Competitiveness and resilience dynamics in the Italian olive sector: An in-depth analysis

Fatima Lambarraa-Lehnhardt, Adolfo Rosati, Syeda Aleena Hasnain and Luca Turchetti

No 344256, IAAE 2024 Conference, August 2-7, 2024, New Delhi, India from International Association of Agricultural Economists (IAAE)

Abstract: This paper investigates the interaction among potential and revealed resilience capacities, technical efficiency, and total factor productivity (TFP) in Italian olive farms using FADN data from 2013-2019. To achieve this objective, we use principal component analysis for evaluating potential resilience indicators and a stochastic frontier model (SFM) to assess farms' competitiveness and evaluate the impact of resilience measures on farms' efficiency and productivity. Results show that Italian olive farms exhibit higher resilience in transformability, followed by robustness and adaptability. Resilience indicators negatively impact technical efficiency. TFP growth is notably influenced by adaptability. Results suggest that balancing competitiveness and resilience is crucial to achieving a sustainable farming system. To face climate change challenges, policies should facilitate transitions to a climate-resilient farming system by incentivizing investments in climate adaptive technologies and designing careful subsidy programs that emphasize the long-term resilience benefits of sustainable farming practices rather than considering immediate efficiency gains. Farmer support through training and collaborative networks is vital to strengthening farms' adaptability and transformability capacities.

Keywords: Production Economics; Productivity Analysis; Research Methods/Statistical Methods (search for similar items in EconPapers)
Pages: 21
Date: 2024-08-07
New Economics Papers: this item is included in nep-agr, nep-eff and nep-env
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Persistent link: https://EconPapers.repec.org/RePEc:ags:cfcp15:344256

DOI: 10.22004/ag.econ.344256

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