IDEAS home Printed from https://ideas.repec.org/a/spd/journl/v69y2019i4p3-20.html
   My bibliography  Save this article

Regional Productivity and Efficiency Growth in Greek Agriculture

Author

Listed:
  • Ioanna Reziti

    (Center of Planning and Economic Research (KEPE), Athens, Greece.)

  • Leonidas Zangelidis

    (National and Kapodistrian University of Athens, KEPE Intern)

Abstract

In this paper, for the first time, we apply the Fare-Primont productivity index (FPI) to examine the agricultural total factor productivity (TFP), during the period 2004–2016, in four regions of Greece: Macedonia and Thrace (region I), Epirus, Peloponnesus and the Ionian Islands (region II), Thessaly (region III) and Central Greece, the Aegean Islands and Crete (region IV). The FPI is further decomposed into measures of technical change, technical efficiency change, scale and mix efficiency change, residual scale efficiency change and residual mix efficiency change. The results show that TFP has declined for all regions except region II. In region IV, the TFP decrease is due to the deterioration of scale and mix efficiency. In region III, the main factor for the TFP decrease is technical regression. In region I, both technical regression and the deterioration of scale and mix efficiency affect the TFP fall. Region IV experienced the highest decline in TFP mainly due to the large decrease of scale and mix efficiency. Policy implications should try to improve scale and mix efficiency by reallocating resources optimally, especially in regions I and IV. However, the need for increased investment in R&D is unquestionable as it would improve technical change.

Suggested Citation

  • Ioanna Reziti & Leonidas Zangelidis, 2019. "Regional Productivity and Efficiency Growth in Greek Agriculture," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 69(4), pages 3-20, October-D.
    • Handle: RePEc:spd:journl:v:69:y:2019:i:4:p:3-20
    as

