi rendezvénysorozat keretében került megrendezésre a Tradíció és Innováció Nemzetközi Tudományos Konferencia, amelynek célja volt, hogy méltón megünnepelje a gödöllői agrárközgazdász képzés fél évszázada történt elindítását, s ugyanakkor a Gazdaság- és Társadalomtudományi Kar 1987-ben történt megalapításának 20. évfordulóját. A Szent István Egyetem által kiadott Bulletin 2008 évi különszámában megjelentetett cikkek a konferencián 17 szekcióban elhangzott 143 előadásból, illetve a poszter szekcióban bemutatott 30 előadásból kerültek kiválasztásra. Az előadások jó áttekintést adtak a hazai és nemzetközi agrárközgazdaság, vidékfejlesztés, a fenntarthatóság és versenyképesség kérdései mellett az értékesítés, innováció, tudásmenedzsment, pénzügy fontosabb területeiről is. Az egyes szekciók elnöki tisztjét elismert hazai és külföldi kutatók töltötték be. A konferencia a Gazdaság- és Társadalomtudományi Karon az 1990-es években elkezdett konferencia sorozat méltó folytatása volt. Dr. László Villányi Dean / dékán

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5 Contents / Tartalomjegyzék Part I. / I. kötet Agricultural and rural development and international view Agrár- és vidékfejlesztés, nemzetközi kitekintés ÁCS, SZ. DALLIMER, M. HANLEY, N. ARMSWORTH, P.: Impacts of policy reform on hill farm incomes in UK BIELIK, P. RAJČÁNIOVÁ, M.: Some problems of social and economic development of agriculture BORZÁN A. SZIGETI C.: A Duna-Körös-Maros-Tisza Eurorégió gazdasági fejlettségének elemzése a régiók Európájában CSEH PAPP, I. Regionális különbségek a magyar munkaerőpiacon NAGY, H. KÁPOSZTA, J.: Convergence criteria and their fulfilment by the countries outside the Euro-zone OSZTROGONÁCZ, I. SING, M. K.: The development of the agricultural sector in the rural areas of the Visegrad countries PRZYGODZKA, R.: Tradition or innovation which approach is better in rural development? The case of Podlasie Region TAKÁCS E. HUZDIK K.: A magyarországi immigráció trendjei az elmúlt két évtizedben TÓTHNÉ LŐKÖS K. BEDÉNÉ SZŐKE É. GÁBRIELNÉ TŐZSÉR GY.: országok összehasonlítása néhány makroökonómiai mutató alapján VINCZE M. MADARAS SZ. Analysis of the Romanian agriculture in the period of transition, based on the national accounts Agricultural trade and marketing Agrárkereskedelem, marketing ADAMOWICZ, M.: Consumer behavior in innovation adaptation process on fruit market 125 FÉNYES, T. I. MEYER, N. G. BREITENBACH, M. C.: Agricultural export and import assessment and the trade, development and co-operation agreement between South Africa and the European Union KEMÉNYNÉ HORVÁTH ZS.: The transformation of market players on the demand-side of the grain market LEHOTA J. KOMÁROMI N.: A feldolgozott funkcionális élelmiszerek fogyasztói szegmentálása és magatartási jellemzői LEHOTA J. KOMÁROMI N.: Szarvasgomba fogyasztói és beszerzési magatartásának szegmentálása és jellemzői NYÁRS, L. VIZVÁRI, B.: On the supply function of the Hungarian pork market SZAKÁLY Z. SZIGETI O. SZENTE V.: Fogyasztói attitűdök táplálkozási előnyökkel kapcsolatban SZIGETI O. SZENTE V. MÁTHÉ A. SZAKÁLY Z.: Marketing lehetőségek az állati eredetű hungarikumok termékpályáján VÁRADI K.: Társadalmi változások és a marketing kapcsolatának modellezési lehetőségei

