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Productivity surplus and its distribution in Lithuanian agriculture



This paper applies the Bennet total factor productivity (TFP) indicator and the economic surplus methodology to identify the stakeholders who generate or consume the gains from the productivity growth. The case of Lithuania is considered. The period covered is 2001–2020. The annual TFP growth of 2.3% is observed. The results confirm price advantages for consumers, whereas the price disadvantages were faced by the suppliers of the intermediate inputs to Lithuanian agricultural sector. The dynamics in the price advantages remained rather stable following year 2006 that relates to full-fledged integration into the European market. The asymmetry in price advantage dynamics exists with regards to the direction of the TFP growth. The effectiveness of the public policy measures could be further improved from the viewpoint of the consumer price advantages amounting to 49% of the economic surplus generated in the Lithuanian agricultural sector.


Keywords: Total factor productivity; Bennet indicator; Economic surplus; Factor income.


Baležentis, T.; Šapolaitė, V. 2022. Productivity surplus and its distribution in Lithuanian agriculture. Empirica : Springer. ISSN 0340-8744. eISSN 1573-6911. 2022, 49, 3, p. 721-740. DOI: 10.1007/s10663-022-09544-x. [Scopus; Social Sciences Citation Index (Web of Science)].


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