Total factor productivity and its components for sheep and goat farms in 37 Southern European regions (2004-2012)

Cristina Hidalgo González, Mª Pilar Rodríguez Fernández

Abstract

The decline of Southern Europe’s traditional sheep- and goat-farming systems creates a need for studies on the economic determinants that underlie their production processes. Using data from the FADN, we built a panel of 37 regions from 5 countries over an 8-year period (2004–2012). A Cobb-Douglas was specified and a stochastic frontier production was estimated. Total Factor Productivity (TFP) and its components were calculated. The farms have had sustained, positive development of TFP since 2008, with a significant correlation with the labour factor of production. We detected moderate technical progress change, which was accompanied by decreasing efficiency.


Keywords

Europe, Regional analysis, sheep and goats, Total Factor Productivity.

Subject classification

Q12, C51.

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References

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