Growth in Agricultural Productivity

Abstract

This study examines agricultural total factor productivity (TFP) from theoretical and empirical perspectives. Specifically, the measures, relevant data, and major sources of the TFP growth are discussed. Using the sector-level growth and productivity data from the EU KLEMS, EUROSTAT, FAOSTAT, and USDA databases, the TFP growth in the EU countries over 1996–2019 is considered. The sources of the TFP growth are analyzed. The results suggest that agricultural TFP increased in almost all EU countries over the period covered. TFP growth appears as an important component of labour productivity and value-added growth in the EU agriculture. The differences among the databases considered are noted in the sense of input and output levels and TFP growth rates.