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Subsidies, production structure and technical change – A cross-country comparison

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  • Key, Nigel D.
  • Latruffe, Laure
  • Sauer, Johannes

Abstract

The effect of subsidies on production and technical change of crop farms in France and the United Kingdom (UK) during 1980-2006 is investigated. Subsidies were not neutral on production decisions, in terms of production intensity and type. Crop farms in both countries have experienced technical progress during the period studied, higher in France. Technical progress has favoured labour and chemicals in both countries, land in France, capital in the UK, while it has disfavoured land in the UK and capital in France. Technical change has been slowed down by crop area subsidies but increased by agri-environmental subsidies in both countries.

Suggested Citation

  • Key, Nigel D. & Latruffe, Laure & Sauer, Johannes, 2010. "Subsidies, production structure and technical change – A cross-country comparison," 114th Seminar, April 15-16, 2010, Berlin, Germany 61109, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa114:61109
    DOI: 10.22004/ag.econ.61109
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    References listed on IDEAS

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    1. Morrison Paul, Catherine J. & Sauer, Johannes, 2010. "Distinguishing Different Industry Technologies and Localized Technical Change," 84th Annual Conference, March 29-31, 2010, Edinburgh, Scotland 91749, Agricultural Economics Society.
    2. Sauer, J. & Morrison-Paul, C., 2011. "Technologies and Localized Technical Change," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 46, March.
    3. Brummer, B. & Glauben, T. & Lu, W., 2006. "Policy reform and productivity change in Chinese agriculture: A distance function approach," Journal of Development Economics, Elsevier, vol. 81(1), pages 61-79, October.
    4. Paul, Catherine J. Morrison & Nehring, Richard, 2005. "Product diversification, production systems, and economic performance in U.S. agricultural production," Journal of Econometrics, Elsevier, vol. 126(2), pages 525-548, June.
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    Cited by:

    1. Kassoum Ayouba & Jean-Philippe Boussemart & Stéphane Vigeant, 2017. "The impact of single farm payments on technical inefficiency of French crop farms," Review of Agricultural, Food and Environmental Studies, Springer, vol. 98(1), pages 1-23, July.
    2. Olsen, Jakob Vesterlund & Czekaj, Tomasz Gerard & Henningsen, Arne & Schou, Jesper Sølver, 2017. "The Effect Of Land Fragmentation On Farm Performance: A Comprehensive Farm-Level Study From Denmark," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 260900, European Association of Agricultural Economists.
    3. Zbranek, Peter & Fandel, Peter, 2015. "Development of productivity and its components in Slovak agriculture before and after EU accession: Analysis of the impact of CAP introduction on the performance indicators of Slovak crop and livestoc," 2015 Fourth Congress, June 11-12, 2015, Ancona, Italy 207353, Italian Association of Agricultural and Applied Economics (AIEAA).

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    Keywords

    Agricultural and Food Policy; Farm Management; Land Economics/Use;
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