Technical efficiency and its determinants in the European Union

Anna Nowak · Tomasz Kijek · Katarzyna Domańska

63 citations0/0 files storedAgricultural Economics (Zemědělská ekonomika)

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Efficiency Analysis Using DEA Agricultural economics and policies Agricultural Economics and Policy

Abstract

The study concerns the measurement of the technical efficiency of agriculture in the 27 European Union (EU) countries in 2010. The studies were conducted based on the result-oriented DEA method assuming variable advantages of scale. Moreover, in the study, the factors affecting technical efficiency were identified, and the econometric modelling of their impact was performed with the use of the Tobit model. The studies indicate that across the 27 EU Member States, the level of the technical efficiency of agriculture is diverse, and the difference between the states with the highest and the lowest efficiencies is 40%. Cyprus, Denmark, Greece, France, Spain, the Netherlands, Luxembourg, Italy and Malta were identified as the countries with the thoroughly technically efficient agriculture. In turn, the least technically efficient agriculture is observed for the Czech Republic, Lithuania, Hungary, Ireland, Latvia and Slovakia. Taking into account the factors determining the technical agriculture efficiency, it should be noted that the stimulants have proven to be such factors as: the soil quality, the age of the head of the household and the surcharges for investments. In turn, the size of the farm appeared to be irrelevant from the viewpoint of the technical efficiency of the agricultural sector.

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References

1978Measuring the efficiency of decision making units 1984Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis 2008Data envelopment analysis (DEA) – Thirty years on 2005Total factor productivity growth in agriculture: a Malmquist index analysis of 93 countries, 1980–2000 2010Assessing farming eco-efficiency: A Data Envelopment Analysis approach 2004Determinants of technical efficiency of crop and livestock farms in Poland 2013Six Decades of Total Factor Productivity Change and Sources of Growth in Bangladesh Agriculture (1948–2008)2009Determinants of technical efficiency of Slovenian farms

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2017Efficiency, total factor productivity and returns to scale in a sustainable perspective: An analysis in the European Union at farm and regional level 2019Evaluation of total factor productivity and environmental efficiency of agriculture in nine East Asian countries 2022Technical Efficiency of Agriculture in the European Union and Western Balkans: SFA Method 2023Analysis of the Determinants of Agriculture Performance at the European Union Level

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