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Competitiveness and resilience dynamics in the Italian olive sector: An in-depth analysis

Author

Listed:
  • Lambarraa-Lehnhardt, Fatima
  • Rosati, Adolfo
  • Hasnain, Syeda Aleena
  • Turchetti, Luca

Abstract

This paper investigates the interaction among potential and revealed resilience capacities, technical efficiency, and total factor productivity (TFP) in Italian olive farms using FADN data from 2013-2019. To achieve this objective, we use principal component analysis for evaluating potential resilience indicators and a stochastic frontier model (SFM) to assess farms' competitiveness and evaluate the impact of resilience measures on farms' efficiency and productivity. Results show that Italian olive farms exhibit higher resilience in transformability, followed by robustness and adaptability. Resilience indicators negatively impact technical efficiency. TFP growth is notably influenced by adaptability. Results suggest that balancing competitiveness and resilience is crucial to achieving a sustainable farming system. To face climate change challenges, policies should facilitate transitions to a climate-resilient farming system by incentivizing investments in climate adaptive technologies and designing careful subsidy programs that emphasize the long-term resilience benefits of sustainable farming practices rather than considering immediate efficiency gains. Farmer support through training and collaborative networks is vital to strengthening farms' adaptability and transformability capacities.

Suggested Citation

  • Lambarraa-Lehnhardt, Fatima & Rosati, Adolfo & Hasnain, Syeda Aleena & Turchetti, Luca, 2024. "Competitiveness and resilience dynamics in the Italian olive sector: An in-depth analysis," IAAE 2024 Conference, August 2-7, 2024, New Delhi, India 344256, International Association of Agricultural Economists (IAAE).
    • Handle: RePEc:ags:cfcp15:344256
    DOI: 10.22004/ag.econ.344256
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