Long-term productivity growth and sustainability of Greek irrigated agriculture

Abstract

The present study examines the long-term productivity growth and sustainability of Greek irrigated agriculture. A log linear trend model was used to measure long-term productivity growth, and the total factor productivity (TFP) approach measures the sustainability of the irrigated production system. A time series database of inputs and outputs data were used for the production period of 1961 – 2001 (41 years) which revealed that there is an increasing trend in the irrigated area of the country. The annual growth rate of the irrigated area is 2.6% during this time period. The long-term trends in yields of crops grown in irrigated agriculture are positive. Fertilizer use rate per ha sharply increases during this period. The productivity of irrigated Greek agriculture also increases over the time period as a result of the introduction of High Yielding Variety (HYV), seed, fertilizer and water technology. The measurement of TFP indices indicates that the long-term trend in productivity growth of irrigated Greek agricultural system is positive. The result implies that the irrigated Greek agricultural production system has long-term sustainability. The result also indicates that fertilizer, fixed capital, rainfall and temperature are positively contributing to the mean production of Greek irrigated agriculture. On the other hand, pesticide, labour and fixed capital reduces variability of irrigated agriculture. To this end, long-term agricultural sustainability depends on patterns of input use.