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Subsidies, production structure and technical change – A cross-country comparison

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  • Key, Nigel D.
  • Latruffe, Laure
  • Sauer, Johannes

Abstract

The effect of subsidies on production and technical change of crop farms in France and the United Kingdom (UK) during 1980-2006 is investigated. Subsidies were not neutral on production decisions, in terms of production intensity and type. Crop farms in both countries have experienced technical progress during the period studied, higher in France. Technical progress has favoured labour and chemicals in both countries, land in France, capital in the UK, while it has disfavoured land in the UK and capital in France. Technical change has been slowed down by crop area subsidies but increased by agri-environmental subsidies in both countries.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 114th Seminar, April 15-16, 2010, Berlin, Germany with number 61109.

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Date of creation: Apr 2010
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Handle: RePEc:ags:eaa114:61109

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Keywords: technical change; subsidies; input bias; crop farms; Agricultural and Food Policy; Farm Management; Land Economics/Use;

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  1. Morrison Paul, Catherine J. & Sauer, Johannes, 2010. "Distinguishing Different Industry Technologies and Localized Technical Change," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61146, Agricultural and Applied Economics Association.
  2. Paul, Catherine J. Morrison & Nehring, Richard, 2005. "Product diversification, production systems, and economic performance in U.S. agricultural production," Journal of Econometrics, Elsevier, vol. 126(2), pages 525-548, June.
  3. Brummer, B. & Glauben, T. & Lu, W., 2006. "Policy reform and productivity change in Chinese agriculture: A distance function approach," Journal of Development Economics, Elsevier, vol. 81(1), pages 61-79, October.
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