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Total factor productivity in the Lithuanian family farms after accession to the EU: application of the bias-corrected Malmquist indices

The non-parametric measures of efficiency and productivity do not enable to fathom the underlying technology changes in terms of input saving and consumption. However, the bias-corrected Malmquist productivity index offers a remedy to this shortcoming. This paper, thus, employed the bias-corrected Malm-quist productivity index to measurement of the total factor productivity changes in the Lithuanian family farms. The paper employed the Malmquist productivity indices to measure the technical changes (TCs) in terms of input-saving or input- use. Specifically, a sample of 200 family farms was used for the analysis. The research period covered years 2004–2009. The three farming types were considered, namely crop, livestock, and mixed farming. The analysis indicted that crop farming was peculiar with land-using and asset-saving TC, whereas labour-using and intermediate consumption saving TCs were observed only for certain combinations of inputs. As for livestock farms these generally experienced intermediate consumption and asset saving TCs against all the remaining inputs, whereas labour-saving and land-using TC varied with the reference inputs. Finally, mixed farms can be considered as those peculiar with increasing land use and decreasing capital consumption. Labour-using and intermediate consumption saving TCs did also hold for most of the analysed factors. The Lithuanian agricultural sector has not been analysed by the means of the bias-corrected Malmquist indices. Furthermore, there is a gap in the literature on the efficiency and total factor productivity in the Lithuanian farms in general. The present study, therefore, presents insights on the technology change based on non-parametric estimates.


Keywords: Total factor productivity, Bias-corrected Malmquist index, Family farms, Lithuania.


Baležentis, T. 2014. Total factor productivity in the Lithuanian family farms after accession to the EU: application of the bias-corrected Malmquist indices, Empirica, In Journal of European Economics 41(4):731–746. ISSN 0340-8744. DOI 10.1007/s10663-013-9234-y. [Social Science Citation Index, Journal Citation Reports/Social Sciences Edition, SCOPUS, EconLit, Google Scholar, EBSCO, CSA, ProQuest, Academic OneFile, CSA Environmental Sciences, Current Contents / Social & Behavioral Sciences, ECONIS, Gale, Geobase, International Bibliography of Book Reviews (IBR), International Bibliography of Periodical Literature (IBZ), International Bibliography of the Social Sciences (IBSS), OCLC, Research Papers in Economics (RePEc), SCImago, Summon by ProQuest].


DOI 10.1007/s10663-013-9234-y




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