Using malmquist TFP index for evaluating agricultural productivity: Agriculture of Türkiye NUTS2 regions

Authors : Zeynep ŞIŞMAN, Hatice TEKINERMOGULKOC

Pages : 513-528

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Publication Date : 2022-10-09

Article Type : Research Paper

Abstract :Agriculture is one of the main economic sectors in Türkiye. Therefore, a performance evaluation is essential for an improvement in agricultural sector. In this study, the productivity of Turkish agricultural sector was analyzed for the years between 2006-2015. A non-parametric technique, Data Envelopment Analysis insert ignore into journalissuearticles values(DEA); based Malmquist index method, was applied to calculate the Total Factor Productivity insert ignore into journalissuearticles values(TFP); indices for agriculture in 26 NUTS2 insert ignore into journalissuearticles values(The Nomenclature of Territorial Units for Statistics); regions of Türkiye for the selected 10-year period. Total agricultural production value is used as the output variable and six input variables are selected as: land, labor, machine, livestock and government investment. The analysis was conducted via the computer program DEAP2.1. The result reveals that agricultural TFP of regions has decreased by 2% annually on average. The maximum TFP growth in agriculture occurred between 2007 and 2008 with a mean increase of 12% in overall TFP of regions. On the other hand, the greatest regression in the overall TFP was observed in 2010-2011 period by a decrease of 13%.
Keywords : Malmquist Index, Total factor Productivity, Regions of Türkiye, Agriculture

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