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Technical Efficiency of Agriculture in the European Union and Western Balkans: SFA Method

Author

Listed:
  • Danilo Đokić

    (Faculty of Economics in Subotica, University of Novi Sad, 24000 Subotica, Serbia)

  • Tihomir Novaković

    (Faculty of Agriculture, University of Novi Sad, 21000 Novi Sad, Serbia)

  • Dragana Tekić

    (Faculty of Agriculture, University of Novi Sad, 21000 Novi Sad, Serbia)

  • Bojan Matkovski

    (Faculty of Economics in Subotica, University of Novi Sad, 24000 Subotica, Serbia)

  • Stanislav Zekić

    (Faculty of Economics in Subotica, University of Novi Sad, 24000 Subotica, Serbia)

  • Dragan Milić

    (Faculty of Agriculture, University of Novi Sad, 21000 Novi Sad, Serbia)

Abstract

Improvements in productivity and efficiency, together with agricultural modernization, are crucial in the process of future sustainable development. As Western Balkan (WB) countries are in the process of integration into the European Union (EU), the importance of agricultural efficiency in an economic and environmental context and the actuality of the problems of the agricultural sector are very important. In that context, the paper’s main goal is to examine agriculture’s technical efficiency in the EU and WB. The additional goal is to group analyzed countries by agricultural performances. A stochastic frontier analysis (SFA) is used to calculate the technical efficiency of agriculture. Results have shown a significant difference in technical efficiency between WB and the EU. Furthermore, the cluster analysis has indicated the connection between overall economic development and agricultural development, partially “deformed” by agri-environmental and climate conditions. The exogenous factors do not have a crucial influence on the overall technical efficiency of agriculture in observed countries, indicating that the endogenous factors must be improved. The paper impacts recommendations for optimizing the use of inputs and improving the educations of farmers in WB countries to achieve economic and environmental goals.

Suggested Citation

  • Danilo Đokić & Tihomir Novaković & Dragana Tekić & Bojan Matkovski & Stanislav Zekić & Dragan Milić, 2022. "Technical Efficiency of Agriculture in the European Union and Western Balkans: SFA Method," Agriculture, MDPI, vol. 12(12), pages 1-18, November.
    • Handle: RePEc:gam:jagris:v:12:y:2022:i:12:p:1992-:d:982491
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    References listed on IDEAS

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    Cited by:

    1. Oana Coca & Diana Creangă & Ștefan Viziteu & Ioan Sebastian Brumă & Gavril Ștefan, 2023. "Analysis of the Determinants of Agriculture Performance at the European Union Level," Agriculture, MDPI, vol. 13(3), pages 1-23, March.
    2. Đokić, Danilo & Matkovski, Bojan & Jeremić, Marija & Đurić, Ivan, 2022. "Land productivity and agri-environmental indicators: A case study of Western Balkans," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 11(12), pages 1-13.

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