Productivity and Convergence in European Agriculture

Lajos Baráth and Imre Fertő

No 1626, CERS-IE WORKING PAPERS from Institute of Economics, Centre for Economic and Regional Studies

Abstract: In the paper we investigate relative productivity levels and decompose productivity change for European agriculture between 2004 and 2013. More specifically (1) we contribute to the debate whether agricultural Total Factor Productivity (TFP) has declined or not in the European Union (EU); (2) we compare the relative TFP level across EU member states and investigate the difference between ‘old’ member states (OMS, i.e. the EU-15) and ‘new’ member states (NMS) and (3) we test whether TFP is converging or not among member states. The empirical analysis applies the aggregate quantity framework developed in O’Donnell (2008), using country level panel data from the Economic Accounts for Agriculture for 23 EU member states. The results imply that TFP has slightly decreased in the EU over the analysed period; however there are significant differences in this respect between the OMS and NMS and across member states. Finally, our estimations support the productivity convergence hypothesis across the member sates.

Keywords: Total Factor Productivity (TFP) level, Agricultural productivity in the EU; Färe-Primont TFP index; TFP components; technical efficiency, scale efficiency, mix efficiency (search for similar items in EconPapers)
JEL-codes: Q12 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2016-08
New Economics Papers: this item is included in nep-agr, nep-eff and nep-eur
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Journal Article: Productivity and Convergence in European Agriculture (2017)
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