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The Role of Knowledge Capital in Total Factor Productivity Changes: The Case of Agriculture in EU Countries

Author

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  • Kijek, Tomasz
  • Nowak, Anna
  • Domańska, Katarzyna

Abstract

The present study concerns the impact of knowledge capital on total factor productivity (TFP) changes in 27 European Union (EU) countries. The TFP analysis covered the years 2009-2013. The study conducted was based on a Malmquist productivity index. The knowledge capital was approximated through investments in research and development in the years 2000 and 2008. Furthermore, the study included external benefits resulting from the R&D activities in other countries. In addition to the knowledge capital, the variables approximating human capital were accepted as determinants of TFP, i.e., the percentage of farm managers with full agricultural training and the percentage of farms managed by holders aged 55. The impact of knowledge and human capital on TFP was determined using a linear regression model. The results of the study indicate that the R&D expenditures incurred in the year 2000 are the stimulants of productivity growth, which confirms the assumption that there is a time lag between R&D and its benefits. Moreover, a positive effect on TFP growth was observed for the variable approximating human capital, i.e., the participation of farmers over the age of 55.

Suggested Citation

  • Kijek, Tomasz & Nowak, Anna & Domańska, Katarzyna, 2016. "The Role of Knowledge Capital in Total Factor Productivity Changes: The Case of Agriculture in EU Countries," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 65(03), September.
  • Handle: RePEc:ags:gjagec:284977
    DOI: 10.22004/ag.econ.284977
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    Citations

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    Cited by:

    1. Arkadiusz Kijek & Tomasz Kijek & Anna Nowak, 2020. "Club convergence of labour productivity in agriculture: Evidence from EU countries," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(9), pages 391-401.
    2. Myriam Preiss & Julia H.-M. Vogt & Carsten Dreher & Monika Schreiner, 2022. "Trends Shaping Western European Agrifood Systems of the Future," Sustainability, MDPI, vol. 14(21), pages 1-18, October.
    3. Arkadiusz Kijek & Tomasz Kijek & Anna Nowak & Adam Skrzypek, 2019. "Productivity and its convergence in agriculture in new and old European Union member states," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 65(1), pages 01-09.
    4. Reziti, Ioanna, 2019. "Total factor productivity change of agriculture in five Southern European countries," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 0(Issue 2).
    5. Bazyli Czyżewski & Agnieszka Sapa & Piotr Kułyk, 2021. "Human Capital and Eco-Contractual Governance in Small Farms in Poland: Simultaneous Confirmatory Factor Analysis with Ordinal Variables," Agriculture, MDPI, vol. 11(1), pages 1-16, January.

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