Changes in agricultural productivity in new and old member states of the European Union

Abstract

Purpose: This paper aimed at evaluating changes in agricultural productivity in the group of new (NMS) and old (OMS) member states of the European Union. Design/Methodology/Approach: The analysis covered the years 2007-2016. The calculations made use of unit data from farms participating in FADN (Farm Accountancy Data Network). Surveys were carried out based on the Malmquist productivity index and partial indicators of land, workforce and capital productivity. Findings: The outcome pointed to increased total productivity of agriculture in NMS (9.5%), resulting from positive technological changes and improvement in technical efficiency. A small decrease in productivity was noted in a group of EU-15 countries, which was due to a decrease in technical efficiency. Despite the growth in total productivity, the value of partial productivity indicators in NMS remained at a much lower level than in OMS. Practical Implications: Identification of the determinants of growth in agricultural productivity is the precondition to make up differences occurring between member states in this respect. Originality/Value: This study contributes to reference literature concerning productivity of agriculture for a number of reasons. First, the scope of the survey is extensive, as it covers a group of 27 EU member states split into new and old members. The second aspect of the survey is taking into account both changes in total factor productivity and in productivity of respective production factors. Thirdly, the Malmquist index adopted for the needs of the survey made it possible to identify the sources of change in total factor productivity.