IDEAS home Printed from https://ideas.repec.org/p/ags/aiea15/207353.html
   My bibliography  Save this paper

Development of productivity and its components in Slovak agriculture before and after EU accession: Analysis of the impact of CAP introduction on the performance indicators of Slovak crop and livestock farms

Author

Listed:
  • Zbranek, Peter
  • Fandel, Peter

Abstract

The common agricultural policy affects a broad range of issues on farms. Their productivity is no exception and CAP can affect it with different intensities and in different directions. CAP was introduced in the Slovak Republic after its accession to the EU in 2004. From that moment there was a significant increase in number of farms receiving subsidies. The aim of this paper was therefore to analyze the impact of these changes on the development of productivity and its components on the Slovak farms. The research consisted of two stages. The first stage we got a detailed picture of the evolving nature of the performance of Slovak crop and livestock farms in the period 2000-2012 by applying two approaches to evaluation of change in total factor productivity and its components, namely Malmquist Productivity Indices and Luenberger Productivity Indicators. We found that on average both types of farms increased their total factor productivity during the specified period. The driving force behind this development was the technological progress, the slowing factor was deterioration of technical efficiency of farms. By way of further decomposition of Malmquist indices we have also revealed Hicks-non-neutral technical change in the character of Slovak agriculture since the industry increasingly opted for automation and mechanization of production and mitigated use of the workforce. In the second stage we applied Random Effect Models for analyzing panel data to examine the effects of accession to the EU on the development of performance indicators of Slovak farms and input bias of technical change. We found that dependence on farm subsidy policy was significantly higher after joining the Union, while total factor productivity after 2004 developed worse for both types of farms. The effect of changes in the share of total subsidies received on total farm income was the net effect of investment induced productivity growth and the negative effect of efficiency loss. The first prevailed in the case of crop and the second one in the case of livestock farms.

