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Technical Efficiency in the Agricultural Business—The Case of Slovakia

Author

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  • Jarmila Lazíková

    (Department of Law, Slovak University of Agriculture in Nitra, 949 76 Nitra, Slovakia)

  • Zuzana Lazíková

    (Department of Law, Slovak University of Agriculture in Nitra, 949 76 Nitra, Slovakia)

  • Ivan Takáč

    (Department of European Policies, Slovak University of Agriculture in Nitra, 949 76 Nitra, Slovakia)

  • Ľubica Rumanovská

    (Department of European Policies, Slovak University of Agriculture in Nitra, 949 76 Nitra, Slovakia)

  • Anna Bandlerová

    (Department of Law, Slovak University of Agriculture in Nitra, 949 76 Nitra, Slovakia)

Abstract

The key element of the European Union (EU) Common Agricultural Policy is sustainable agriculture where the social, economic, and environmental objectives should be fulfilled. This role can fulfill only those agricultural holdings that are effective in the transformation of inputs to outputs, and which do not waste the inputs. Therefore, we analyze the technical efficiency of the agricultural holdings in the Slovak regions, and try to identify the factors that are able to influence the efficiency of agricultural holdings. We can conclude that there are regional disparities in technical efficiency in Slovakia; however, the problem of inefficiency is not typical only for the agricultural holdings in the areas with natural constraints. These regional disparities should be considered when adopting a new political measure to support sustainable agriculture. By the results of econometric models, we find that the agricultural production diversity, the policy of the labor market, and tax policy are the important factors influencing the technical efficiency of the agricultural holdings in Slovakia.

Suggested Citation

  • Jarmila Lazíková & Zuzana Lazíková & Ivan Takáč & Ľubica Rumanovská & Anna Bandlerová, 2019. "Technical Efficiency in the Agricultural Business—The Case of Slovakia," Sustainability, MDPI, vol. 11(20), pages 1-17, October.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:20:p:5589-:d:275162
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    References listed on IDEAS

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    1. Lajos Baráth & Imre Fertő & Heinrich Hockmann, 2020. "Technological Differences, Theoretical Consistency, and Technical Efficiency: The Case of Hungarian Crop-Producing Farms," Sustainability, MDPI, vol. 12(3), pages 1-18, February.

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