Convergence in labour productivity in agriculture : a comparison study

Abstract

Purpose: The article compares the processes of convergence and divergence in labour productivity in the agricultural sector of the EU candidates (CCs), the Eastern Partnership countries (EPCs) and the EU member-states. Design/Methodology/Approach: The analysis includes calculations of the convergence indicators and additionally dynamics and mean annual rate of variation. Findings: The study attempts to illustrate whether we are dealing with convergence or divergence processes in terms of labor productivity both among CCs and EPCs as well as CCs, EPCs and EU countries. As shown by the calculated convergence indicators during the period under study the agricultural sector of the CCs and the EPCs was slowly adapting to labour productivity in the EU-28. However, simultaneously there was divergence among the CCs and the EPCs in the indicator under study. The research revealed that changes in this indicator were influenced both by the increase in gross value added and reduction of employment in the agricultural sector. Practical Implications: The study of the convergence process in labour productivity using statistical methods is an important element in testing economic theories in the field of convergence research in the CCs and EPCs and it shows which countries may become competitive in the future in the EU market. Originality/Value: Showing the importance of convergence process in labour productivity in the CCs and EPCs with the EU we can observe its impact on the future integration process of the CCs and EPCs. The results of the research are important from the point of view of the contribution to the economy of European integration, both in theoretical and empirical terms, but above all in the field of sectoral policy, which is the Common Agricultural Policy (CAP). A comprehensive approach to the subject of research and its multidirectional nature, as well as the obtained results will be important both for the agricultural policy of the studied countries, as well as for the CAP and for the Polish agriculture.