Productivity and Efficiency in European Milk Production: Can We Observe the Effects of Abolishing Milk Quotas?

Lukáš Čechura, Zdeňka Žáková Kroupová and Irena Benešová
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Lukáš Čechura: Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences Prague, Kamýcká 129, 16500 Prague, Czech Republic
Zdeňka Žáková Kroupová: Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences Prague, Kamýcká 129, 16500 Prague, Czech Republic
Irena Benešová: Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences Prague, Kamýcká 129, 16500 Prague, Czech Republic

Agriculture, 2021, vol. 11, issue 9, 1-21

Abstract: The study aims to explore the sources of competitiveness of dairy producers before and after the abolition of milk quotas in selected EU member states. The investigation is based on the stochastic frontier modelling of an input distance function in the specification of the four-error-component model. The model is estimated with a multistep procedure employing the generalized method of moments estimator, addressing the potential endogeneity of netputs, and panel data gained from the FADN database. The results revealed that total factor productivity experienced an increasing trend in the majority of the analysed countries. Since the main driver of productivity growth was found to be the scale effect, our findings support the hypothesis that abolishing milk quotas has a positive effect.

Keywords: stochastic frontier analysis; technical efficiency; productivity; milk production; abolishing milk quotas (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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