Heterogeneous technology, scale of land use and technical efficiency : he Case of Hungarian Crop Farms

Baráth, Lajos and Fertő, Imre (2015) Heterogeneous technology, scale of land use and technical efficiency : he Case of Hungarian Crop Farms. Land Use Policy , 42. pp. 141-150. ISSN 0264-8377


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In this paper, we analyse the technical efficiency (TE) of Hungarian crop farms between 2001 and 2009 using conventional stochastic frontier analysis (SFA) and a latent class model (LCM). Our results suggest that technological heterogeneity plays an important role in Hungarian cereal, oilseed and protein (COP) crop producing farms, which are traditionally assumed to use homogeneous technologies. We identify two groups with different technologies using an LCM, and find that the scale of land use is one of the most important factors that differentiates our sample into unique technologies. Our results reveal that in the Hungarian COP sector there is less chance to increase performance through TE improvement than was earlier expected. The estimations also suggest that there is no room to improve productivity by increasing farm size, unless farms switch technologies. Consequently, agricultural policies for increasing productivity should concentrate on technological progress. © 2014.

Item Type: Article
Uncontrolled Keywords: Hungary; stochasticity; PRODUCTIVITY; numerical model; land use planning; cropping practice; crop production; Agricultural policy; agricultural modeling; Technological heterogeneity; Technical efficiency; Scale of land use; Latent class model; Crop farm
Subjects: H Social Sciences / társadalomtudományok > HC Economic History and Conditions / gazdaság története és alapelvek > HC2 Economic policy / gazdaságpolitika
S Agriculture / mezőgazdaság > S1 Agriculture (General) / mezőgazdaság általában
Depositing User: MTMT SWORD
Date Deposited: 07 Mar 2016 10:19
Last Modified: 07 Mar 2016 10:19

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