The concept of economic efficiency in agriculture

Rodica Chetroiu and Ion Călin

MPRA Paper from University Library of Munich, Germany

Abstract: The economic efficiency is a concept with a complex content, which expresses the useful effect achieved in an economic activity, in relation to the requested expenditures, or the effort for its realization. Through its applicative side, the efficiency (e) can be defined as a quantitative ratio between the effects (E) and the resources or efforts (R) made to obtain them, or, in other words, achieving maximum effect with a specified level of consumptions, or reaching the determined effect with minimum consumption: e = E / R max (maximizing the effects obtained per unit of allocated, consumed resources); e = R / E min (minimizing the resource consumption per unit of effect achieved). This concept is the most important qualitative indicator of the economic development, a key factor in accelerating economic growth. Applied in agriculture, it represents the obtaining the maximum amount of production per hectare or per animal, with minimal expenditure of manpower and materials. Determination of economic efficiency must be based on knowledge of the elements that characterize the production effort and having three main sources: the optimal use of resources, rational use of labor and production management.

Keywords: economic efficiency; effects; resources; agriculture; concept (search for similar items in EconPapers)
JEL-codes: Q0 Q1 (search for similar items in EconPapers)
Date: 2013-10-21
New Economics Papers: this item is included in nep-agr and nep-eff
References: View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published in Agrarian Economy and Rural Development - Realities and Perspectives for Romania ISSN – 2285-6803; ISSN – L – 2285-6803.4(2013): pp. 258-263

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/55007/1/MPRA_paper_55007.pdf original version (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:pra:mprapa:55007

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().