Common Agricultural Policy support, technical efficiency and productivity change in French agriculture

Laure Latruffe and Yann Desjeux

Review of Agricultural, Food and Environmental Studies, vol. 97, issue 01

Abstract: This paper investigates how the various changes in the policy supporting agriculture in the European Union, i.e. the Common Agricultural Policy (CAP), and various types of subsidies (investment, production and rural development) af- fected the technical efficiency and productivity change of farms in France between 1990 and 2006. Three types of farm- ing — field crop, dairy and beef cattle — are considered. Comparison of efficiency across periods indicates a signifi- cant reduction in efficiency in the period following the first CAP reform (1992 MacSharry reform) but an improvement in efficiency change. Econometric results related to the effect of subsidies on efficiency scores (with fixed effect models) and productivity change indices (with ordinary least squares) give ambiguous findings. The effect of a particular type of subsidy was found to be negative or positive depending on the sam- ple ’ s production orientation and on the performance consid- ered. Several methodological recommendations are drawn from the analysis for future research.

Keywords: Agricultural; and; Food; Policy (search for similar items in EconPapers)
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Journal Article: Common Agricultural Policy support, technical efficiencyand productivity change in French agriculture (2016)
Journal Article: Common Agricultural Policy support, technical efficiency and productivity change in French agriculture (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:frrfes:277755

DOI: 10.22004/ag.econ.277755

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