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Development of Total Factor Productivity in Alpine Farming - A Malmquist index approach -

  • Kantelhardt, J.
  • Kapfer, Martin
  • Franzel, M.
  • Kirchweger, Stefan
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    In comparison to flatland agriculture mountainous agriculture is often shaped by small plot sizes, unfavourable climatic conditions and steep slopes. All those conditions make it extraordinarily expensive to implement new technologies and to modernise farms. Consequently our research hypothesis is that technical progress in mountainous regions is slower in comparison to flatland regions. In order to test this hypothesis we develop a model combining a Malmquist index approach with a matching analysis. We apply our model in Austria, using a panel data set comprising the data of 1034 Austrian voluntarily bookkeeping farms and ranging from 2003 to 2009. On basis of the Austrian Mountain Farm Cadastre the farms are classified into five categories expressing the degree of disadvantage which farms are exposed from being located in a mountainous area. Our results show that technical change in mountain regions is significantly lower than in flatland regions and continuously decreasing with increasing disadvantage. Matching our results shows that this result is mainly based on farm grassland share, while farm size is of minor importance. With regard to efficiency change and change of total factor productivity we do not find any significant results.

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    File URL: http://purl.umn.edu/149897
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    Paper provided by Italian Association of Agricultural and Applied Economics (AIEAA) in its series 2013 Second Congress, June 6-7, 2013, Parma, Italy with number 149897.

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    Date of creation: Jun 2013
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    Handle: RePEc:ags:aiea13:149897
    Contact details of provider: Web page: http://www.aieaa.org/

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    1. Guido M. Imbens & Jeffrey M. Wooldridge, 2008. "Recent Developments in the Econometrics of Program Evaluation," NBER Working Papers 14251, National Bureau of Economic Research, Inc.
    2. Tim J. Coelli & D.S. Prasada Rao, 2003. "Total Factor Productivity Growth in Agriculture: A Malmquist Index Analysis of 93 Countries,1980-2000," CEPA Working Papers Series WP022003, School of Economics, University of Queensland, Australia.
    3. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    4. Balmann, Alfons & Czasch, Britta, 2001. "Zur Effizienz landwirtschaftlicher Unternehmen in Brandenburg – Eine Data Envelopment Analysis," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 50(3).
    5. Reig-Martinez, Ernest & Picazo-Tadeo, Andres J., 2004. "Analysing farming systems with Data Envelopment Analysis: citrus farming in Spain," Agricultural Systems, Elsevier, vol. 82(1), pages 17-30, October.
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