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Decomposition of Olive Oil Production Growth into Productivity and Size Effects : A Frontier Production Function Approach

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  • Vangelis Tzouvelekas
  • Peter Midmore
  • Konstantinos Giannakas
  • Konstantinos Mattas

Abstract

This paper investigates the relative contribution of technical efficiency, technological change and increased input use to the output growth of the Greek oliveoil sector using a stochastic frontier production function approach applied to panel data. A flexible translog functional form is used to represent the underlying production technology and maximum likelihood procedure is implemented to estimate a single time trend model. Empirical results show that the overall efficiency of olive-growing farms in Greece remained stable during the period 1987-1993, while an inquiry into the sources of production growth shows that the contribution of conventional inputs was the main source of that growth, since total factor productivity increased in a slow rate during the study period.

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  • Vangelis Tzouvelekas & Peter Midmore & Konstantinos Giannakas & Konstantinos Mattas, 1999. "Decomposition of Olive Oil Production Growth into Productivity and Size Effects : A Frontier Production Function Approach," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 51, pages 5-21.
    • Handle: RePEc:rae:jouces:v:51:y:1999:p:5-21
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    1. Tzouvelekas, Vangelis & Giannakas, Konstantinos & Karagiannis, Giannis, 1998. "Efficiency, Productivity And Output Growth: An Inter-Regional Analysis Of Greek Agriculture," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20936, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Kashiwagi, Kenichi & Mtimet, Nadhem & Zaibet, Lokman & Nagaki, Masakazu, 2010. "Technical efficiency of olive oil manufacturing and efficacy of modernization programme in Tunisia," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96195, African Association of Agricultural Economists (AAAE).
    3. Kashiwagi, Kenichi, 2017. "Technical Efficiency of Olive-growing Farms in the Northern West Bank of Palestine," Sustainable Agriculture Research, Canadian Center of Science and Education, vol. 6(2), May.

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