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Price Support, Efficiency and Technology Change of Ukrainian dairy farms: Spatial dependence in the components of productivity growth

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  • Nivievskyi, Oleg
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    Abstract

    Even after more than 15 years of transition from plan to market, agriculture in Ukraine still faces many challenges in terms of its structure. In particular, both the recently approved WTO accession, and the ongoing negotiations on a free trade agreement with the EU will require improvements in productivity and competitiveness at the farm level. The evidence in the literature based on either data envelopment (DEA) or stochastic frontier analysis (SFA) in Ukraine points to significant heterogeneity of technical efficiency and TFP scores. However, the drivers underlying these patterns have not been explicitly studied yet. Using farm-level data for 2004-2005, this paper investigates the determinants of productivity growth in Ukrainian dairy farming. The results demonstrate significant spatial dependency in pure efficiency and technological components, meaning essentially ‘imitating’ behavior of the neighboring farms in their efficiency and technological progress. Price supports demonstrate negative impact on efficiency, and, however, much weaker positive impact on the technology progress of relatively small farm.

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    Bibliographic Info

    Paper provided by International Association of Agricultural Economists in its series 2009 Conference, August 16-22, 2009, Beijing, China with number 51403.

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    Date of creation: 2009
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    Handle: RePEc:ags:iaae09:51403

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    Web page: http://www.iaae-agecon.org/
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    Keywords: Ukraine; dairy farming; TFP; spatial dependence; Production Economics; Productivity Analysis;

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    1. Konstantinos Giannakas & Richard Schoney & Vangelis Tzouvelekas, 1999. "Technical Efficiency, Technological Change and Output Growth of Wheat Farms in Saskatchewan," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 47(4), pages 468-469, December.
    2. Sunding, David & Zilberman, David, 2001. "The agricultural innovation process: Research and technology adoption in a changing agricultural sector," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 4, pages 207-261 Elsevier.
    3. Cazals, Catherine & Florens, Jean-Pierre & Simar, Leopold, 2002. "Nonparametric frontier estimation: a robust approach," Journal of Econometrics, Elsevier, vol. 106(1), pages 1-25, January.
    4. Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 255-98, January.
    5. Brian Roe & Elena G. Irwin & Jeff S. Sharp, 2002. "Pigs in Space: Modeling the Spatial Structure of Hog Production in Traditional and Nontraditional Production Regions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(2), pages 259-278.
    6. Chavas, Jean-Paul, 2001. "Structural change in agricultural production: Economics, technology and policy," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 5, pages 263-285 Elsevier.
    7. Léopold Simar, 2003. "Detecting Outliers in Frontier Models: A Simple Approach," Journal of Productivity Analysis, Springer, vol. 20(3), pages 391-424, November.
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