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Productivity Change Analysis of Polish Dairy Farms After Poland’s Accession to the EU – An Output Growth Decomposition Approach

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  • Makieła, Kamil
  • Marzec, Jerzy
  • Pisulewski, Andrzej

Abstract

The aim of this study is to assess changes in productivity of Polish dairy farms after Poland’s accession to the EU. In order to do so a new decomposition of output growth is proposed in a stochastic frontier framework. We show how changes in economies of scale can be isolated, which leads to redefined components of output growth and a better measure of productivity growth. The productivity component is now disaggregated to its three generic sources: total scale change, real technical change and efficiency change. The analysis of 1,191 Polish dairy farms between 2004-2011 has revealed that production growth (3.91%) is mostly due to inputs accumulation (3.4%) rather than productivity growth (0.51%.) Further decomposition indicates that productivity component is driven by real technical growth (1%) and changes in scale elasticity, which have had a negative effect on productivity (-0.81%). Technical efficiency growth (0.36%) played a rather minor role.

Suggested Citation

  • Makieła, Kamil & Marzec, Jerzy & Pisulewski, Andrzej, 2016. "Productivity Change Analysis of Polish Dairy Farms After Poland’s Accession to the EU – An Output Growth Decomposition Approach," MPRA Paper 80295, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:80295
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    References listed on IDEAS

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    Cited by:

    1. Kamil Makieła & Błażej Mazur, 2020. "Bayesian Model Averaging and Prior Sensitivity in Stochastic Frontier Analysis," Econometrics, MDPI, vol. 8(2), pages 1-22, April.
    2. Jerzy Marzec & Andrzej Pisulewski & Artur Prędki, 2019. "Efektywność techniczna i produktywność polskich gospodarstw rolnych specjalizujących się w uprawach polowych," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 2, pages 95-125.

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    More about this item

    Keywords

    productivity analysis; Polish dairy farms; output growth decomposition; stochastic frontier analysis; FADN;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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