[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/blg/reveco/v69y2017i6p8-18.html
   My bibliography  Save this article

Source Of Total Factor Productivity Change: An Empirical Analysis Of Grain Producing Regions In Norway

Author

Listed:
  • Habtamu ALEM

    (Norwegian Institute of Bioeconomy Research)

Abstract
In this article, we estimate the progress of Total Factor Productivity (TFP) in the Norwegian grain production sector. Previous studies conducted in TFP estimation can be criticized for estimated production function relied on the assumption that the underlying technology is the same for all regions and firms face similar environmental conditions. In reality, agricultural firms in different regions resource endowment, adoption of new technology, and innovation might be different because of farmers face different production opportunities. For this study, we classified the country into two main grain producing regions with district level of development, and hence production technologies. We used farm level balanced panel data for 19 years (1996-2014) with 1463 observations from farms specialized in grain production. We applied the ‘true' fixed effect stochastic frontier model to estimate region level efficiency and source of productivity changes. The result of the analysis shows that there has been a productivity improvement in the sector, and technical change has had the main source of productivity change.

Suggested Citation

  • Habtamu ALEM, 2017. "Source Of Total Factor Productivity Change: An Empirical Analysis Of Grain Producing Regions In Norway," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 69(6), pages 8-18, December.
    • Handle: RePEc:blg:reveco:v:69:y:2017:i:6:p:8-18
    as

