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Agricultural Competitiveness: The Case of the United States and Major EU Countries

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  • Gopinath, Munismay
  • Arnade, Carlos
  • Shane, Mathew
  • Roe, Terry

Abstract

Growth in the agricultural GDP of four major European countries is compared with U.S. agricultural growth for the period 1974-1993. The agricultural sector's domestic terms of trade with the rest of the economy is taken into account along with economy-wide factor market adjustments. For all the four countries— Denmark, France, Germany, and the U.K.— the effects of declining real prices and changes in input levels on growth in agricultural GDP are relatively small on average. Total Factor Productivity (TFP) appears to be the major contributor to European agricultural GDP growth. TFP is the major source of growth in U.S. and EU agricultural GDP, but its rate of growth in the United States is lower than the European countries for the same period. The declining real prices for U.S. agriculture had a large effect on its GDP as compared with the EU. However, in the late 1980s and early 1990s, the effects of declining real prices and declining rates of growth in TFP on European agriculture were relatively large. In the longer run, the relative competitiveness of U.S. agriculture is largely dependent on its ability to sustain and increase growth in TFP.

Suggested Citation

  • Gopinath, Munismay & Arnade, Carlos & Shane, Mathew & Roe, Terry, 1996. "Agricultural Competitiveness: The Case of the United States and Major EU Countries," Staff Reports 278811, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerssr:278811
    DOI: 10.22004/ag.econ.278811
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    6. Bazen, Ernest F. & Roberts, Roland K. & Travis, John & Larson, James A., 2008. "Factors Affecting Hay Supply and Demand in Tennessee," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6889, Southern Agricultural Economics Association.
    7. Phillips, Jon C. & Peterson, H. Christopher, 2004. "Product Differentiation and Target Marketing by Agricultural Producers," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2004, pages 1-11.
    8. Xavier Irz & Terry L. Roe, 1997. "Agriculture and economic growth in a market economy : analysis of the French postwar experience," Post-Print hal-02285607, HAL.
    9. Mullen, John & Keogh, Mick, 2013. "The Future Productivity and Competitiveness Challenge for Australian Agriculture," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152170, Australian Agricultural and Resource Economics Society.
    10. Francisco J. Goerlich & Ernest Reig & Isidro Cantarino, 2016. "Delimitación y características de las áreas rurales en los municipios y las provincias españolas," Working Papers 1606, Department of Applied Economics II, Universidad de Valencia.
    11. Jahan, Nilufar & Smith, Perry & Rodriguez, Gil, 2003. "An analysis of the growth of the Australian dairy and meat processing sectors," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 11.
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    13. Kirschke, D. & Weber, G., 2004. "Internationale Wettbewerbsfähigkeit und Optionen für die EU-Agrarpolitik," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 39.
    14. Anna Nowak & Monika Rozanska-Boczula & Artur Krukowski, 2020. "Competitiveness of Agriculture in New Member States of the European Union," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 160-175.
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    16. Mullen, John D. & Scobie, Grant M. & Crean, Jason, 2006. "Trends in Research, Productivity Growth and Competitiveness in Agriculture in New Zealand and Australia," 2006 Conference, August 24-25, 2006, Nelson, New Zealand 31965, New Zealand Agricultural and Resource Economics Society.

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