Subsidies and technical efficiency of Czech food processing industry
Result description
At present, the New Common Agricultural Policy for the period 2021–2027 has been currently formulated. Future of the agriculture and food industry is now widely discussed. These sectors play an important role, and it is necessary to maintain their competitiveness and sustainability. In this context, the main aim of the paper is to evaluate the technical efficiency of food processing firms by using Stochastic Frontier Analysis applying True Fixed Effect model on production function. It was identified, that increase of subsidies cause a slight increase in the mean of technical inefficiency. Also, the technical efficiency of the firms without subsidies is higher than in the subsidised firms and differs statistically significantly in the time and also with respect to the region of the firm. To summarise, the effect of subsidies is negative as the obtaining of the subsidies is not related to higher technical efficiency.
Keywords
food industrymanufacturingStochastic Frontier Functionsubsidiestechnical efficiency
The result's identifiers
Result code in IS VaVaI
Result on the web
https://www.agriculturejournals.cz/web/agricecon.htm?type=article&id=234_2018-AGRICECON
DOI - Digital Object Identifier
Alternative languages
Result language
angličtina
Original language name
Subsidies and technical efficiency of Czech food processing industry
Original language description
At present, the New Common Agricultural Policy for the period 2021–2027 has been currently formulated. Future of the agriculture and food industry is now widely discussed. These sectors play an important role, and it is necessary to maintain their competitiveness and sustainability. In this context, the main aim of the paper is to evaluate the technical efficiency of food processing firms by using Stochastic Frontier Analysis applying True Fixed Effect model on production function. It was identified, that increase of subsidies cause a slight increase in the mean of technical inefficiency. Also, the technical efficiency of the firms without subsidies is higher than in the subsidised firms and differs statistically significantly in the time and also with respect to the region of the firm. To summarise, the effect of subsidies is negative as the obtaining of the subsidies is not related to higher technical efficiency.
Czech name
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Czech description
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Classification
Type
Jimp - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50202 - Applied Economics, Econometrics
Result continuities
Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2019
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Agricultural Economics
ISSN
0139-570X
e-ISSN
1805-9295
Volume of the periodical
65
Issue of the periodical within the volume
4
Country of publishing house
CZ - CZECH REPUBLIC
Number of pages
9
Pages from-to
151-159
UT code for WoS article
000465455600001
EID of the result in the Scopus database
2-s2.0-85070476109
Basic information
Result type
Jimp - Article in a specialist periodical, which is included in the Web of Science database
OECD FORD
Applied Economics, Econometrics
Year of implementation
2019