    Download full text from publisher

    File URL: http://economice.ulbsibiu.ro/revista.economica/archive/69601alem.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alvarez, Antonio & del Corral, Julio & Tauer, Loren W., 2012. "Modeling Unobserved Heterogeneity in New York Dairy Farms: One-Stage versus Two-Stage Models," Agricultural and Resource Economics Review, Cambridge University Press, vol. 41(3), pages 275-285, December.
    2. Battese, George E. & Coelli, Tim J., 1988. "Prediction of firm-level technical efficiencies with a generalized frontier production function and panel data," Journal of Econometrics, Elsevier, vol. 38(3), pages 387-399, July.
    3. Giannis Karagiannis & Peter Midmore & Vangelis Tzouvelekas, 2004. "Parametric Decomposition of Output Growth Using A Stochastic Input Distance Function," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(4), pages 1044-1057.
    4. Laure Latruffe & Sophia Davidova & Kelvin Balcombe, 2008. "Productivity change in Polish agriculture: an illustration of a bootstrapping procedure applied to Malmquist indices," Post-Communist Economies, Taylor & Francis Journals, vol. 20(4), pages 449-460.
    5. Bert Balk, 2001. "Scale Efficiency and Productivity Change," Journal of Productivity Analysis, Springer, vol. 15(3), pages 159-183, May.
    6. Subal kumbhakar & Ana Lozano-Vivas, 2005. "Deregulation and Productivity: The Case of Spanish Banks," Journal of Regulatory Economics, Springer, vol. 27(3), pages 331-351, January.
    7. Lajos Baráth & Imre Fertő, 2017. "Productivity and Convergence in European Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(1), pages 228-248, February.
    8. Bernhard Brümmer & Thomas Glauben & Geert Thijssen, 2002. "Decomposition of Productivity Growth Using Distance Functions: The Case of Dairy Farms in Three European Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 628-644.
    9. Willam Greene, 2005. "Fixed and Random Effects in Stochastic Frontier Models," Journal of Productivity Analysis, Springer, vol. 23(1), pages 7-32, January.
    10. Odeck, James, 2009. "Statistical precision of DEA and Malmquist indices: A bootstrap application to Norwegian grain producers," Omega, Elsevier, vol. 37(5), pages 1007-1017, October.
    11. James Odeck, 2007. "Measuring technical efficiency and productivity growth: a comparison of SFA and DEA on Norwegian grain production data," Applied Economics, Taylor & Francis Journals, vol. 39(20), pages 2617-2630.
    12. Luis Orea & Subal C. Kumbhakar, 2004. "Efficiency measurement using a latent class stochastic frontier model," Empirical Economics, Springer, vol. 29(1), pages 169-183, January.
    13. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
    14. Berndt, Ernst R. & Christensen, Laurits R., 1973. "The translog function and the substitution of equipment, structures, and labor in U.S. manufacturing 1929-68," Journal of Econometrics, Elsevier, vol. 1(1), pages 81-113, March.
    15. Diewert, W E, 1992. "The Measurement of Productivity," Bulletin of Economic Research, Wiley Blackwell, vol. 44(3), pages 163-198, July.
    16. Christopher O’Donnell & D. Rao & George Battese, 2008. "Metafrontier frameworks for the study of firm-level efficiencies and technology ratios," Empirical Economics, Springer, vol. 34(2), pages 231-255, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bingfei Bao & Shengtian Jin & Lilian Li & Kaifeng Duan & Xiaomei Gong, 2021. "Analysis of Green Total Factor Productivity of Grain and Its Dynamic Distribution: Evidence from Poyang Lake Basin, China," Agriculture, MDPI, vol. 12(1), pages 1-16, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:blg:reveco:v:69:y:2017:i:6:p:7-17 is not listed on IDEAS
    2. Habtamu Alem, 2023. "The role of green total factor productivity to farm-level performance: evidence from Norwegian dairy farms," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-16, December.
    3. Mike Tsionas & Marwan Izzeldin & Arne Henningsen & Evaggelos Paravalos, 2022. "Addressing endogeneity when estimating stochastic ray production frontiers: a Bayesian approach," Empirical Economics, Springer, vol. 62(3), pages 1345-1363, March.
    4. Kellermann, Magnus A., 2015. "Total Factor Productivity Decomposition and Unobserved Heterogeneity in Stochastic Frontier Models," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 44(1), pages 1-25, April.
    5. Dakpo, K Hervé & Desjeux, Yann & Jeanneaux, Philippe & Latruffe, Laure, 2016. "Productivity, efficiency and technological change in French agriculture during 2002-2014: A Färe-Primont index decomposition," 149th Seminar, October 27-28, 2016, Rennes, France 244793, European Association of Agricultural Economists.
    6. K Hervé Dakpo & Yann Desjeux & Philippe Jeanneaux & Laure Latruffe, 2017. "Productivity, technical efficiency and technological change in French agriculture during 2002-2014: A Färe-Primont index decomposition," Working Papers SMART 17-07, INRAE UMR SMART.
    7. Habtamu Alem, 2021. "The Role of Technical Efficiency Achieving Sustainable Development: A Dynamic Analysis of Norwegian Dairy Farms," Sustainability, MDPI, vol. 13(4), pages 1-11, February.
    8. Juan Cabas Monje & Bouali Guesmi & Amer Ait Sidhoum & José María Gil, 2023. "Measuring technical efficiency of Spanish pig farming: Quantile stochastic frontier approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(4), pages 688-703, October.
    9. Luz A. Florez & Ligia Alba Melo-Becerra & Carlos Esteban Posada, 2021. "Estimating the reservation wage across city groups in Colombia: A stochastic frontier approach," Borradores de Economia 1163, Banco de la Republica de Colombia.
    10. Barros, Carlos Pestana & Managi, Shunsuke, 2009. "Regulation, pollution and heterogeneity in Japanese steam power generation companies," Energy Policy, Elsevier, vol. 37(8), pages 3109-3114, August.
    11. Chaffai, Mohamed & Coccorese, Paolo, 2019. "How far away is the MENA banking system? Efficiency comparisons with international banks," The North American Journal of Economics and Finance, Elsevier, vol. 49(C), pages 378-395.
    12. Barros, Carlos Pestana & Williams, Jonathan, 2013. "The random parameters stochastic frontier cost function and the effectiveness of public policy: Evidence from bank restructuring in Mexico," International Review of Financial Analysis, Elsevier, vol. 30(C), pages 98-108.
    13. Carlos Pestana Barros & Zhongfei Chen & Peter Wanke, 2016. "Efficiency in Chinese seaports: 2002–2012," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 18(3), pages 295-316, September.
    14. Subal C. Kumbhakar & Christopher F. Parmeter & Valentin Zelenyuk, 2022. "Stochastic Frontier Analysis: Foundations and Advances I," Springer Books, in: Subhash C. Ray & Robert G. Chambers & Subal C. Kumbhakar (ed.), Handbook of Production Economics, chapter 8, pages 331-370, Springer.
    15. Latruffe, Laure & Fogarasi, József & Desjeux, Yann, 2012. "Efficiency, productivity and technology comparison for farms in Central and Western Europe: The case of field crop and dairy farming in Hungary and France," Economic Systems, Elsevier, vol. 36(2), pages 264-278.
    16. Massimiliano Piacenza & Gilberto Turati, 2014. "Does Fiscal Discipline Towards Subnational Governments Affect Citizens' Well‐Being? Evidence On Health," Health Economics, John Wiley & Sons, Ltd., vol. 23(2), pages 199-224, February.
    17. Farsi, Mehdi & Filippini, Massimo, 2009. "An analysis of cost efficiency in Swiss multi-utilities," Energy Economics, Elsevier, vol. 31(2), pages 306-315, March.
    18. Sun, Kai & Kumbhakar, Subal C. & Tveterås, Ragnar, 2015. "Productivity and efficiency estimation: A semiparametric stochastic cost frontier approach," European Journal of Operational Research, Elsevier, vol. 245(1), pages 194-202.
    19. Alexander D. Stead & Phill Wheat & William H. Greene, 2023. "On hypothesis testing in latent class and finite mixture stochastic frontier models, with application to a contaminated normal-half normal model," Journal of Productivity Analysis, Springer, vol. 60(1), pages 37-48, August.
    20. Hailu, Getu & Goddard, Ellen W. & Jeffrey, Scott R., 2005. "Measuring Efficiency in Fruit and Vegetable Marketing Co-operatives with Heterogeneous Technologies in Canada," 2005 Annual meeting, July 24-27, Providence, RI 19507, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    21. Russell D. Kashian & Jeff Pagel, 2016. "Measuring X-Efficiency in NCAA Division III Athletics," Journal of Sports Economics, , vol. 17(6), pages 558-577, August.

    More about this item

    Keywords

    Productivity; Technology; sustainable development; and Region;
    All these keywords.

    JEL classification:

    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:blg:reveco:v:69:y:2017:i:6:p:8-18. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Eduard Alexandru Stoica (email available below). General contact details of provider: https://edirc.repec.org/data/feulbro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.