Browsing by Author "Trnková, Gabriela"
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- ItemDeterminants of Persistent and Transient Technical Efficiency of Milk Production in EU(Technická Univerzita v Liberci, ) Trnková, Gabriela; Žáková Kroupová, Zdeňka; Ekonomická fakultaThis paper deals with the estimation of technical efficiency of milk production in the EU, its decomposition and the analysis of determinants of transient and persistent efficiency. Attention was focused on specialized milk production using FADN data in the period from 2004 to 2017. The analysis is based on the four-component model that represents the most advanced approach to technical efficiency analysis at present and the multi-step estimation procedure extended by technical efficiency determinants. To the best of our knowledge, this is the first application of this model based on the multi-step estimation with the inclusion of technical efficiency determinants on this type of specialization in the EU. The results show that the overall technical efficiency achieves the mean value of 68% and is relatively dense around the mean. The persistent inefficiency poses a greater problem for dairy production and varies considerably across European regions compared to the transient part. Based on the assessment of the development of transient efficiency, it is evident that it is influenced by the situation on the dairy market, in particular by the milk crises. The most effective conversion of inputs to outputs is achieved in the Netherlands, the United Kingdom, and Belgium and is least burdened with institutional and structural rigidities. The results show that transient efficiency is positively influenced by paid labour share, rented land share, level of modernization and level of off-farm activities and negatively by the level of subsidies on livestock. The positive effect of the economies of size on persistent efficiency is not proved. However, specialization, despite the higher vulnerability of specialized farms to price shocks, affects persistent efficiency positively. Localization of farms in LFAs, as expected, has a negative impact on persistent technical efficiency.
- ItemDRIVERS OF ECONOMIC PERFORMANCE: WHAT CAN WE OBSERVE IN THE CZECH FOOD INDUSTRY?(Technická Univerzita v Liberci, ) Trnková, Gabriela; Žáková Kroupová, Zdeňka; Ekonomická fakultaThis paper is focused on the investigation of the competitiveness drivers, namely technical and scale efficiency and technological change, and their relation to the profitability of the Czech food processing companies in the period 2016–2019. This investigation is based on the stochastic frontier modelling of an input distance function in the specification of the four-error-component model. The model is estimated with a multi-step procedure employing the generalized method of moments estimator addressing the potential endogeneity of netputs, and panel data gained from the Bisnode Albertina database. The results revealed (evaluated on the sample mean) that investigated food processing sectors were scale efficient in the analysed period, however, their production technologies exhibited prevailing technological regress. Moreover, the room for almost 17% cost reduction by the technical efficiency improvements was found out in all investigated sectors. Although inter-sectoral differences exist in the scale efficiency, technological change and technical efficiency dynamics, to increase the productivity and competitiveness of food processing companies, it is generally appropriate to focus on technical efficiency and technological change improvements. Both these competitiveness drivers connected with the cost reduction and minimizing of wastage of inputs are achievable through innovations. In general, the basic source of their financing is profit, the achievement of which is supported by cost minimization. However, it was found that sub-sectors, which are linked to sensitive sectors of agricultural production – that means sectors with the lowest national self-sufficiency, the highest level of imports and thus strong cost reduction pressure – have problem to translate the ability to produce efficiently into profitability. Although these food sectors, which have been also facing strong competition for a long time, which leads to significant pressure to reduce costs, achieved the highest technical efficiency, their profitability was lowest from the investigated sectors.