THE ROLE OF TECHNOLOGICAL PROGRESS IN AGRICULTURAL OUTPUT GROWTH IN THE NMS UPON EUROPEAN UNION ACCESSION

Abstract

It is very important to increase input productivity in agriculture. This not only enables feeding the growing population, but also reducing agricultural pressure on the environment. The aim of the study is to determine the importance of TFP in comparison to the significance of production inputs in the growth of agricultural output in new EU member states. The analysis covered 2000-2016. Data available from the USDA on agriculture of the studied countries was used. The method of Solow residuals was used in the study. It was found that, in the studied countries, agricultural output decreased after political transformation and, since 2004, a further decrease of agricultural production was observed in five out of nine countries. Only in the three Baltic states and Poland was there an increase in production. In all countries, except Poland, a decrease in production intensity was observed. The area of agricultural land in all countries except the Baltic states decreased similarly. In the analyzed period, the highest increase in factor productivity was achieved in Lithuania (72%), Estonia (57%) and Latvia (51%), while the lowest in Hungary (7%) and Poland (21%). In each of the analyzed countries, the increase in TFP resulted in either an increase in agricultural output or the decrease in agricultural output was smaller than the decrease in the amount of inputs used. Technological change plays a dominant role in achieving an increase in agricultural production and an increase in the productivity of other inputs.