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Impact of public subsidies on farms’ technical efficiency in New Member States before and after EU accession

Author

Listed:
  • Latruffe, Laure
  • Bakucs, Lajos Zoltan
  • Bojnec, Stefan
  • Ferto, Imre
  • Fogarasi, Jozsef
  • Gavrilescu, Camelia
  • Jelinek, Ladislav
  • Luca, Lucian
  • Medonos, Tomas
  • Toma, Camelia

Abstract

This paper presents some results of a two-year (2006-2007) research project supported by the French Ministry of Research’s funding program ECONET. One of the project’s objectives was to investigate the determinants of farm technical efficiency in New Member States before and after accession to the European Union, and in particular the role of public subsidies on this performance variable. Four countries were considered: Hungary, the Czech Republic and Slovenia, who acceded to the EU in 2004, and Romania, whose accession was in 2007. The study found that subsidies had a negative impact on farm technical efficiency in Hungary over the period 2001-2005, in the Czech dairy corporate sector over the period 2000-2004, in Slovenia over the period 1994-2003, and in the Romanian crop sector in 2005.

Suggested Citation

  • Latruffe, Laure & Bakucs, Lajos Zoltan & Bojnec, Stefan & Ferto, Imre & Fogarasi, Jozsef & Gavrilescu, Camelia & Jelinek, Ladislav & Luca, Lucian & Medonos, Tomas & Toma, Camelia, 2008. "Impact of public subsidies on farms’ technical efficiency in New Member States before and after EU accession," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44142, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae08:44142
    DOI: 10.22004/ag.econ.44142
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    References listed on IDEAS

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    1. Konstantinos Giannakas & Richard Schoney & Vangelis Tzouvelekas, 2001. "Technical Efficiency, Technological Change and Output Growth of Wheat Farms in Saskatchewan," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 49(2), pages 135-152, July.
    2. Herve Guyomard & Laure Latruffe & Chantal Le Mouël, 2006. "Technical efficiency, technical progress and productivity change in French agriculture: do subsidies and farms' size matter?," Post-Print hal-01595069, HAL.
    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. Rezitis, Anthony N. & Tsiboukas, Kostas & Tsoukalas, Stauros, 2003. "Investigation of Factors Influencing the Technical Efficiency of Agricultural Producers Participating in Farm Credit Programs: The Case of Greece," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 35(3), pages 1-13, December.
    5. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
    6. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-444, June.
    7. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
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    Cited by:

    1. 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.
    2. Mariarosaria Agostino & Ercan Enzo Comert & Federica Demaria & Sabrina Ruberto, 2024. "What kinds of subsidies affect technical efficiency? The case of Italian dairy farms," Agribusiness, John Wiley & Sons, Ltd., vol. 40(1), pages 116-138, January.
    3. 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.
    4. 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.

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    Farm Management;

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