Kristina Kocisova

Faculty of Economics, Technical University of Kosice, Slovakia

Slovakia

Kristina.Kocisova@tuke.sk

A slack-based measure of agricultural efficiency in the European Union countries

Beata Gavurova

Faculty of Economics, Technical University of Kosice,

Slovakia

Beata.Gavurova@tuke.sk

Anna Kotaskova

Faculty of Economics and Business, Paneuropean University in Bratislava

Slovakia

Anna.Kotaskova@gmail.com

Abstract. The main aim of this study is to examine the relative efficiency of agriculture in the European Union using Data Envelopment Analysis for the period 2005-2015. We have examined the relative efficiency using non-radial and non-oriented slacks-based model (SBM) under the assumption of a variable return to scale. We have looked for causes of inefficiency and have come up with the recommendations how to change input and output variable to reach the efficiency frontier. The results show that, on average, the European Union agricultural sector has been performing efficiently, and its development could be considered as stable. After taking into account the size of the economies in form of gross domestic product in market prices, we can say, that the efficiency was positively affected mainly by the development in large countries. By examining the optimal values for the variables used in the SBM model, it has been found that on average for the movement on the efficiency frontier it is necessary to reduce both inputs (labour and utilised agricultural area) and simultaneously increase both outputs (animal and crop production).

Received: May, 2017

1st Revision: August, 2017

Accepted: November, 2017

DOI: 10.14254/2071-8330.2018/11-1/14

JEL Classification: C14, Q10

Keywords: Data Envelopment Analysis, SBM model, non-radial, non-oriented, agriculture, European Union countries