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Nonparametric estimates of productivity and efficiency change in Australian Broadacre Agriculture

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  • Khan, Farid
  • Salim, Ruhul
  • Bloch, Harry

Abstract

This paper computes and decomposes F€are-Primont indexes of total factor productivity of Australian broadacre agriculture by estimating distance functions. Using state-level data from 1990 to 2011, the empirical results show that TFP grew at an average rate of 1.36 per cent per annum in the broadacre agriculture over the period 1990–2011. There are variations of total factor productivity (TFP) growth across states and fluctuations over time within each state and territory. However, overall, there is a clear movement towards slower TFP growth across the sample period. Further decomposition of TFP growth shows that it is declining growth in technical possibilities (technological progress) that is the main driver of the declining trend in productivity growth in broadacre agriculture in Australia.

Suggested Citation

  • Khan, Farid & Salim, Ruhul & Bloch, Harry, 2015. "Nonparametric estimates of productivity and efficiency change in Australian Broadacre Agriculture," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(3), July.
    • Handle: RePEc:ags:aareaj:283208
    DOI: 10.22004/ag.econ.283208
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    File URL: https://ageconsearch.umn.edu/record/283208/files/ajar12076.pdf
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    Cited by:

    1. Dakpo, K Herve & Jeanneaux, Philippe & Latruffe, Laure & Mosnier, Claire & Veysset, Patrick, 2018. "Three decades of productivity change in French beef production: a F€are-Primont index decomposition," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 62(3), July.
    2. Dakpo, K Hervé & Desjeux, Yann & Jeanneaux, Philippe & Latruffe , Laure, 2017. "Productivity, technical efficiency and technological change in French agriculture during 2002-2014: A Färe-Primont index decomposition," Working Papers 263010, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    3. Ahmad Hosseinzadeh & Russell Smyth & Abbas Valadkhani & Amir Moradi, 2018. "What determines the efficiency of Australian mining companies?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 62(1), pages 121-138, January.
    4. Dakpo, K Hervé & Desjeux, Yann & Jeanneaux, Philippe & Latruffe, Laure, 2016. "Productivity, efficiency and technological change in French agriculture during 2002-2014: A Färe-Primont index decomposition," 149th Seminar, October 27-28, 2016, Rennes, France 244793, European Association of Agricultural Economists.
    5. Łukasz Kryszak & Thomas Herzfeld, 2021. "One or many European models of agriculture? How heterogeneity influences income creation among farms in the European Union," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(11), pages 445-456.
    6. K Hervé Dakpo & Philippe Jeanneaux & Laure Latruffe & Claire Mosnier & Patrick Veysset, 2018. "Three decades of productivity change in French beef production: a Färe‐Primont index decomposition," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 62(3), pages 352-372, July.

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