6 Sustainability and competitivness Fenntarthatóság, versenyképesség BARANYAI ZS. TAKÁCS I.: A hatékonyság és versenyképesség főbb kérdései a délalföldi térség gazdaságaiban BARKASZI L.: A kukoricatermesztés hatékonyságának és eredményességének vizsgálata évi tesztüzemi adatok alapján JÁMBOR A.: A versenyképesség elmélete és gyakorlata LENCSÉS E.: A precíziós gazdálkodás ökonómiai értékelése MAGÓ, L.: Low cost mechanisation of small and medium size plant production farms SINGH, M. K. KAPUSZTA, Á. FEKETE-FARKAS, M.: Analyzing agriculture productivity indicators and impact of climate change on CEECs agriculture STRELECEK, F. ZDENĚK, R. LOSOSOVÁ, J.: Influence of farm milk prices on profitability and long-term assets efficiency SZÉLES I.: Vidéki versenyképesség-versenyképes vidékfejlesztés: AVOP intézkedések és azok kommunikációjának vizsgálata SZŐLLŐSI L. NÁBRÁDI A.: A magyar baromfi ágazat aktuális problémái TAKÁCS I. BARANYAI ZS. TAKÁCS E. TAKÁCSNÉ GYÖRGY K.: A versenyképes virtuális (nagy)üzem TAKÁCSNÉ GYÖRGY K. TAKÁCS E. TAKÁCS I.: Az agrárgazdaság fenntarthatóságának mikro- és makrogazdasági dilemmái Authors index / Névjegyzék

7 Part II. / II. kötet Economic methods and models Közgazdasági módszerek, modellek BARANYI A. SZÉLES ZS.: A hazai lakosság megtakarítási hajlandóságának vizsgálata367 BHARTI, N.: Offshore outsourcing (OO) in India s ites: how effective it is in data protection? BORSZÉKI É.: A jövedelmezőség és a tőkeszerkezet összefüggései a vállalkozásoknál FERTŐ, I.: Comparative advantage and trade competitiveness in Hungarian agriculture JÁRÁSI É. ZS.: Az ökológiai módon művelt termőterületek nagyságát befolyásoló tényezők és az árutermelő növények piaci pozíciói Magyarországon KODENKO J. BARANYAI ZS. TAKÁCS I.: Magyarország és Oroszország agrárstruktúrájának változása az 1990-es évektől napjainkig OROVA, I. KOMÁROMI, N.: Model applications for the spread of new products in Hungarian market circumstances REKE B.: A vállalkozások egyensúlyi helyzetének változáskövető vizsgálata ŠINDELÁŘ, J.: Forecasting models in management SIPOS N.: A környezetvédelmi jellegű adók vizsgálata a fenntartható gazdálkodás vonatkozásában VARGA T.: Kényszerű hagyomány : értékvesztés a mezőgazdasági termékek piacán ZÉMAN Z. TÓTH M. BÁRCZI J.: Az ellenőrzési tevékenység kialakítási folyamatának modellezése különös tekintettel a gazdálkodási tevékenységeket érintő K+F és innovációk elszámolására Land utilization and farm structure Földhasználat, gazdaságstruktúra FEHÉR, I. MADARÁSZ I.: Hungarian land ownership patterns and possible future solutions according to the stakeholders' view FEKETE-FARKAS, M. SINGH, M. K. ROUNSEVELL, M. AUDSLEY, E.: Dynamics of changes in agricultural land use arising from climate, policy and socio-economic pressures in Europe LAZÍKOVÁ, J. BANDLEROVA, A. SCHWARCZ, P.: Agricultural cooperatives and their development after the transformation ORLOVITS, ZS.: The influence of the legal background on the transaction costs on the land market in Hungary SADOWSKI, A.: Polish land market before and after transition SZŰCS, I. FARKAS-FEKETE M. VINOGRADOV, S. A.: A new methodology for the estimation of land value

8 Innovation, education Innováció, tudásmenedzsment BAHATTIN, C. PARSEKER, Z. AKPINAR BAYIZIT, A. TURHAN, S.: Using e- commerce as an information technique in agri-food industry DEÁKY Z. MOLNÁR M.: A gödöllői falukutató hagyományok: múlt és jelen ENDER, J. MIKÁCZÓ, A.: The benefits of a farm food safety system FARKAS, T. KOLTA, D: The European identity and citizenship of the university students in Gödöllő FLORKOWSKI, W. J.: Opportunities for innovation through interdisciplinary research HUSTI I.: A hazai agrárinnováció lehetőségei és feladatai KEREKES K.: A Kolozs megyei Vidéki Magyar fiatalok pályaválasztása SINGH, R. MISHRA, J. K. SINGH, M. K.: The entrepreneurship model of business education: building knowledge economy RITTER K.: Agrár-munkanélküliség és a területi egyenlőtlenségek Magyarországon SZALAY ZS. G.: A menedzsment információs rendszerek költség-haszon elemzése SZÉKELY CS.: A mezőgazdasági vállalati gazdaságtan fél évszázados fejlődése SZŰCS I. JÁRÁSI É. ZS. KÉSMÁRKI-GALLY SZ.: A kutatási eredmények sorsa és haszna Authors index / Névjegyzék

