IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v47y2015i12p1230-1247.html
   My bibliography  Save this article

The impact of trade openness on technical efficiency in the agricultural sector of the European Union

Author

Listed:
  • Jarrett Hart
  • Dragan Miljkovic
  • Saleem Shaik

Abstract

The aim of this study is to analyse the impact of trade openness on technical efficiency of the European Union's (EU) agricultural sector. There are no systematic theories linking trade policy to technical efficiency; hence, the relation between trade liberalization and technical efficiency is fundamentally ambiguous. Stochastic frontier analysis is used to model the relationship between EU's production resources and agricultural output, as well as the importance of trade openness on technical efficiency of a country. The data for 16 of the 28 EU members were available for the period 1980-2007 including land, capital, fertilizer, labour, agricultural GDP, foreign direct investments (FDI), exports and import data. Results indicate that trade openness has an immediate, negative impact on efficiency in the EU agricultural sector. Over time, however, trade openness does increase efficiency. The FDI outflows increase efficiency. This suggests that an initial reduction in capital supply forces EU nations to utilize other factor inputs more efficiently. However, there is the unexamined potential that over time the depletion of capital results in a decrease in efficiency. Finally, formerly communist member-countries of the EU are found to have the lowest technical efficiency scores whereas Southern European nations have the highest efficiency.

Suggested Citation

  • Jarrett Hart & Dragan Miljkovic & Saleem Shaik, 2015. "The impact of trade openness on technical efficiency in the agricultural sector of the European Union," Applied Economics, Taylor & Francis Journals, vol. 47(12), pages 1230-1247, March.
    • Handle: RePEc:taf:applec:v:47:y:2015:i:12:p:1230-1247
    DOI: 10.1080/00036846.2014.993134
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00036846.2014.993134
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036846.2014.993134?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Hussein Al-Zyoud & Asheref Illiyan & Vasim Akram, 2022. "Impact of Economic Openness on Macro Technical Efficiency in South Asia," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 28(3), pages 91-103, November.
    2. Wirat Krasachat & Suthathip Yaisawarng, 2021. "Directional Distance Function Technical Efficiency of Chili Production in Thailand," Sustainability, MDPI, vol. 13(2), pages 1-18, January.
    3. Yury Dranev & Maxim Kotsemir & Boris Syomin, 2018. "Diversity of research publications: relation to agricultural productivity and possible implications for STI policy," Scientometrics, Springer;Akadémiai Kiadó, vol. 116(3), pages 1565-1587, September.
    4. Hart, Jarret, 2013. "Impact of Trade Openness on Technical Efficiency: Agricultural Sector of the European Union," 2013: Employment, Immigration and Trade, December 15-17, 2013, Clearwater Beach, Florida 182500, International Agricultural Trade Research Consortium.
    5. 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.
    6. 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.
    7. Hakimah Nur Ahmad Hamidi & Norlin Khalid & Zulkefly Abdul Karim & Muhamad Rias K. V. Zainuddin, 2022. "Technical Efficiency and Export Potential of the World Palm Oil Market," Agriculture, MDPI, vol. 12(11), pages 1-16, November.
    8. Enerelt Murakami, 2013. "Efficiency and productivity of the Mongolian livestock sector in an open economy," Economics Bulletin, AccessEcon, vol. 33(4), pages 2617-2626.
    9. Yohanes Andika Tjitrajaya & Charvin Lim & Shafiah Meike Serepina Pasaribu & Ferensky Regina Sandjaja & Ivantia Savitri Mokoginta, 2021. "The importance of economic openness on technical efficiency in global perspective," International Journal of Economic Policy Studies, Springer, vol. 15(2), pages 387-403, September.

    More about this item

    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:taf:applec:v:47:y:2015:i:12:p:1230-1247. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    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.