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Evading Farm Support Reduction via Efficient Input Use: The Case of Greek Cotton Growers

  • Pantzios, Christos J.
  • Rozakis, Stelios
  • Tzouvelekas, Vangelis

The present paper examines the importance that efficient resource use may have for cotton growers under the current EU policy regime. To that end, input-oriented technical and scale efficiency score for a sample of 172 cotton-growing farms are empirically quantified. The results suggest that cotton farms in the sample are not efficient mainly due to the nature of the policy regime governing the sector throughout EU. By becoming efficient, the co-responsibility levy will be reduced by 18.3% and farms may increase their profits by 50.1% on the average.

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File URL: http://purl.umn.edu/43787
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Article provided by Southern Agricultural Economics Association in its journal Journal of Agricultural and Applied Economics.

Volume (Year): 38 (2006)
Issue (Month): 03 (December)
Pages:

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Handle: RePEc:ags:joaaec:43787
Contact details of provider: Web page: http://www.saea.org/jaae/jaae.htm
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  8. Llewelyn, Richard V. & Williams, Jeffery R., 1996. "Nonparametric analysis of technical, pure technical, and scale efficiencies for food crop production in East Java, Indonesia," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 15(2), November.
  9. Giannis Karagiannis & Christos J. Pantzios, 2002. "To Comply or not to Comply with Policy Regulations - the Case of Greek Cotton Growers: a Note," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(2), pages 345-351.
  10. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-44, June.
  11. 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.
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  14. Stijn Reinhard & C. A. Knox Lovell & Geert Thijssen, 2002. "Analysis of Environmental Efficiency Variation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 1054-1065.
  15. Abdul Wadud & Ben White, 2000. "Farm household efficiency in Bangladesh: a comparison of stochastic frontier and DEA methods," Applied Economics, Taylor & Francis Journals, vol. 32(13), pages 1665-1673.
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  20. Giannis Karagiannis & Christos Pantzios, . "To comply or Not to Comply with Policy Regulations: The Case of Greek Cotton Growers," Working Papers 9817, University of Crete, Department of Economics.
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  22. Atkinson, Scott E & Cornwell, Christopher, 1994. "Estimation of Output and Input Technical Efficiency Using a Flexible Form and Panel Data," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 35(1), pages 245-55, February.
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