9 The influence of the legal background on the transaction costs on the land market in Hungary 525 THE INFLUENCE OF THE LEGAL BACKGROUND ON THE TRANSACTION COSTS ON THE LAND MARKET IN HUNGARY ORLOVITS, ZSOLT Abstract This essay outlines an alternative law and economics interpretation of the concept of the land market. According to neo-institutional researchers, institutions provide the framework and the rules in a society, including legal regulations. This study is based on the legal background in Hungary, and it analyses the current agricultural legal norms of land property. The method used for this research was observing the legal norms in practice and adopting the methods of the economic analysis of law, including game (negotiation) theory and regulatory impact analysis. Describing the different legal institutions, such as easement, lease, agricultural subsidies, that has pecuniary value, the present article describes the transaction costs of selling and purchasing arable land, and the outcome of the decisions and options of the transaction participants. Keywords: land low, property, game theories, decision models Introduction According to North (1990), institutions provide the rules of the game for a society, laying down commonly accepted and recurring rules, principles of behaviour, and norms in economic and social life. Voigt (2002) states that many rules are external, i.e., prescribed behaviour patterns codified in law, assigning prerogatives, rights and obligations for participants of economic transactions, and providing a coherent framework for all based on the obligation to abide by the laws. External legal provisions and rights directly related to arable land as an asset of production, such as easement, lease and agricultural subsidies, that has pecuniary value, have a significant direct impact on land purchase and on the land market as a whole as well. The principal market effect of these legal provisions appears in the transaction cost level. The sale and purchase of land entails the following mandatory costs: a) fee for searching the land registry database; b) attorney s fees; c) fees on imposing or exercising certain rights; d) costs and write-off related to different forms of subsidies. Material and methods The theoretical foundations for analysing the legal framework from an economic point of view are provided by a relatively new school of thought, law and economics. As an approach, property rights theory puts inherently static ownership rights under dynamic scrutiny, emphasising the patterns and rules in the distribution of means of production. The starting point of the model is the fact that ownership entails several rights and prerogatives; therefore, when the asset is sold, the new owner purchases these rights, prerogatives and obligations as well. [Cooter Ulen, 2004; Schafer Ott, 2005]

10 526 Bull. of the Szent István Univ., Gödöllő, The transfer of rights and obligations can be interpreted with the help of the rules of bargaining theory; the framework is provided by three principles: the Smith, the Coase and the Posner principles, the theory of transaction costs, and game theory. In the latter framework, the individual participants, their decision alternatives and underlying motivations are modelled as an extensive form game and depicted in the form of a tree, and the benefits of the possible outcomes are summarized in a payoff matrix. [Kreps, 1990] In order to set up a model of specific institutions, it is essential to be familiar with the relevant legal framework and the specific court decisions as well. Results Transaction costs generated by the legal framework Based on the Hungarian law regulations and the ongoing habits after selling and purchasing a property, a) The seller carries Costs related to the delivery of the property (for example in case of the land such cost as publicity of the right of the pre-emption); Costs related to reach the situation fit to the property records (for example the free of the estate from encumbrances); Costs related to the possible income tax return. b) The purchaser carries Costs related to the contracts (for example fee of attorney); Costs of purchasing and recording the new owner of the property in the authority; furthermore Fee of property assignment. The present research does not consider the price itself and other factors unrelated to the legal background having an impact on the price. Easement of access Adjoining parcels are often divided up in a way that newly formed plots are not accessible directly from a public road. In such cases, the owner of the adjacent plot has to agree to the grantee of the easement accessing their plot through the grantor s land, to an extent necessary for the regular use of the grantee s plot. The servient tenement bears the burden of the easement; the plot to which the benefit of easement is attached is called the dominant tenement. When purchasing a plot, the steps to be taken are different in the case of a dominant tenement and a servient tenement. [Petrik, 2004] The aim of easement of access is to enhance the utilisability of the dominant tenement, which is not accessible by public road. When purchasing such a parcel, it is essential to arrange for the rights of easement of access. This right emerges by the power of legal arrangements, which can take several different forms depending on the extent of the need to exercise the right of easement of access: the grantor and the grantee may agree verbally; ten years of continuous use without the owner of the adjacent plot not raising objections; or a written contract. If the former owner of the dominant tenement and the owner of the servient tenement had only agreed verbally or the right of easement has been acquired by ten years of continuous use, the new owner of the dominant tenement needs to agree on a new contract about the easement of access. However, if the former owner of the dominant tenement had arranged for

