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Total factor productivity change of Swiss dairy farms in the mountain region in the period 1999 to 2008

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  • Pierrick Jan

    ()
    (Agroscope Reckenholz-Tänikon Research Station ART, Farm Economics Research Group, Tänikon 1, 8356 Ettenhausen, Switzerland)

  • Markus Lips
  • Michel Dumondel
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    Abstract

    In the present contribution we assess the total factor productivity (TFP) change in the period 1999- 2008 of Swiss dairy farms located in the mountain region using the Malmquist productivity index. We furthermore analyze the robustness of the results of this assessment to the effect of the type of panel used and to different modeling options regarding the inclusion of the ecological and ethological direct payments in the output set. The yearly TFP growth is shown to vary between +1.3% and +3.0% depending on the panel type and modelling option chosen. The results of our work suggest that the TFP growth rate of Swiss dairy farms in the mountain region is not lower than the levels observed in the dairy sector of other European countries. More generally, our investigation shows how sensitive the results of TFP change assessments are to data-related methodological choices and thus highlights the necessity of considering this issue when performing such assessments.

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    Bibliographic Info

    Article provided by INRA Department of Economics in its journal Review of Agricultural and Environmental Studies.

    Volume (Year): 93 (2012)
    Issue (Month): 3 ()
    Pages: 273-298

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    Handle: RePEc:rae:jourae:v:93:y:2012:i:3:p:273-298

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    Related research

    Keywords: Swiss dairy farming; mountain agriculture; Total Factor Productivity growth; Malmquist index; sensitivity analysis; agri-environmental direct payments;

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    1. Oral, Muhittin & Cinar, Unver & Chabchoub, Habib, 1999. "Linking industrial competitiveness and productivity at the firm level," European Journal of Operational Research, Elsevier, vol. 118(2), pages 271-277, October.
    2. Fare, Rolf & Shawna Grosskopf & Mary Norris & Zhongyang Zhang, 1994. "Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries," American Economic Review, American Economic Association, vol. 84(1), pages 66-83, March.
    3. Carroll, J. & Greene, S. & O'Donoghue, Cathal & Newman, Carol F. & Thorne, Fiona S., 2009. "Productivity and the Determinants of Efficiency in Irish Agriculture (1996-2006)," 83rd Annual Conference, March 30-April 1, 2009, Dublin, Ireland 50941, Agricultural Economics Society.
    4. Carol Newman & Alan Matthews, 2006. "The productivity performance of Irish dairy farms 1984–2000: a multiple output distance function approach," Journal of Productivity Analysis, Springer, vol. 26(2), pages 191-205, October.
    5. Bjurek, Hans, 1996. " The Malmquist Total Factor Productivity Index," Scandinavian Journal of Economics, Wiley Blackwell, vol. 98(2), pages 303-13, June.
    6. Christos Pantzios & Giannis Karagiannis & Vangelis Tzouvelekas, 2011. "Parametric decomposition of the input-oriented Malmquist productivity index: with an application to Greek aquaculture," Journal of Productivity Analysis, Springer, vol. 36(1), pages 21-31, August.
    7. Tim J. Coelli & D.S. Prasada Rao, 2003. "Total Factor Productivity Growth in Agriculture: A Malmquist Index Analysis of 93 Countries,1980-2000," CEPA Working Papers Series WP022003, School of Economics, University of Queensland, Australia.
    8. Jean-Philippe Boussemart & Walter Briec & Kristiaan Kerstens & Jean-Christophe Poutineau, 2003. "Luenberger and Malmquist Productivity Indices: Theoretical Comparisons and Empirical Illustration," Bulletin of Economic Research, Wiley Blackwell, vol. 55(4), pages 391-405, October.
    9. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    10. Kirner, Leopold & Gazzarin, Christian, 2007. "Künftige Wettbewerbsfähigkeit der Milchproduktion im Berggebiet Österreichs und der Schweiz," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 56(4).
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    Cited by:
    1. Kantelhardt, Jochen & Kapfer, Martin & Franzel, Martin & Kirchweger, Stefan, 2013. "Development of Efficiency in Alpine Farming - A Combination of the Malmquist Index Approach and Matching–," 53rd Annual Conference, Berlin, Germany, September 25-27, 2013 156136, German Association of Agricultural Economists (GEWISOLA).

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