Total factor productivity change of agriculture in five Southern European countries

Ioanna Reziti

Agricultural Economics Review, 2019, vol. Volume 20, issue Issue 2

Abstract: The aim of this paper is to compute the Total Factor Productivity (TFP) change in the agricultural sector of five Southern European countries (Greece, Spain, Italy, Cyprus and Portugal) during 2007-2018. We measure TFP change using the Färe-Primont index that satisfies a set of basic axioms from index theory (e.g., identity, proportionality, transitivity). By decomposing this index, estimates of technical change and technical efficiency as well as scale and mix efficiency are obtained. The results show that Cyprus is the most productive country and the only one that experiences an increase in TFP due to both technical progress and improvement in scale and mix efficiency. The rest of the countries face TFP declines over time due to declining scale and mix efficiency. Technical progress was not adequate to offset the deterioration in efficiency. Policy implications of these results are that countries should continue to pursue technical progress and to improve scale and mix efficiency by changing at least one input and at least one output.

Keywords: Productivity Analysis; Research and Development/Tech Change/Emerging Technologies (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/330640/files/20_2_2.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:aergaa:330640

DOI: 10.22004/ag.econ.330640

Access Statistics for this article

More articles in Agricultural Economics Review from Greek Association of Agricultural Economists Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().