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Subsidies, production structure and technical change – A cross-country comparison

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  • Key, Nigel D.
  • Latruffe, Laure
  • Sauer, Johannes

Abstract

The effect of subsidies on production and technical change of crop farms in France and the United Kingdom (UK) during 1980-2006 is investigated. Subsidies were not neutral on production decisions, in terms of production intensity and type. Crop farms in both countries have experienced technical progress during the period studied, higher in France. Technical progress has favoured labour and chemicals in both countries, land in France, capital in the UK, while it has disfavoured land in the UK and capital in France. Technical change has been slowed down by crop area subsidies but increased by agri-environmental subsidies in both countries.

Suggested Citation

  • Key, Nigel D. & Latruffe, Laure & Sauer, Johannes, 2010. "Subsidies, production structure and technical change – A cross-country comparison," 114th Seminar, April 15-16, 2010, Berlin, Germany 61109, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaa114:61109
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    References listed on IDEAS

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    1. Morrison Paul, Catherine J. & Sauer, Johannes, 2010. "Distinguishing Different Industry Technologies and Localized Technical Change," 84th Annual Conference, March 29-31, 2010, Edinburgh, Scotland 91749, Agricultural Economics Society.
    2. Brummer, B. & Glauben, T. & Lu, W., 2006. "Policy reform and productivity change in Chinese agriculture: A distance function approach," Journal of Development Economics, Elsevier, vol. 81(1), pages 61-79, October.
    3. Paul, Catherine J. Morrison & Nehring, Richard, 2005. "Product diversification, production systems, and economic performance in U.S. agricultural production," Journal of Econometrics, Elsevier, vol. 126(2), pages 525-548, June.
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    Keywords

    technical change; subsidies; input bias; crop farms; Agricultural and Food Policy; Farm Management; Land Economics/Use;

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