Productivity Change Analysis of Polish Dairy Farms After Poland’s Accession to the EU – An Output Growth Decomposition Approach

Makieła, Kamil and Marzec, Jerzy and Pisulewski, Andrzej (2016): Productivity Change Analysis of Polish Dairy Farms After Poland’s Accession to the EU – An Output Growth Decomposition Approach.

Abstract

The aim of this study is to assess changes in productivity of Polish dairy farms after Poland’s accession to the EU. In order to do so a new decomposition of output growth is proposed in a stochastic frontier framework. We show how changes in economies of scale can be isolated, which leads to redefined components of output growth and a better measure of productivity growth. The productivity component is now disaggregated to its three generic sources: total scale change, real technical change and efficiency change. The analysis of 1,191 Polish dairy farms between 2004-2011 has revealed that production growth (3.91%) is mostly due to inputs accumulation (3.4%) rather than productivity growth (0.51%.) Further decomposition indicates that productivity component is driven by real technical growth (1%) and changes in scale elasticity, which have had a negative effect on productivity (-0.81%). Technical efficiency growth (0.36%) played a rather minor role.

• Item Type: MPRA Paper
• Language: English
• Keywords: productivity analysis, Polish dairy farms, output growth decomposition, stochastic frontier analysis, FADN
• Subjects: C - Mathematical and Quantitative Methods > C0 - General > C01 - Econometrics; C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C11 - Bayesian Analysis: General; D - Microeconomics > D2 - Production and Organizations > D24 - Production ; Cost ; Capital ; Capital, Total Factor, and Multifactor Productivity ; Capacity; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q12 - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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