11 The influence of the legal background on the transaction costs on the land market in Hungary 527 an agreement in a contract and the right of easement of access has been recorded in the land registry, the contract continues to bind the new owners (easement appurtenant), and new costs only emerge if the contract is to be modified. The existing agreements on the easement of access in any specific case can always be consulted in the land registry office. In the case that the newly purchased plot happens to be a dominant tenement, the following decision matrix can be drawn up: A D B C E F Figure 1. Decision matrix of easement In (A) case, the new owner does not want to change the previous practice because they intend to work the land in the same way and manner as the previous owner. In this case, the easement of access is acquired without legal transaction fees, or a new verbal agreement is reached with the owner of the servient tenement, with minimal fees (B). The second alternative is that the former unwritten agreement with the previous owner is registered at the land registry office in unchanged form (C). The other possibility (D) is that the new owner would like to change the status quo: they intend to exercise their easement of access rights in a different form or at a different place. There are two possibilities: the previously unwritten agreement is modified (E), or the previously unwritten agreement is modified and registered at the land registry office (F). Easement on a real property, if granted pursuant to a legal regulation or by virtue of a court decision or official resolution, shall be registered in the property register; in the absence thereof, easement shall be enforceable only against a mala fide acquirer of the property or an acquirer who has not given any consideration for the property. The transaction costs matrix of the arrangement of easement of access is the following: NO CHANGE CHANGE REGISTERED a) registering the status quo b) attorney s fees c) fee of registration a) drawing up a new agreement and registering it b) attorney s fees c) fee of registration UNREGISTERED a) new verbal agreement Figure 2. Transaction costs matrix of easement The most probable outcome is the intersection of no change and unregistered, for the following reasons:

12 528 Bull. of the Szent István Univ., Gödöllő, Easement of access can only be registered at the land registry office by an attorney; the mutual agreement on the details of the right of access is a necessary but not sufficient condition. - Based on the relevant laws, the easement of access is an automatic right; the agreement itself between the two parties merely regulates the method and place of exercising the right. (With the exception of cases when the owner of the servient tenement argues the supposition that the dominant tenement cannot be accessed any other way.) - The owner of the servient tenement usually avoids registering this status in the land registry, as in the case of a subsequent sale, this provision might decrease the market value of the plot. When the servient status is registered, the owner of the dominant tenement cannot be requested to pay compensation for the decrease in land value, as this entitlement only applies to the case when easement of access is first granted; however, legal practice shows that automatically emerging easement of access is treated as a pre-existing condition. - In case the parties cannot agree on modifying the terms and conditions of the easement of access, they may turn to a court of law, and the resulting right is accepted as a fact even without registration at the land registry office. - In order to facilitate easement of access, the owner of the servient tenement is not motivated to establish a proper driveway, as according to the present conditions of land subsidies, he loses the right to land area based subsidies for that area. However, the losses in crop due to the transit of agricultural heavy machinery could only be recovered in a court of law. Leasehold property When purchasing farmland, it is possible that the previous owner sells the land with a longterm lease registered to a third party. According to the current legislation, the lease agreement does not expire automatically if the land ownership changes. The reason for this arrangement is that land lease contracts must contain an expiry date, and before that date, the lease can only be terminated by a legal procedure. Change of ownership does not automatically qualify as the right to terminate the contract. [Petrik, 2004] The regulations regarding lease are different from half-lease or partial lease; the latter may take the form of a contract without an expiry date, in which case a notice of six months to the tenant is sufficient to terminate the contract. The land deed does not contain registration of leasehold property rights, therefore, consulting a separate land use registry is necessary to check the status of the land to be purchased. Of course, this step adds to the legal fees. If the land to be purchased is currently not worked by its owner, the following decision matrix can be drawn up:

