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The Sources of the Total Factor Productivity Growth in Lithuanian Family Farms: A Färe-Primont Index Approach

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  • Tomas Baležentis
Abstract
The Lithuanian agricultural sector still features the processes of land reform, farm structure development, and modernisation. Accordingly, there is a need to utilise the benchmarking techniques in order to fathom the underlying trends and sources of efficiency and productivity. This paper therefore aims at analysing the productive efficiency and the total factor productivity in the Lithuanian family farms. The research is based on the Farm Accountancy Network Data covering the period of 2004-2009. The Färe-Primont Indices were employed to estimate and decompose the total factor productivity changes. Furthermore, the stochastic kernels were applied to analyse the distributions of the efficiency scores along with the econometric analysis which aimed at revealing the relationships of the environmental variables and the efficiency scores. The results do indicate that the technical efficiency was a decisive factor causing decrease in TFP efficiency for crop and mixed farms. Meanwhile, the scale efficiency constituted a serious problem for mixed farms. Indeed, these farms were the smallest ones if compared to the remaining farming types. Finally, the mix efficiency was low for all farming types indicating the need for implementation of certain farming practices allowing for optimisation of the input-mix.

Suggested Citation

  • Tomas Baležentis, 2015. "The Sources of the Total Factor Productivity Growth in Lithuanian Family Farms: A Färe-Primont Index Approach," Prague Economic Papers, Prague University of Economics and Business, vol. 2015(2), pages 225-241.
    • Handle: RePEc:prg:jnlpep:v:2015:y:2015:i:2:id:510:p:225-241
    DOI: 10.18267/j.pep.510
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    Cited by:

    1. 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.
    2. Ahmed, Osama & Abdel-Salam, Sameh & Rungsuriyawiboon, Supawat, 2020. "Measuring the economic performance of mixed crop-livestock farming systems in Egypt: A non-parametric DEA approach," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 19(2), pages 133-145.
    3. Hu, Yue & Liu, Chang & Peng, Jiangang, 2021. "Financial inclusion and agricultural total factor productivity growth in China," Economic Modelling, Elsevier, vol. 96(C), pages 68-82.
    4. Viet Nguyen, Thanh & Simioni, Michel & Le Van, Dao, 2019. "Assessment of TFP change at provincial level in Vietnam: New evidence using Färe–Primont productivity index," Economic Analysis and Policy, Elsevier, vol. 64(C), pages 329-345.
    5. Beadle, Brian, 2023. "The design and application of an agricultural sustainability index using item response theory," EconStor Theses, ZBW - Leibniz Information Centre for Economics, number 278112, September.
    6. Reziti, Ioanna, 2019. "Total factor productivity change of agriculture in five Southern European countries," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 0(Issue 2).
    7. María Molinos-Senante & Alexandros Maziotis & Ramon Sala-Garrido, 2017. "Assessment of the Total Factor Productivity Change in the English and Welsh Water Industry: a Färe-Primont Productivity Index Approach," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 31(8), pages 2389-2405, June.
    8. Świtłyk, Michał, 2021. "Using the Färe-Primont Index to Measure Changes in Total Factor Productivity of Dairy Farms," Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej 319786, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
    9. Dakpo, K Hervé & Desjeux, Yann & Jeanneaux, Philippe & Latruffe , Laure, 2017. "Productivity, technical efficiency and technological change in French agriculture during 2002-2014: A Färe-Primont index decomposition," Working Papers 263010, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).

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    More about this item

    Keywords

    total factor productivity; data envelopment analysis; Färe-Primont indices; family farms;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • 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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