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The Elasticity of Agricultural Income in the EU Member States Under Different Cost Structures

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  • Kryszak, Łukasz
  • Staniszewski, Jakub

Abstract

The aim of this paper was to determine whether the EU countries which vary in terms of their cost structure in agriculture, differ also with regard to the influence of capital-labour ratio and land supply per worker on labour profitability. It was assumed that data concerning the presence and character of those differences can contribute to better understanding of the nature of agricultural development in the EU countries. The main sources of data used in this paper were the Economic Accounts for Agriculture (Eurostat) and the FAOStat database. The study covered the period of 2004-2014. In the article it was shown that agriculture in the EU countries is varied in terms of cost structure, and in the cluster II, including mostly the countries of the so-called “new” EU, intermediate consumption is of relatively larger significance for their cost structure. In the countries of the “old” EU an important role is played by the depreciation of buildings and external services. Stronger influence of capital-labour ratio on the payment to the factor of labour was observed in the cluster II countries. In those countries, increasing capital expenditures was a more efficient strategy to increase income.

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  • Kryszak, Łukasz & Staniszewski, Jakub, 2017. "The Elasticity of Agricultural Income in the EU Member States Under Different Cost Structures," Problems of World Agriculture / Problemy Rolnictwa Światowego, Warsaw University of Life Sciences, vol. 17(32, Part ), December.
    • Handle: RePEc:ags:polpwa:266515
    DOI: 10.22004/ag.econ.266515
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    References listed on IDEAS

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    2. Severini, Simone & Tantari, Antonella, 2013. "The effect of the EU farm payments policy and its recent reform on farm income inequality," Journal of Policy Modeling, Elsevier, vol. 35(2), pages 212-227.
    3. Ellen Goddard & Alfons Weersink & Kevin Chen & Calum G. Turvey, 1993. "Economics of Structural Change in Agriculture," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 41(4), pages 475-489, December.
    4. Heiko Hansen & Ramona Teuber, 2011. "Assessing the impacts of EU's common agricultural policy on regional convergence: sub-national evidence from Germany," Applied Economics, Taylor & Francis Journals, vol. 43(26), pages 3755-3765.
    5. Anh Tru Nguyen & Janet Dzator & Andrew Nadolny, 2015. "Does contract farming improve productivity and income of farmers? A review of theory and evidence," Journal of Developing Areas, Tennessee State University, College of Business, vol. 49(5), pages 531-538, Special I.
    6. Sitakanta Panda, 2015. "Farmer education and household agricultural income in rural India," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 42(6), pages 514-529, June.
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    1. Łukasz Kryszak & Marta Guth & Bazyli Czyżewski, 2021. "Determinants of farm profitability in the EU regions. Does farm size matter?," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(3), pages 90-100.

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