Abstract
This paper examines the association between controls of corruption and the agricultural production efficiency of 23 European Union Member States during the recent economic crisis. Production efficiency, measured in terms of technical efficiency, is the effectiveness of a given set of inputs that is used to produce an output. Owing to climate and geographical location agriculture in European countries is diverse. The economic downturn led by the financial crisis which started in mid-2007, is still prevailing across European countries. Control of corruption along with the existing economic crisis of the member states are affecting agriculture production efficiency. This study used the national level production data for the period of 2003-2009. It shows that the technical efficiency of most Member States have declined over the years and that it was significantly lower in austere economic crisis time 2007-09 than 2003-06 for all countries. It is also found that the declining trend of technical efficiency is significantly lower for central and eastern European countries than for the western European countries. Study finds that the control of corruption in the presence of high government effectiveness, decreases the technical efficiency of agricultural production in the Member States.Res. Agric., Livest. Fish.2(3): 427-437, December 2015
Highlights
Production efficiency, measured in terms of technical efficiency, is the effectiveness of a given set of inputs that is used to produce an output
Our aim is to measure how technical efficiency of agriculture is affected by the control of corruption in the presence of government effectiveness in this period of economic crisis especially in 2003-09 and which part of Europe is being challenged by this declining technical efficiency
We calculated the technical efficiency of the 23 European Union (EU) Member States for the period 2003-2009, and we analyzed the association of corruption and governance with technical efficiency for this specified period
Summary
Production efficiency, measured in terms of technical efficiency, is the effectiveness of a given set of inputs that is used to produce an output. Some European countries are restricting agricultural production due to market adjustment while some others are trying to produce as much as they can. The economic crisis that started in 2007, and is still ongoing, is spread across Europe and is going to impact the agricultural sector a lot. There is an unclear impact on the overall economy including agricultural production in both the short and the long term. Our aim is to measure how technical efficiency of agriculture is affected by the control of corruption in the presence of government effectiveness in this period of economic crisis especially in 2003-09 and which part of Europe is being challenged by this declining technical efficiency
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