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Farm performance and support in Central and Western Europe: A comparison of Hungary and France

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Author Info
Laure Latruffe
Jozsef Fogarasi

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Abstract

The paper investigates the difference in technical efficiency and in productivity change, and the technology gaps, between French and Hungarian farms in the dairy and cereal, oilseeds and proteinseeds (COP) sectors during the period 2001-2004. The analyses are performed with national FADN data and the Data Envelopment Analysis (DEA) approach under each country’s respective frontier and under a metafrontier. Results revealed that in both the dairy and the COP sectors, Hungarian farms’ technology was the more productive, despite a technological deterioration. This suggests technological advantages for large-scale (Hungarian) over small-scale (French) farming in these two sectors. These findings may also be explained by the higher policy support in France. Subsidies received by farms have indeed a stronger negative impact on technical efficiency for French farms than for Hungarian farms, and a negative impact on the ability to lead the technology only for French farms.

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Paper provided by INRA UMR SMART in its series Working Papers SMART - LERECO with number 200907.

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Date of creation: 2009
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Handle: RePEc:rae:wpaper:200907

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Related research
Keywords: technology gap; technical efficiency; Malmquist indices; subsidies; farms;

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Find related papers by JEL classification:
P51 - Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor 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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References listed on IDEAS
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  1. Balcombe, Kelvin & Davidova, Sophia & Latruffe, Laure, 2005. "Productivity Change in Polish Agriculture: An Application of a Bootstrap Procedure to Malmquist Indices," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24572, European Association of Agricultural Economists. [Downloadable!]
  2. 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)
  3. Laure Latruffe, 2005. "The Impact of Credit Market Imperfections on Farm Investment in Poland," Post-Communist Economies, Taylor and Francis Journals, vol. 17(3), pages 349-362, September. [Downloadable!] (restricted)
  4. Christopher O’Donnell & D. Rao & George Battese, 2008. "Metafrontier frameworks for the study of firm-level efficiencies and technology ratios," Empirical Economics, Springer, vol. 34(2), pages 231-255, March. [Downloadable!] (restricted)
  5. Petrick, Martin, 2004. "Farm investment, credit rationing, and governmentally promoted credit access in Poland: a cross-sectional analysis," Food Policy, Elsevier, vol. 29(3), pages 275-294, June. [Downloadable!] (restricted)
  6. Macours, Karen & Swinnen, Johan F. M., 2000. "Causes of Output Decline in Economic Transition: The Case of Central and Eastern European Agriculture," Journal of Comparative Economics, Elsevier, vol. 28(1), pages 172-206, March. [Downloadable!] (restricted)
  7. 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)
  8. Stefan Bojnec & Laure Latruffe, 2009. "Determinants of technical efficiency of Slovenian farms," Post-Communist Economies, Taylor and Francis Journals, vol. 21(1), pages 117-124. [Downloadable!] (restricted)
  9. Erik Mathijs, Liesbet Vranken, 2001. "Human Capital, Gender and Organisation in Transition Agriculture: Measuring and Explaining the Technical Efficiency of Bulgarian and Hungarian Farms," Post-Communist Economies, Taylor and Francis Journals, vol. 13(2), pages 171-187, June. [Downloadable!] (restricted)
  10. Latruffe, L. & Guyomard, H. & Le Mouel, C., 2008. "Impact of CAP Direct Payments on French Farms’ Managerial Efficiency," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44144, European Association of Agricultural Economists. [Downloadable!]
  11. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November. [Downloadable!] (restricted)
  12. Brummer, Bernhard & Glauben, Thomas & Thijssen, Geert, 2002. " Decomposition of Productivity Growth Using Distance Functions: The Case of Dairy Farms in Three European Countries," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 84(3), pages 628-44, August. [Downloadable!] (restricted)
  13. Zhu, Xueqin & Demeter, Robert Milan & Lansink, Alfons Oude, 2008. "Competitiveness of dairy farms in three countries: the role of CAP subsidies," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44143, European Association of Agricultural Economists. [Downloadable!]
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