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Dynamics of the total factor productivity in Lithuanian family farms: frontier measures

Abstract. This paper analyses the total factor productivity in the Lithuanian agricultural sector, namely family farms reporting to the Farm Accountancy Data Network. More specifically, the Malmquist productivity index and data envelopment analysis are employed to analyze productivity changes and thus define respective policy implications. The research covers the period of 2003–2009. The four output indicators were employed for DEA, namely land productivity, labour productivity, return on assets, and intermediate consumption productivity. The analysis showed that the total factor productivity in the Lithuanian family farms had been decreasing throughout 2004–2005, and has been recovering by 1.3–8.1 per cent annually. However, technical change contributed to the increase in the total factor productivity rather insignificantly.


Keywords: total factor productivity, Malmquist productivity index, DEA, Lithuania, agriculture.


JEL Classification: C44, C61, Q10.


Baležentis, T.; Kriščiukaitienė, I.; Baležentis, A. Dynamics of the Total Factor Productivity in Lithuanian Family Farms: Frontier Measures. Economic Computation and Economic Cybernetics Studies and Research, 2012, 46(4), p. 201–212. Online ISSN 1842–3264, print ISSN 0424–267X. ISSN 0585-7511 [Science Citation Index Expanded, Social Sciences Citation Index®, Social Scisearch®, Journal Citation Reports/Social Sciences Edition, SCOPUS].


H Index: 4


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Dynamics of the total factor productivity in Lithuanian family farms: frontier measures

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