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Technical efficiency and total factor productivity in Czech agriculture

Author

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  • Lukáš Čechura

    (Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences Prague, Prague, Czech Republic)

Abstract

The paper deals with the analysis of technical efficiency and the total factor productivity (TFP) in Czech agriculture. The aim is to identify the key factors determining the efficiency of input use and the TFP development. The Fixed Management model is used for the estimation of technical efficiency and the construction of TFP for the total agriculture and its individual branches. The results show that technical inefficiency is an important phenomenon in Czech agriculture and its individual branches. The TFP development is determined by all components, i.e., technical efficiency, scale effect, technological change and management. Their contributions differ intrasectorally and intersectorally, and also in time. Finally, the developments in the individual branches are characterized by idiosyncratic factors, as well as the systemic effect, especially in the animal production. The most important factors which determine both technical efficiency and TFP are the factors connected with institutional and economic changes, in particular a dramatic increase in the imports of meat and increasing subsidies.

Suggested Citation

  • Lukáš Čechura, 2012. "Technical efficiency and total factor productivity in Czech agriculture," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 58(4), pages 147-156.
    • Handle: RePEc:caa:jnlage:v:58:y:2012:i:4:id:56-2011-agricecon
    DOI: 10.17221/56/2011-AGRICECON
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    References listed on IDEAS

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    1. Cechura, Lukas & Hockmann, Heinrich, 2010. "Sources of economical growth in the Czech food processing," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 19(2), pages 169-182.
    2. A. Juřica & T. Medonos & L. Jelínek, 2004. "Structural changes and efficiency in Czech agriculture in the pre-accession period," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 50(3), pages 130-138.
    3. Lukáš ČECHURA, 2010. "Estimation of technical efficiency in Czech agriculture with respect to firm heterogeneity," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 56(4), pages 183-191.
    4. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
    5. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "Multilateral Comparisons of Output, Input, and Productivity Using Superlative Index Numbers," Economic Journal, Royal Economic Society, vol. 92(365), pages 73-86, March.
    6. Diewert, W. E., 1976. "Exact and superlative index numbers," Journal of Econometrics, Elsevier, vol. 4(2), pages 115-145, May.
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