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Systemic issues and efficiency reserves in EU agriculture: a slack-based DEA approach

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  • Kyshakevych, Bohdan
  • Melnyk, Olga
  • Maksyshko, Natalia
  • Maturin, Yuriy
  • Kotyk, Yaroslaw

Abstract

Purpose. The purpose of the study is to develop an integrated approach for evaluating the super-efficiency of the agricultural sector in EU countries, considering resource, ecological, and economic dimensions, while identifying systemic challenges and opportunities for efficiency enhancement through slack-based Data Envelopment Analysis (DEA). Methodology / approach. The study uses super efficiency slack-based Data Envelopment Analysis models to evaluate the efficiency of the agricultural sector in EU countries. It incorporates three input-oriented DEA models focusing on resource-based, ecological, and economic dimensions to provide a comprehensive assessment. An aggregated assessment of the efficiency of the agricultural sector in EU countries was proposed based on the geometric mean of the evaluations from the constructed DEA models. A method for identifying systemic issues and opportunities for efficiency improvements in the agricultural sector of 27 EU countries using slack values was proposed. Results. The most efficient countries in the EU agricultural sector according to proposed approach on the base of aggregation of three offered DEA model are the Netherlands, Belgium, Cyprus, Malta, Denmark, France and Ireland, demonstrating high levels of super-efficiency. The main challenges for less efficient countries include excessive land use, low export levels, and insufficient added value of agricultural products. Slack analysis revealed that the largest deviations are observed in land resource utilisation and export volumes. Originality / scientific novelty. The article proposes an approach for evaluating the super-efficiency of the agricultural sector in EU countries by aggregating the assessments of three proposed DEA models. A method for identifying systemic issues in the efficient use of resources in the agricultural sector based on the analysis of slacks in DEA models has been proposed. Practical value / implications. The article provides practical insights for policymakers and stakeholders to optimise resource use and improve the efficiency of the agricultural sector in EU. The results can guide the development of tailored strategies to address inefficiencies, particularly in land use and export performance. The proposed approach provides a methodological framework that can be applied to other regions, promoting sustainable agricultural practices globally and enabling the development of an aggregated efficiency ranking for the agricultural sector.

Suggested Citation

  • Kyshakevych, Bohdan & Melnyk, Olga & Maksyshko, Natalia & Maturin, Yuriy & Kotyk, Yaroslaw, . "Systemic issues and efficiency reserves in EU agriculture: a slack-based DEA approach," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 11(1).
    • Handle: RePEc:ags:areint:364294
    DOI: 10.22004/ag.econ.364294
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    References listed on IDEAS

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