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Productivity Change Analysis of Polish Dairy Farms After Poland’s Accession to the EU – An Output Growth Decomposition Approach

Author

Listed:
  • Makieła, Kamil
  • Marzec, Jerzy
  • Pisulewski, Andrzej

Abstract

The aim of this study is to assess changes in productivity of Polish dairy farms after Poland’s accession to the EU. In order to do so a new decomposition of output growth is proposed in a stochastic frontier framework. We show how changes in economies of scale can be isolated, which leads to redefined components of output growth and a better measure of productivity growth. The productivity component is now disaggregated to its three generic sources: total scale change, real technical change and efficiency change. The analysis of 1,191 Polish dairy farms between 2004-2011 has revealed that production growth (3.91%) is mostly due to inputs accumulation (3.4%) rather than productivity growth (0.51%.) Further decomposition indicates that productivity component is driven by real technical growth (1%) and changes in scale elasticity, which have had a negative effect on productivity (-0.81%). Technical efficiency growth (0.36%) played a rather minor role.

Suggested Citation

  • Makieła, Kamil & Marzec, Jerzy & Pisulewski, Andrzej, 2016. "Productivity Change Analysis of Polish Dairy Farms After Poland’s Accession to the EU – An Output Growth Decomposition Approach," MPRA Paper 80295, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:80295
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    References listed on IDEAS

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    2. Grigorios Emvalomatis & Spiro E. Stefanou & Alfons Oude Lansink, 2010. "A Reduced-Form Model for Dynamic Efficiency Measurement: Application to Dairy Farms in Germany and The Netherlands," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(1), pages 161-174.
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    4. Rafael Cuesta, 2000. "A Production Model With Firm-Specific Temporal Variation in Technical Inefficiency: With Application to Spanish Dairy Farms," Journal of Productivity Analysis, Springer, vol. 13(2), pages 139-158, March.
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    7. Kamil Makieła, 2014. "Bayesian Stochastic Frontier Analysis of Economic Growth and Productivity Change in the EU, USA, Japan and Switzerland," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 6(3), pages 193-216, September.
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    Cited by:

    1. Kamil Makieła & Błażej Mazur, 2020. "Bayesian Model Averaging and Prior Sensitivity in Stochastic Frontier Analysis," Econometrics, MDPI, vol. 8(2), pages 1-22, April.
    2. Jerzy Marzec & Andrzej Pisulewski & Artur Prędki, 2019. "Efektywność techniczna i produktywność polskich gospodarstw rolnych specjalizujących się w uprawach polowych," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 2, pages 95-125.

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    More about this item

    Keywords

    productivity analysis; Polish dairy farms; output growth decomposition; stochastic frontier analysis; FADN;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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