13 The influence of the legal background on the transaction costs on the land market in Hungary 529 A D B C E F Figure 3. Decision matrix of leasehold property In case (A), tenancy is registered on the land. The aim of the new owner might be farming (B) or leasing (C). In case (D), the land is farmed in half-lease or partial lease. The aim of the new owner might be farming (E) or leasing (F). The transaction costs matrix is as follows: Own farming OWN FARMING LEASING TENANCY a) acquiring land use registry b) cancelled profits during the period of the agreement, decreased by rent paid c) occasionally attorney s fees a) acquiring land use registry b) cancelled profits according to the stipulations of the agreement at present HALF LEASE, PARTIAL LEASE a) acquiring land use registry b) cancelled profits during the period of the notice (6 months), decreased by rent paid c) occasionally attorney s fees a) acquiring land use registry b) cancelled profits according to the stipulations of the agreement at present Figure 4. Transaction costs matrix of leasehold property Of the above cases, the only real problem is presented if the purchased land is bought for farming by the new owner, but has tenancy registered to it. In this case, an agreement must be reached between the owner and the tenant. If the lessor would like to continue leasing, the former rental fees do not lose effect until the termination of the previous fixed date contract and can only be modified with mutual agreement. It is to be noted that the tenancy right is registered on a different document and this increases transaction costs without a real purpose. If the land use status could be registered at the land registry office, on the land title deeds, this could provide an opportunity to treat land use status as a property right. Agricultural subsidies that have pecuniary value After the Single Payment Scheme (SPS), expected to be introduced in 2009, will be used the right of the subsidies after land belongs to the land user. So in case of the leasehold the right of the support belongs to the leaseholder not to the proprietor because he names as farmer.

14 530 Bull. of the Szent István Univ., Gödöllő, After the leasehold contract finished the right of the subsidies after land not automatically gets back to the proprietor only when the participants claimed it in the contract. Consequently the leaseholders can have some fear when they receive the land that the value of it will diminish because of the lack of the subsidiary rights. This can be avoided by the added contract condition which directs the subsidy rights in the future, in particular case get back to the leaseholder without payment. If selling a land without this kind of agreement the value of rights of subsidies must be calculated as a missing income. Conclusions 1. The rules and laws regulating ownership must be drawn up in such a manner that the difficulties of transaction eventually become balanced with the fees incurred during the maintenance of the land registry system. If the authorities register property rights related to certain plots of land in different registries and databases, this practice results in unreasonable costs of transaction. 2. In the case of small-scale transactions, the registration fees often exceed the expected profit, especially in cases when rights are imposed by law. The parties only have interest in officially registering an agreement if the lack of agreement would mean no legal protection in practice. 3. Regarding tenancy, the freedom of contract is curtailed by the current over-protection of tenants. The freedom of exercising ownership rights is severely hindered by the rules and regulations concerning the duration and termination of lease agreements. 4. If a right directly related to arable land as an asset of production it is elementary to solve the authority of the property. According to the related law the solution can be ineffective in a certain case by the lack of it. References COOTER, R. ULEN, T. (2004): Law and Economics. 4 th Edition, Pearson Educatoin Inc., Addison-Wesley pp. KREPS, D. M. (1990): Game Theory and Economic Modelling. Oxford University Press 218 p. NORTH, D. C. (1990): Institutions, Institutional Change and Economic Performance. Cambridge University Press 152 p. PETRIK, F. et. al. (2004): A Polgári Törvénykönyv magyarázata I. KJK-Kerszöv Kiadó, Budapest pp. SCHAFER, H.-B. OTT, C. (2005): Lehrbuch der ökonomischen Analyse des Zivilrechts. Springer Verlag, Berlin pp. VOIGT, S. (2002): Institutionenökonomik. Wilhelm Fink Verlag, München 326 p. Author Orlovits, Zsolt, PhD Student Szent István University, Faculty of Economic and Social Sciences Institute of Economic Law and Administration Orlovits.Zsolt@gtk.szie.hu