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Productivity change in Slovenian agriculture during the transition: a comparison of production branches

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  • Stefan Bojnec

    (CIG ASE - The Faculty of Accounting and Management Information Systems, Academia de Studii Economice din Bucureşti - A.S.E. - The Bucharest Academy of Economic Studies / Academia de Studii Economice din Bucureşti)

  • Laure Latruffe

    (Économie et Sociologie Rurales - INRA - Institut National de la Recherche Agronomique)

Abstract

In this paper we investigate how Total Factor Productivity (TFP) has developed in Slovenian agriculture during the ten years of the transition for the period 1994-2003, and which agricultural production specializations recorded the highest TFP growth. We use an output-oriented TFP model that includes three different outputs (crop, livestock, and other outputs) and four inputs (land, labor, capital, and intermediate consumption). Empirical results indicate that TFP, on average, progressed only slightly, by 1.2 percent, over the ten-year period. However, this relatively slow TFP growth hides a switchback evolution over the analyzed period. The decomposition of the TFP change indicates that its change is mostly due to a technological change, which increased by 3 percent. Technical efficiency has remained rather stable on average, suggesting that farmers were able to implement the new technologies on time. Dissimilar developments in TFP are shown according to the production specialization. Crop farms have performed the best, with a TFP progress on average by 9 percent solely due to technological progress. For all branches, technological change constitutes the sole part of TFP change, except for sheep farms, which recorded a high technical efficiency progress. As we used a common frontier, our result indicates that crop specialization is leading the country's agricultural technology.

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  • Stefan Bojnec & Laure Latruffe, 2007. "Productivity change in Slovenian agriculture during the transition: a comparison of production branches," Post-Print hal-02283465, HAL.
    • Handle: RePEc:hal:journl:hal-02283465
    Note: View the original document on HAL open archive server: https://hal.science/hal-02283465
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    References listed on IDEAS

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    1. 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.
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    7. Kelvin Balcombe & Sophia Davidova & Laure Latruffe, 2005. "Productivity change in Polish agriculture : an application of a bootstrap procedure to Malmquist indices," Post-Print hal-02285625, HAL.
    8. Piesse, Jenifer & Thirtle, Colin & Turk, Jernej, 1996. "Efficiency and Ownership in Slovene Dairying: A Comparison of Econometric and Programming Techniques," Journal of Comparative Economics, Elsevier, vol. 22(1), pages 1-22, February.
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    1. Bojnec, Stefan & Latruffe, Laure, 2007. "Farm Size and Efficiency: The Case of Slovenia," 100th Seminar, June 21-23, 2007, Novi Sad, Serbia and Montenegro 162391, European Association of Agricultural Economists.

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