AGRICULTURAL TOTAL FACTOR PRODUCTIVITY CHANGES IN THE NEW AND THE OLD EUROPEAN UNION MEMBERS

Abstract

The aim of this study was the evaluation of agricultural total factor productivity changes between new member countries which have acceded to EU after 2004 and so-called ‘old 15’ EU members. The analysis covered the years 2007–2013. The study is based on Malmquist productivity index divided into technological change and changes in technical efficiency. The results showed a slight increase in the agricultural total factor productivity in the EU countries in the years 2007–2013 (0.1 %, which mainly resulted from a slight increase in technical efficiency in agriculture(0.4 % ), while at the same time adverse technological changes. Among all the countries of the ‘old 15’, only Denmark, the Netherlands, Finland, United Kingdom and Sweden reported increased index of productivity. In the group of countries that joined the EU after 2004, the total productivity growth took place in such countries as Bulgaria, Cyprus, Czech Republic, Malta, Slovakia and Hungary. The reason for this increase was primarily changes in technical efficiency.

Keywords: agricultural productivity, European Union, Malmquist index, Total Factor Productivity (TFP), technological change.

Article DOI: http://doi.org/10.15544/RD.2015.084