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Innovation and total factor productivity in organic farming

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  • Chrysovalantis Karafillis
  • Evaggelos Papanagiotou

Abstract

This article measures the contribution of innovations to Total Factor Productivity (TFP) of organic olive farmers. By constructing an innovation variable instead of using a time trend, technical change is replaced by technical difference and TFP growth becomes TFP difference. Primary cross-section data on organic olive enterprises from a Greek region is used in the application of the stochastic frontier profit function. Farmers are classified into groups according to their innovative 'profile'. TFP difference among consecutive innovation groups is decomposed into technical difference and adjustment in innovativeness effects. Results indicate that more innovative farmers perform better than less innovative ones regarding TFP scores. The rate of technical difference is always positive to the formation of TFP difference, whereas the adjustment in innovativeness effects varies among the innovation groups. Nevertheless, high-tech capital is to a different extent under-utilized, regardless of the innovation group.

Suggested Citation

  • Chrysovalantis Karafillis & Evaggelos Papanagiotou, 2011. "Innovation and total factor productivity in organic farming," Applied Economics, Taylor & Francis Journals, vol. 43(23), pages 3075-3087.
    • Handle: RePEc:taf:applec:v:43:y:2011:i:23:p:3075-3087
    DOI: 10.1080/00036840903427240
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    References listed on IDEAS

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    1. Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275.
    2. Erwin Diewert & Denis Lawrence, 1999. "Measuring New Zealand’s Productivity," Treasury Working Paper Series 99/05, New Zealand Treasury.
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    Cited by:

    1. Sabrina Auci & Andrea Pronti, 2020. "Innovation in Irrigation Technologies for Sustainable Agriculture: An Endogenous Switching Analysis on Italian Farms’ Land Productivity," SEEDS Working Papers 1220, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Dec 2020.
    2. Lakner, Sebastian & Breustedt, Gunnar, 2015. "Efficiency analysis of organic farming systems- a review of methods, topics, results, and conclusions," 2015 Conference, August 9-14, 2015, Milan, Italy 212025, International Association of Agricultural Economists.
    3. Läpple, Doris & Renwick, Alan & Thorne, Fiona, 2015. "Measuring and understanding the drivers of agricultural innovation: Evidence from Ireland," Food Policy, Elsevier, vol. 51(C), pages 1-8.
    4. Sabrina Auci & Nicolò Barbieri & Manuela Coromaldi & Donatella Vignani, 2021. "Innovation for climate change adaptation and technical efficiency: an empirical analysis in the European agricultural sector," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(2), pages 597-623, July.
    5. Franz Sinabell & Fabian Unterlass & Peter Walder & Jochen Kantelhardt, 2017. "Austria 2025 – Innovation: A Motor of Growth and Employment in the Rural Economy," WIFO Studies, WIFO, number 60604, February.
    6. Peter Walder & Franz Sinabell & Fabian Unterlass & Andreas Niedermayr & Denisa Fulgeanu & Martin Kapfer & Michael Melcher & Jochen Kantelhardt, 2019. "Exploring the Relationship between Farmers’ Innovativeness and Their Values and Aims," Sustainability, MDPI, vol. 11(20), pages 1-15, October.
    7. Franz Sinabell & Fabian Unterlass & Peter Walder & Jochen Kantelhardt, 2017. "Österreich 2025 – Innovation: der Motor für Wachstum und Beschäftigung in der ländlichen Wirtschaft," WIFO Studies, WIFO, number 60801, February.
    8. Auci, Sabrina & Pronti, Andrea, 2023. "Irrigation technology adaptation for a sustainable agriculture: A panel endogenous switching analysis on the Italian farmland productivity," Resource and Energy Economics, Elsevier, vol. 74(C).
    9. Francesco Manta & Domenico Morrone & Pierluigi Toma & Francesco Campobasso, 2023. "Determining paths of innovation: The role of culture on the adoption on organic farming management," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 96-109, January.
    10. Amare, Mulubrhan & Mariara, Jane & Oostendorp, Remco & Pradhan, Menno, 2019. "The impact of smallholder farmers’ participation in avocado export markets on the labor market, farm yields, sales prices, and incomes in Kenya," Land Use Policy, Elsevier, vol. 88(C).

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