Is the collapse of agricultural output in the CEECs a good indicator of economic performance? A total factor productivity analysis
Tonini, A. ; Jongeneel, R.A. - \ 2006
Eastern European Economics 44 (2006)4. - ISSN 0012-8775 - p. 32 - 59.
eastern-europe - technological-progress - production frontiers - efficiency change - index numbers - transition - countries - hungary - growth
This paper analyzes total factor productivity (TFP) growth in agriculture for the ten Central and East European countries (CEECs) that began formal negotiations for EU accession in September 1998. A panel data set is constructed consisting of pooled time series data for the ten CEECs from 1993 to 2002, and it is used to estimate a time-varying stochastic production frontier. A Malmquist index of TFP growth is estimated and decomposed into efficiency change and technical change. The results show that despite the fall in output, TFP growth rates were positive for all ten CEECs. This suggests that the collapse of agricultural output in the CEECs is not necessarily a good indicator of agricultural performance. An analysis that only focuses on output decline provides a partial and misleading interpretation of the success of agricultural reforms. Also, estimates of technical efficiency confirm the hypothesis that large-scale farming performs better than small-scale farming when markets are missing and economic conditions are uncertain.
Shadow Price Approach to Total Factor Productivity Measurement: With an Application to Finnish Grass-Silage Production
Kuosmanen, T.K. ; Post, T. ; Sipiläinen, T. - \ 2004
Journal of Productivity Analysis 22 (2004)1-2. - ISSN 0895-562X - p. 95 - 121.
fisher ideal indexes - industrialized countries - technical progress - efficiency change - growth - numbers
This paper explores an intermediate route between the Fisher and the Malmquist productivity indexes so as to minimize data requirements and assumptions about economic behavior of production units and their production technology. Assuming quantity data of inputs and outputs and the behavioral hypothesis of allocative efficiency, we calculate the exact value of the Fisher ideal productivity index using implicit shadow prices revealed by the choice of input-output mix. The approach is operationalized by means of a nonparametric data envelopment analysis (DEA) model. Empirical application to Finnish grass silage farms suggests that the Malmquist and the Fisher productivity indices yield similar results when averaged over firms, but there can be major differences in the results of the two approaches at the level of individual firms.