Suggested Citation

  • Zbranek, Peter & Fandel, Peter, 2015. "Development of productivity and its components in Slovak agriculture before and after EU accession: Analysis of the impact of CAP introduction on the performance indicators of Slovak crop and livestoc," 2015 Fourth Congress, June 11-12, 2015, Ancona, Italy 207353, Italian Association of Agricultural and Applied Economics (AIEAA).
  • Handle: RePEc:ags:aiea15:207353
    DOI: 10.22004/ag.econ.207353
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/207353/files/ZbranekFandelAIEAA2015.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.207353?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Fogarasi, Jozsef & Latruffe, Laure, 2009. "Farm performance and support in Central and Western Europe: a comparison of Hungary and France," 83rd Annual Conference, March 30 - April 1, 2009, Dublin, Ireland 51053, Agricultural Economics Society.
    2. Marian Rizov & Jan Pokrivcak & Pavel Ciaian, 2013. "CAP Subsidies and Productivity of the EU Farms," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(3), pages 537-557, September.
    3. Belen Iraizoz & Isabel Bardaji & Manuel Rapun, 2005. "The Spanish beef sector in the 1990s: impact of the BSE crisis on efficiency and profitability," Applied Economics, Taylor & Francis Journals, vol. 37(4), pages 473-484.
    4. 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.
    5. Rolf Färe & Shawna Grosskopf, 2000. "Theory and Application of Directional Distance Functions," Journal of Productivity Analysis, Springer, vol. 13(2), pages 93-103, March.
    6. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
    7. Latruffe, Laure & Bravo-Ureta, Boris E. & Moreira, Victor H. & Desjeux, Yann & Dupraz, Pierre, 2012. "Productivity and Subsidies in the European Union: An Analysis for Dairy Farms Using Input Distance Frontiers," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126846, International Association of Agricultural Economists.
    8. Roe, Terry & Somwaru, Agapi & Diao, Xinshen, 2002. "Do direct payments have intertemporal effects on U.S. agriculture?," TMD discussion papers 104, International Food Policy Research Institute (IFPRI).
    9. Bert Balk & Rolf Färe & Shawna Grosskopf & Dimitris Margaritis, 2008. "Exact relations between Luenberger productivity indicators and Malmquist productivity indexes," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 35(1), pages 187-190, April.
    10. Lajos Zoltan Bakucs & Laure Latruffe & Imre Fertő & Jozsef Fogarasi, 2010. "The impact of EU accession on farms' technical efficiency in Hungary," Post-Communist Economies, Taylor & Francis Journals, vol. 22(2), pages 165-175.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Laure Latruffe & Yann Desjeux, 2016. "Common Agricultural Policy support, technical efficiency and productivity change in French agriculture," Review of Agricultural, Food and Environmental Studies, Springer, vol. 97(1), pages 15-28, June.
    2. Minviel, Jean Joseph & Latruffe, Laure, 2014. "Meta-regression analysis of the impact of agricultural subsidies on farm technical efficiency," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182767, European Association of Agricultural Economists.
    3. Sebastian Kohl & Jan Schoenfelder & Andreas Fügener & Jens O. Brunner, 2019. "The use of Data Envelopment Analysis (DEA) in healthcare with a focus on hospitals," Health Care Management Science, Springer, vol. 22(2), pages 245-286, June.
    4. Pastor, Jesus T. & Lovell, C.A. Knox & Aparicio, Juan, 2020. "Defining a new graph inefficiency measure for the proportional directional distance function and introducing a new Malmquist productivity index," European Journal of Operational Research, Elsevier, vol. 281(1), pages 222-230.
    5. Marie-Noelle Duquenne & Maria Tsiapa & Valantis Tsiakos, 2019. "Contribution of the Common Agricultural Policy to agricultural productivity of EU regions during 2004–2012 period," Review of Agricultural, Food and Environmental Studies, Springer, vol. 100(1), pages 47-68, December.
    6. Pastor, Jesus T. & Zofio, Jose L., 2017. "Can Farrell's allocative efficiency be generalized by the directional distance function approach?Author-Name: Aparicio, Juan," European Journal of Operational Research, Elsevier, vol. 257(1), pages 345-351.
    7. Portela, Maria C.A.S. & Thanassoulis, Emmanuel, 2010. "Malmquist-type indices in the presence of negative data: An application to bank branches," Journal of Banking & Finance, Elsevier, vol. 34(7), pages 1472-1483, July.
    8. Diogo Cunha Ferreira & Rui Cunha Marques, 2016. "Malmquist and Hicks–Moorsteen Productivity Indexes for Clusters Performance Evaluation," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 15(05), pages 1015-1053, September.
    9. Kim, Kyunam & Kim, Yeonbae, 2012. "International comparison of industrial CO2 emission trends and the energy efficiency paradox utilizing production-based decomposition," Energy Economics, Elsevier, vol. 34(5), pages 1724-1741.
    10. Maria Martinez Cillero & Fiona Thorne & Michael Wallace & James Breen & Thia Hennessy, 2018. "The Effects of Direct Payments on Technical Efficiency of Irish Beef Farms: A Stochastic Frontier Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 69(3), pages 669-687, September.
    11. Cillero, Maria Martinez & Breen, James & Thorne, Fiona & Wallace, Michael, 2017. "The effect of the implementation of the 2003 Mid-Term Review of the CAP on technical efficiency of beef production. A comparative analysis," 91st Annual Conference, April 24-26, 2017, Royal Dublin Society, Dublin, Ireland 258617, Agricultural Economics Society.
    12. Carlos Barros & Hercules Haralambides & Mohamed Hussain & Nicolas Perpoch, 2011. "Seaport Efficiency and Productivity Growth," Chapters, in: Kevin Cullinane (ed.), International Handbook of Maritime Economics, chapter 17, Edward Elgar Publishing.
    13. Jerzy Marzec & Andrzej Pisulewski, 2017. "The Effect of CAP Subsidies on the Technical Efficiency of Polish Dairy Farms," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 9(3), pages 243-273, September.
    14. Afsharian, Mohsen & Ahn, Heinz & Lopes, Ana & Vilela, Bruno, 2019. "Pitfalls in estimating the X-factor: The case of energy transmission regulation in Brazil," Socio-Economic Planning Sciences, Elsevier, vol. 65(C), pages 1-9.
    15. Duen-Yian Yeh & Ching-Hsue Cheng, 2016. "Performance Management of Taiwan’s National Hospitals," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 15(01), pages 187-213, January.
    16. Büschken, Joachim, 2009. "When does data envelopment analysis outperform a naïve efficiency measurement model?," European Journal of Operational Research, Elsevier, vol. 192(2), pages 647-657, January.
    17. Debdatta Pal & Subrata K. Mitra, 2018. "The efficiency of microfinance institutions with problem loans: A directional distance function approach," Computational and Mathematical Organization Theory, Springer, vol. 24(3), pages 285-307, September.
    18. R, Sendhil & P, Ramasundaram & P, Anbukkani & Singh, Randhir & Sharma, Indu, 2015. "Trends and Determinants of Research Driven Total Factor Productivity in Indian Wheat," 2015 Conference, August 9-14, 2015, Milan, Italy 212491, International Association of Agricultural Economists.
    19. Basurto Hernandez, Saul & Maddison, David & Banerjee, Anindya, 2018. "The effect of PROCAMPO on farms’ technical efficiency: A Stochastic Frontier Analysis," 2018 Annual Meeting, August 5-7, Washington, D.C. 274376, Agricultural and Applied Economics Association.
    20. Fogarasi, Jozsef & Latruffe, Laure, 2009. "Farm performance and support in Central and Western Europe: A comparison of Hungary and France," 2009 Conference, August 16-22, 2009, Beijing, China 51431, International Association of Agricultural Economists.

    More about this item

    Keywords

    Agricultural and Food Policy;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aiea15:207353. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/aieaaea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aieaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.