The Comparative Efficiency Analysis of EU Members Agriculture Sectors

Abstract

Abstract. Production economics forms a very important part of an enormous range of economic theory. Agricultural production is no exception. When evaluating the competitiveness of the multifunctional agriculture, it is necessary to use the measure of efficiency instead of productivity. The conception of the efficiency is explained and the methods for measurement are provided. The authors discuss the methods of Stochastic Frontier Approach (SFA), Free Disposal Hull (FDH) and Data Envelopment Analysis (DEA) that are particularly useful for multi-criterial evaluation of multifunctional processes. Those methods assign an efficiency score to each Decision Making Unit (DMU) based on how well it transforms a given set of inputs into outputs. Most studies have only focused on application of DEA method for assesment of the efficiency of agriculture farms. There is still a need on applications for sectors. This paper provides an examination of the applicability of DEA method to agriculture sectors efficiency measurement. By applying mathematical models, which are based on the DEA, the efficiency of agriculture in each EU country was evaluated.

A Non-Parametric Analysis of Technical Efficiency in Bulgarian Farms Using the Fadn Dataset

“…The value of technical efficiency close to the optimal threshold but above the best value equal to 1, has also corroborated other outcomes of technical efficiency assessed in new member states by previous studies with significant decreases in 2010 and 2011, respectively equal to 0.88 and 0.93, with a transition from an efficient phase to an inefficient one (Bojnec et al, 2014;Kočišová, 2015). In any case, technical efficiency assessed in Bulgarian farms part of the FADN dataset has been above the average value estimated in all 27 European countries in recent analysis by other scholars (Nowak et al, 2015;Laurinavičius and Rimkuvienė, 2017).…”

Employment for Sustainable Development: Sectoral Efficiencies in EU Countries

“…Djordjević et al (2018) employed a non-radial DEA model for an evaluation of railway efficiency of European countries regarding a level of safety at railway level crossings. Laurinavičius and Rimkuvienė (2017) using DEA provided results on the analysis of agricultural sectors efficiency of 28 EU member states (for 2010-2014). According to their results the agriculture sector of the "new" EU countries is still poorly effective, even though the efficiency tends to increase.…”

Technical Efficiency in the Agricultural Business—The Case of Slovakia

“…Since Charnes, Cooper, and Rhodes [17] have created the non-parametric technique of data envelopment analysis, there are many studies and papers trying to evaluate the efficiency and productivity in the various fields of the economy, including agricultural holdings [18][19][20][21][22][23] or holdings in the food industry [24]. Since 1978 up through the year 2009, around 4500 Data Envelopment Analysis (DEA) related papers, both theoretically and practically oriented, have been published in the ISI Web of Science database [25].…”