TFP Bioeconomy Impact post Covid-19 on the agricultural economy

Abstract

Background This research was focused on measuring the TFP bioeconomy post-Covid-19 in six regions of the world. Methods The panel data was organized with FAO Statistics data. Linear programming with an enveloping data analysis (DEA) approach was used to measure the Malmquist TFP indices to determine the inter-annual productivity and technical efficiency changes by region. Results The results show that the effect of Covid-19 on the bioeconomy productivity during the period 2012–2021 on average decreased by 11.6%. This effect was explained by the decomposition of the productivity change into the changes in technical efficiency. The workers decreased their efficiency by 11.7%. In the Northern American region, it decreased by 21.6%, in the Southern European region by 10.1, and in Western Europe by 11.7%. Conclusion The results show a downward trend that was affected in the year 2019 by Covid-19, however, it was possible to recover in the following year. One of the conclusions of these results is the effect of the immediate strategies that the governments of the region implemented. This effect was a little slower in the North American, Southeastern, and Eastern European regions. Finally, it is concluded that the measures implemented by the governments in the studied regions had an increasing effect in conditions of variable scale returns. In other words, the companies that remained on a constant scale decreased.