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Agricultural competitiveness: The case of the United States and major EU countries

Author

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  • Munisamy Gopinath
  • Carlos Arnade
  • Mathew Shane
  • Terry Roe

Abstract

Growth in the agricultural GDP of four major European countries is compared with US agricultural growth for the period 1974–1993. The agricultural sector's relative prices are taken into account along with economy‐wide factor market adjustments. For Denmark, France, Germany and the UK, the effects of declining real prices and changes in input levels on growth in agricultural GDP are relatively small. Total Factor Productivity (TFP) growth appears to be the major contributor to European agricultural GDP growth. In comparison, TFP is the major source of growth in US agricultural GDP, but its rate of growth is lower than the European countries. In contrast, the declining real prices for US agriculture had a relatively large effect on its GDP. However, in recent years, the effects of declining real prices and declining rates of growth in TFP on European agriculture are relatively large. In the longer‐run, the relative competitiveness of US agriculture is largely dependent on its ability to sustain and increase growth in TFP.

Suggested Citation

  • Munisamy Gopinath & Carlos Arnade & Mathew Shane & Terry Roe, 1997. "Agricultural competitiveness: The case of the United States and major EU countries," Agricultural Economics, International Association of Agricultural Economists, vol. 16(2), pages 99-109, May.
    • Handle: RePEc:bla:agecon:v:16:y:1997:i:2:p:99-109
    DOI: 10.1111/j.1574-0862.1997.tb00446.x
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    1. Jahan, Nilufar & Smith, Perry & Rodriguez, Gil, 2002. "An analysis of the growth of the Australian dairy and meat processing industries," 2002 Conference (46th), February 13-15, 2002, Canberra, Australia 125113, Australian Agricultural and Resource Economics Society.
    2. Karolina Pawlak & Luboš Smutka & Pavel Kotyza, 2021. "Agricultural Potential of the EU Countries: How Far Are They from the USA?," Agriculture, MDPI, vol. 11(4), pages 1-21, March.
    3. Roe, Terry L. & Gopinath, Munisamy, 1996. "World Trade Issues And Food Security," Working Papers 14425, University of Minnesota, Center for International Food and Agricultural Policy.
    4. Xinshen Diao & Terry Roe & Agapi Somwaru, 2001. "What is the Cause of Growth in Regional Trade: Trade Liberalisation or RTAs? The Case of Agriculture," The World Economy, Wiley Blackwell, vol. 24(1), pages 51-79, January.
    5. Jana Poláková & Jaroslav Humpál & Adam Svoboda & Josef Soukup, 2024. "Interpreting Different Narratives about Land Services and Land Use Economics of Common Agricultural Policy," Land, MDPI, vol. 13(5), pages 1-21, May.
    6. Kirschke, D. & Weber, G., 2004. "Internationale Wettbewerbsfähigkeit und Optionen für die EU-Agrarpolitik," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 39.
    7. Karolina Pawlak & Walenty Poczta, 2020. "Agricultural Resources and their Productivity: A Transatlantic Perspective," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 18-49.
    8. Bazen, Ernest F. & Roberts, Roland K. & Travis, John & Larson, James A., 2008. "Factors Affecting Hay Supply and Demand in Tennessee," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6889, Southern Agricultural Economics Association.
    9. Phillips, Jon C. & Peterson, H. Christopher, 2004. "Product Differentiation and Target Marketing by Agricultural Producers," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2004, pages 1-11.
    10. Xavier Irz & Terry L. Roe, 1997. "Agriculture and economic growth in a market economy : analysis of the French postwar experience," Post-Print hal-02285607, HAL.
    11. Mullen, John & Keogh, Mick, 2013. "The Future Productivity and Competitiveness Challenge for Australian Agriculture," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152170, Australian Agricultural and Resource Economics Society.
    12. Francisco J. Goerlich & Ernest Reig & Isidro Cantarino, 2016. "Delimitación y características de las áreas rurales en los municipios y las provincias españolas," Working Papers 1606, Department of Applied Economics II, Universidad de Valencia.
    13. Anna Nowak & Monika Rozanska-Boczula & Artur Krukowski, 2020. "Competitiveness of Agriculture in New Member States of the European Union," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 160-175.
    14. Jahan, Nilufar & Smith, Perry & Rodriguez, Gil, 2003. "An analysis of the growth of the Australian dairy and meat processing sectors," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 11.
    15. Asif Rasool & David Abler, 2023. "Heterogeneity in US Farms: A New Clustering by Production Potentials," Agriculture, MDPI, vol. 13(2), pages 1-14, January.
    16. Mullen, John D. & Scobie, Grant M. & Crean, Jason, 2006. "Trends in Research, Productivity Growth and Competitiveness in Agriculture in New Zealand and Australia," 2006 Conference, August 24-25, 2006, Nelson, New Zealand 31965, New Zealand Agricultural and Resource Economics Society.

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