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The damage-control effect of pesticides on total factor productivity growth

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  • Giannis Karagiannis
  • Vangelis Tzouvelekas

Abstract

This paper develops a framework for analysing the sources of total factor productivity (TFP) changes by explicitly taking into account the damage-control nature of pesticides. In the proposed framework, TFP changes are attributed to the conventional sources of growth (i.e. technical change, scale effect and changes in technical efficiency) and the damage-control effect which consists of three distinct components: the first one is due to changes in the initial pest infestation, the second is a spillover effect arising from neighbours' use of preventive inputs and the third is related to abatement effectiveness. The proposed model is applied to a panel of olive-growing farms in Crete, Greece, during the period 1999–2003. The empirical results indicate that the damage-control effect accounted, on average, for 5 per cent of the annual TFP growth and its main component was the improvements in abatement effectiveness. , Oxford University Press.

Suggested Citation

  • Giannis Karagiannis & Vangelis Tzouvelekas, 2012. "The damage-control effect of pesticides on total factor productivity growth," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 39(3), pages 417-437, July.
  • Handle: RePEc:oup:erevae:v:39:y:2012:i:3:p:417-437
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    File URL: http://hdl.handle.net/10.1093/erae/jbr025
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    References listed on IDEAS

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    1. Alfons Oude Lansink & Alain Carpentier, 2001. "Damage Control Productivity: An Input Damage Abatement Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(3), pages 11-22.
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    Cited by:

    1. Giannis Karagiannis, 2014. "Modeling issues in applied efficiency analysis: agriculture," Economics and Business Letters, Oviedo University Press, vol. 3(1), pages 12-18.
    2. Falkowski, Jan, 2013. "Does it matter how much land your neighbour owns? The functioning of land markets in Poland from a social comparison perspective," Factor Markets Working Papers 171, Centre for European Policy Studies.

    More about this item

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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