    Download full text from publisher

    File URL: https://spoudai.unipi.gr/index.php/spoudai/article/download/2753/2691/2753-3556-1-SM
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sanzidur Rahman & Ruhul Salim, 2013. "Six Decades of Total Factor Productivity Change and Sources of Growth in Bangladesh Agriculture (1948–2008)," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(2), pages 275-294, June.
    2. Lajos Baráth & Imre Fertő, 2017. "Productivity and Convergence in European Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(1), pages 228-248, February.
    3. Tim J. Coelli & D. S. Prasada Rao, 2005. "Total factor productivity growth in agriculture: a Malmquist index analysis of 93 countries, 1980–2000," Agricultural Economics, International Association of Agricultural Economists, vol. 32(s1), pages 115-134, January.
    4. Laurenceson, James & O'Donnell, Christopher, 2014. "New estimates and a decomposition of provincial productivity change in China," China Economic Review, Elsevier, vol. 30(C), pages 86-97.
    5. Tozer, Peter R. & Villano, Renato, 2013. "Decomposing Productivity and Efficiency among Western Australian Grain Producers," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(3), pages 1-15.
    6. Nazrul Islam & Vilaphonh Xayavong & Ross Kingwell, 2014. "Broadacre farm productivity and profitability in south-western Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(2), pages 147-170, April.
    7. Kostas Karantininis, 2017. "A New Paradigm for Greek Agriculture," Springer Books, Springer, number 978-3-319-59075-2, June.
    8. Farid Khan & Ruhul Salim & Harry Bloch, 2015. "Nonparametric estimates of productivity and efficiency change in Australian Broadacre Agriculture," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(3), pages 393-411, July.
    9. Laure Latruffe & Sophia Davidova & Kelvin Balcombe, 2008. "Application of a double bootstrap to investigation of determinants of technical efficiency of farms in Central Europe," Journal of Productivity Analysis, Springer, vol. 29(2), pages 183-191, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kyrgiakos, Leonidas Sotirios & Kleftodimos, Georgios & Kremantzis, Marios Dominikos & Vlontzos, George & Pardalos, Panos M., 2023. "Assessing efficiency differences in a common Agriculture Decision Support System - A comparative analysis between Greek and Italian durum wheat farms," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 14(01), January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. K Hervé Dakpo & Yann Desjeux & Philippe Jeanneaux & Laure Latruffe, 2017. "Productivity, technical efficiency and technological change in French agriculture during 2002-2014: A Färe-Primont index decomposition," Working Papers SMART 17-07, INRAE UMR SMART.
    2. Reziti, Ioanna, 2019. "Total factor productivity change of agriculture in five Southern European countries," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 0(Issue 2).
    3. Dakpo, K Hervé & Desjeux, Yann & Jeanneaux, Philippe & Latruffe, Laure, 2016. "Productivity, efficiency and technological change in French agriculture during 2002-2014: A Färe-Primont index decomposition," 149th Seminar, October 27-28, 2016, Rennes, France 244793, European Association of Agricultural Economists.
    4. Hu, Yue & Liu, Chang & Peng, Jiangang, 2021. "Financial inclusion and agricultural total factor productivity growth in China," Economic Modelling, Elsevier, vol. 96(C), pages 68-82.
    5. María Molinos-Senante & Alexandros Maziotis & Ramon Sala-Garrido, 2017. "Assessment of the Total Factor Productivity Change in the English and Welsh Water Industry: a Färe-Primont Productivity Index Approach," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 31(8), pages 2389-2405, June.
    6. Viet Nguyen, Thanh & Simioni, Michel & Le Van, Dao, 2019. "Assessment of TFP change at provincial level in Vietnam: New evidence using Färe–Primont productivity index," Economic Analysis and Policy, Elsevier, vol. 64(C), pages 329-345.
    7. Majiwa, Eucabeth Bosibori Opande & Lee, Boon & Wilson, Clevo, 2015. "Multi-lateral multi-output measurement of productivity: the case of African agriculture," 2015 Conference, August 9-14, 2015, Milan, Italy 212769, International Association of Agricultural Economists.
    8. Dakpo, K Herve & Jeanneaux, Philippe & Latruffe, Laure & Mosnier, Claire & Veysset, Patrick, 2018. "Three decades of productivity change in French beef production: a F€are-Primont index decomposition," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 62(3), July.
    9. K Hervé Dakpo & Philippe Jeanneaux & Laure Latruffe & Claire Mosnier & Patrick Veysset, 2018. "Three decades of productivity change in French beef production: a Färe‐Primont index decomposition," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 62(3), pages 352-372, July.
    10. S. C. West & A. W. Mugera & R. S. Kingwell, 2022. "The choice of efficiency benchmarking metric in evaluating firm productivity and viability," Journal of Productivity Analysis, Springer, vol. 57(2), pages 193-211, April.
    11. Asif Reza Anik & Sanzidur Rahman & Jaba Rani Sarker, 2020. "Five Decades of Productivity and Efficiency Changes in World Agriculture (1969–2013)," Agriculture, MDPI, vol. 10(6), pages 1-20, June.
    12. Bright O. Asante & Renato A. Villano & Omphile Temoso, 2024. "Drivers of integrated crop–livestock farming system’s efficiency for smallholder farmers in the forest-savanna transition agro-ecological zone of Ghana," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(11), pages 29429-29451, November.
    13. Tomas Baležentis, 2014. "Total factor productivity in the Lithuanian family farms after accession to the EU: application of the bias-corrected Malmquist indices," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(4), pages 731-746, November.
    14. Spyros Niavis & George Vlontzos, 2019. "Seeking for Convergence in the Agricultural Sector Performance under the Changes of Uruguay Round and 1992 CAP Reform," Sustainability, MDPI, vol. 11(15), pages 1-13, July.
    15. Temoso, Omphile & Villano, Renato & Hadley, David, 2015. "Agricultural productivity, efficiency and growth in a semi-arid country: a case study of Botswana," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 10(3), pages 1-15, September.
    16. Jianxu Liu & Changrui Dong & Shutong Liu & Sanzidur Rahman & Songsak Sriboonchitta, 2020. "Sources of Total-Factor Productivity and Efficiency Changes in China’s Agriculture," Agriculture, MDPI, vol. 10(7), pages 1-18, July.
    17. Łukasz Kryszak & Thomas Herzfeld, 2021. "One or many European models of agriculture? How heterogeneity influences income creation among farms in the European Union," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(11), pages 445-456.
    18. Stefan Wimmer & K Hervé Dakpo, 2023. "Components of agricultural productivity change: Replication of US evidence and extension to the EU," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(3), pages 1332-1355, September.
    19. Chancellor, Will & Hughes, Neal & Zhao, Shiji & Soh, Wei Ying & Valle, Haydn & Boult, Christopher, 2021. "Controlling for the effects of climate on total factor productivity: A case study of Australian farms," Food Policy, Elsevier, vol. 102(C).
    20. Anna NOWAK & Tomasz KIJEK & Katarzyna DOMAŃSKA, 2015. "Technical efficiency and its determinants in the European Union," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 61(6), pages 275-283.

    More about this item

    Keywords

    Greece; Fare-Primont Index; Total Factor Productivity; Technical Efficiency; Scale and Mix Efficiency;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spd:journl:v:69:y:2019:i:4:p:3-20. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SPOUDAI Journal of Economics and Business (email available below). General contact details of provider: https://edirc.repec.org/data/depirgr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.