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Analysis of Total Factor Productivity Growth by Farm Size

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  • Heo, Yongjun

Abstract

This study measures agricultural total factor productivity (TFP) in Korea and its components such as technological and technical efficiency change by estimating a normal production function and a stochastic frontier production function. Panel data of farm size and type was used to estimate the production functions for the period of 2003~2011. As regards to the TFP analysis by farm size, the annual average growth rates of potential TFP and actual TFP have increased 1.34% and 1.16% respectively, while the growth rate after the 2000s has slowed down. Especially in the case of the farm size of more than 7 ha, the annual average growth rate of TFP is the highest. The TFP analysis by farm type shows that average annual growth rates of TFPs in the relatively highly capital-intensive farm types, such as for livestock, special crops, fruits, and flowers, are much higher than that of paddy rice, a land-intentive farm.

Suggested Citation

  • Heo, Yongjun, 2013. "Analysis of Total Factor Productivity Growth by Farm Size," Journal of Rural Development/Nongchon-Gyeongje, Korea Rural Economic Institute, vol. 36(01), May.
    • Handle: RePEc:ags:jordng:330578
    DOI: 10.22004/ag.econ.330578
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    File URL: https://ageconsearch.umn.edu/record/330578/files/RE36-1-04.pdf
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    Keywords

    Productivity Analysis;

    Statistics

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