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Agricultural Productivity Growth In The European Union And Transition Countries

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Author Info
Rungsuriyawiboon, Supawat
Lissitsa, Alexej
Abstract

Malmquist total factor productivity (TFP) index has been extensively applied in the literature to measure productivity growth decomposition. This study applies a parametric decomposition of a Generalized Malmquist TFP index to measure and compare the levels and trends in agricultural productivity in European countries, making use of the most-recent data available from the Food and Agriculture Organization (FAO) of United Nations. The aim of this study is to measure TFP developments in agriculture of transition countries after breakdown of socialism and to compare their TFP growth with other European countries. The Generalized Malmquist productivity index can be decomposed into technological change, technical efficiency change and scale efficiency change. These measures will provide insightful information for policymakers in designing proper policies to promote a higher growth rate in agriculture in transition countries. ZUSAMMENFASSUNG PRODUKTIVITÄTSENTWICKLUNG IN DER LANDWIRTSCHAFT IN DER EUROPAÏSCHEN UNION UND IN DEN TRANSFORMATIONSLÄNDERN Malmquist Total Factor Productivity (TFP) Index gehört zu den meist verwendeten Methoden der Produktivitätsanalyse und ihrer Zerlegung. In diesem Paper wird ein parametrisches Verfahren eingesetzt, um die Produktivitätsentwicklungen in der europäischen Agrarwirtschaft zu analysieren. Die statistische Datenbasis basiert auf der Datenbank der Food and Agriculture Organization (FAO) of United Nations. Das Ziel dieses Forschungsvorhabens ist es, die Produktivitätsentwicklungen in den Agrar- und Ernährungssektoren der Transformationsländern Mittel- und Osteuropas sowie der ehemaligen Sowjetunion zu messen und diese mit dem Wachstum in der Europäischen Union zu vergleichen. Methodisch kann Malmquist Index zerlegt werden in technical change, efficiency change and scale efficiency change. Dieser Zerfall des Indexes kann wichtige Informationen für die Politikgestalter und Forscher hinsichtlich der weiteren Entwicklung des Agrarsektors in betroffenen Ländern bringen. Schlüsselwörter: Transformation, Malmquist Index, Agrarsektor, Multifactor Productivity.

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Paper provided by Institute of Agricultural Development in Central and Eastern Europe (IAMO) in its series IAMO Discussion Papers with number 14903.

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Date of creation: 2006
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Handle: RePEc:ags:iamodp:14903

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Related research
Keywords: Transition countries; Malmquist; Multifactor Productivity; agriculture; Productivity Analysis; Q16; Q18; P27;

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  1. Brada, Josef C & King, Arthur E, 1993. "Is Private Farming More Efficient Than Socialized Agriculture?," Economica, London School of Economics and Political Science, vol. 60(237), pages 41-56, February. [Downloadable!] (restricted)
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  3. 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. [Downloadable!]
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  4. Scott Rozelle & Johan F. M. Swinnen, 2004. "Success and Failure of Reform: Insights from the Transition of Agriculture," Journal of Economic Literature, American Economic Association, vol. 42(2), pages 404-456, June. [Downloadable!] (restricted)
  5. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November. [Downloadable!] (restricted)
  6. Fulginiti, Lilyan E. & Perrin, Richard K., 1997. "LDC agriculture: Nonparametric Malmquist productivity indexes," Journal of Development Economics, Elsevier, vol. 53(2), pages 373-390, August. [Downloadable!] (restricted)
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  7. Fare, Rolf, et al, 1997. " Biased Technical Change and the Malmquist Productivity Index," Scandinavian Journal of Economics, Blackwell Publishing, vol. 99(1), pages 119-27, March. [Downloadable!] (restricted)
  8. O'Donnell, Christopher J. & Coelli, Timothy J., 2005. "A Bayesian approach to imposing curvature on distance functions," Journal of Econometrics, Elsevier, vol. 126(2), pages 493-523, June. [Downloadable!] (restricted)
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  9. Trzeciak-Duval, Alexandra, 1999. "A Decade of Transition in Central and Eastern European Agriculture," European Review of Agricultural Economics, Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 26(3), pages 283-304, August.
  10. Gorton, Matthew & Davidova, Sophia, 2004. "Farm productivity and efficiency in the CEE applicant countries: a synthesis of results," Agricultural Economics, Blackwell, vol. 30(1), pages 1-16, January. [Downloadable!] (restricted)
  11. Diewert, W. E., 1976. "Exact and superlative index numbers," Journal of Econometrics, Elsevier, vol. 4(2), pages 115-145, May. [Downloadable!] (restricted)
  12. Ray, Subhash C & Desli, Evangelia, 1997. "Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries: Comment," American Economic Review, American Economic Association, vol. 87(5), pages 1033-39, December. [Downloadable!] (restricted)
  13. Fare, Rolf & Grosskopf, Shawna & Norris, Mary, 1997. "Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries: Reply," American Economic Review, American Economic Association, vol. 87(5), pages 1040-43, December. [Downloadable!] (restricted)
  14. Hayami, Yujiro & Ruttan, Vernon W, 1970. "Agricultural Productivity Differences Among Countries," American Economic Review, American Economic Association, vol. 60(5), pages 895-911, December. [Downloadable!] (restricted)
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