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Estimation of technical efficiency of Czech farms operating in less favoured areas

Author

Listed:
  • Tamara Rudinskaya
  • Tomas Hlavsa

    (Institute of Agricultural Economics and Information, Prague, Czech Republic)

  • Martin Hruska

    (Institute of Agricultural Economics and Information, Prague, Czech Republic)

Abstract

This paper deals with the technical efficiency analysis of farms in the Czech Republic. The empirical analysis provides an evaluation of technical efficiency with regard to the farm size, farm specialisation, and farm location. Accounting data of Czech farms from the Albertina database for the years 2011-2015 were used for the analysis. The data were classified by the utilised agricultural area and location of the farm expressed as a less favoured area type from the Land Parcel Identification System (LPIS) database. Research was conducted using the translogarithmic production function and Stochastic Frontier Analysis. The results indicate positive impact of farm size, expressed by utilised agricultural area, on technical efficiency. The analysis of the impact of farm specialisation on technical efficiency verified that farms specialised on animal production are more efficient. The lowest technical efficiency is shown by farms situated in mountainous Less Favoured Areas (LFAs), the highest technical efficiency by farms located in non-LFA regions.

Suggested Citation

  • Tamara Rudinskaya & Tomas Hlavsa & Martin Hruska, 2019. "Estimation of technical efficiency of Czech farms operating in less favoured areas," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 65(10), pages 445-453.
    • Handle: RePEc:caa:jnlage:v:65:y:2019:i:10:id:52-2019-agricecon
    DOI: 10.17221/52/2019-AGRICECON
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    References listed on IDEAS

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    1. Jana LOSOSOVÁ & Radek ZDENĚK, 2013. "Development of farms according to the LFA classification," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 59(12), pages 551-562.
    2. Laure Latruffe & Boris E. Bravo-Ureta & Alain Carpentier & Yann Desjeux & Víctor H. Moreira, 2017. "Subsidies and Technical Efficiency in Agriculture: Evidence from European Dairy Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(3), pages 783-799.
    3. Sophia Davidova & Laure Latruffe, 2007. "Relationships between Technical Efficiency and Financial Management for Czech Republic Farms," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(2), pages 269-288, June.
    4. Lajos Baráth & Imre Fertő & Štefan Bojnec, 2018. "Are farms in less favored areas less efficient?," Agricultural Economics, International Association of Agricultural Economists, vol. 49(1), pages 3-12, January.
    5. A. Juřica & T. Medonos & L. Jelínek, 2004. "Structural changes and efficiency in Czech agriculture in the pre-accession period," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 50(3), pages 130-138.
    6. Laure Latruffe & Boris E. Bravo-Ureta & Alain Carpentier & Yann Desjeux & Víctor H. Moreira, 2017. "Subsidies and Technical Efficiency in Agriculture: Evidence from European Dairy Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(3), pages 783-799.
    7. Lukáš ČECHURA, 2010. "Estimation of technical efficiency in Czech agriculture with respect to firm heterogeneity," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 56(4), pages 183-191.
    8. Willam Greene, 2005. "Fixed and Random Effects in Stochastic Frontier Models," Journal of Productivity Analysis, Springer, vol. 23(1), pages 7-32, January.
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    Cited by:

    1. Lukáš Čechura & Zdeňka Žáková Kroupová & Michaela Lekešová, 2022. "Productivity and efficiency in Czech agriculture: Does farm size matter?," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 68(1), pages 1-10.
    2. Jana Lososová & Radek Zdeněk, 2023. "Simulation of the impacts of the proposed direct payment scheme - The case of the Czech Republic," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(1), pages 13-24.

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